Are These Top EV Stocks In Your Portfolio Now?
Electric vehicles (EVs) are among the emerging trends in the stock market today. Sure, while meme stocks may boast explosive gains, some would argue that EV stocks hold long-term growth potential. If anything, this would be thanks to the industry’s role in combating the current global climate crisis. Most seasoned investors would know by now that this has and continues to result in massive investments towards EV development. For the most part, we can see this in numerous companies across the board.
On one hand, some of the biggest names in the tech world such as Alphabet (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) are eyeing the space. In particular, Amazon-backed EV startup Rivian is already making waves before going public. Just yesterday, news broke of the company’s EVs being ready for sale across all 50 states in the U.S. While Rivian’s stock may not be available to investors yet, the hype could persist till then. On the other hand, upcoming names in the EV space continue to gain attention from institutional investors as well.
Namely, Lucid Motors (NASDAQ: LCID) received a rather rosy update by Bank of America (NYSE: BAC) analyst John Murphy earlier this week. Upon initiating coverage on LCID stock, Murphy hit it with a Buy rating and a price target of $30. This would suggest a potential upside of 43% over its current price of $21.20 as of 2:19 p.m. ET. By and large, the EV industry does not seem to be slowing down anytime soon. With all this focus on EV stock on the stock market now, here are three more to consider.
Best EV Stocks To Buy [Or Sell] Today
Ford Motor Company
First up, we have Ford, an EV company that is shaking up the EV industry. The company in 2021 has announced huge investments into the industry, with planned electrification spending to be over $30 billion by 2025. This would include the development of its IonBoost batteries. In fact, the company now expects 40% of its global vehicle volume to be all-electric by 2030. F stock currently trades at $13.44 as of 2:17 p.m. ET and is up by over 80% in the past year alone.
The company together with Argo AI and Walmart (NYSE: WMT) will be working to launch an autonomous vehicle delivery service in Miami, Austin, Texas, and Washington D.C. This would be Walmart’s first multi-city autonomous delivery collaboration in the U.S. and its last-mile delivery service will use Ford’s self-driving test vehicles that are equipped with the Argo AI Self-Driving System to deliver Walmart’s orders to customers.
On September 13, 2021, Ford also announced a new chief digital and information officer, Mike Amend. Mr. Amend will help focus the company’s use of data, software, and technology to drive growth and create value for both customers and stakeholders. “Mike adds dimension to our team as we use technology and software to transform our company and transportation from the inside-out,” said CEO Jim Farley. “Ford has always been an innovator in vehicles; now we’re taking our digital capabilities to new levels to further differentiate ourselves with customers and from competitors.” Given this exciting piece of news, will you consider investing in F stock?
General Motors Company
General Motors (GM) is a global company that is also focused on advancing an all-electric future. Its Ultium battery platform, which is the heart of its strategy will power everything from its mass-market to its high-performance vehicles. The company, along with its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun, and Wuling brands. GM stock currently trades $51.74 as of 2:17 p.m. ET and has enjoyed gains of over 55% in the past year alone.
In early August, the company reported strong second-quarter financials. Diving in, the company says that it continues to prioritize production of its highest demand vehicles and continued to gain significant retail market share in the full-size pickup segment in the U.S. It also reported a revenue of $34.2 billion for the quarter, more than doubling from a year earlier. Net income for the quarter was $2.8 billion, translating to diluted earnings per share of $1.90.
Notably, the company says that it continues to sustain strong momentum in China during this second quarter as it delivered more than 750,000 vehicles. This is an increase of 5.2% compared to a year earlier. Wuling sales increased 28% to over 346,000 units and its Hong Guang MINI EV had record quarterly deliveries of more than 85,000 units. This ultimately strengthens GM’s leadership position in China’s EV market. All things considered, will you add GM stock to your portfolio?
Another name to consider among the top EV stocks today would be Nio. For the uninitiated, Nio is a leading player in the Chinese EV market now. In detail, Nio offers consumers cutting-edge EVs that include premium features such as autonomous driving. Now, NIO stock currently trades at $37.06 as of 2:17 p.m. ET. This would be after gaining over 90% in the past year. Sure, the company’s shares have been mostly going through a rough patch this year. Despite all of this, some would argue that it could be a good time to buy on the current dips.
Nio is likely facing some headwinds from the recent regulatory updates in China. With this being its core end market, it makes sense that investors are concerned about the company’s long-term growth. However, according to China’s Ministry of Industry and Information Tech (MIIT), there are going to be sector consolidations. The reason for this move by the MIIT is likely to trim the excess fat in the booming Chinese EV industry. By current estimates, the number of “new energy vehicles” businesses surged by over 81,000 this year. Overall, this adds up to a whopping 321,000.
Given Nio’s massive scale and presence in the current market, the company could, in theory, stand to benefit from this. Simply put, the move would serve to eliminate potential competitors while also opening up new EV tech for Nio to acquire. Not to mention, the company continues to gain momentum on the financial front. In its latest fiscal quarter report posted last month, Nio saw green across the board. The company posted year-over-year surges of 127% in total revenue and 63% in earnings per share. All in all, would NIO stock be a top EV stock pick for you?