Are These The Best EV Stocks To Buy In 2020?
In the last few years, electric vehicles have become much more common for the average person to buy. This has caused a large volume increase for electric vehicle stocks. This type of vehicle has the potential to be the new normal in the transportation medium. Since this is a rapidly growing sector, there are many new electric vehicle stocks showing up on the market. That is why investors see electric vehicle stocks as a way to profit.
One electric vehicle stock that IPO’d recently was XPeng Inc. (XPEV Stock Report). Electric vehicle companies are able to raise funding by going public in the market. Despite the current economic situation, the best electric vehicle stocks to watch have been able to strive in 2020. Some like Arcimoto Inc. (FUV Stock Report) has been able to reach new record highs. So let’s look at three electric vehicle stocks that have been trending in the market.
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Top Electric Vehicle Stocks To Buy [Or Sell]: Tesla
The first electric vehicle stock on this list is Tesla Inc. (TSLA Stock Report). Tesla currently owns 81% of the electric vehicle market in the United States in 2020. Tesla’s stock price has gone up exponentially in the long term. Tesla reached the 1 million vehicles produced a mark in 2020 as well. Recently Tesla did a stock split which made its price go from $2200 a share to $500 a share, offering more shares for investors.
This stock split grows the number of shares without decreasing the value. On September 3rd, TSLA stock started to fall through. This seemed to be a similar trend with many tech stocks. The Dow slid 726 points on the same day. So while TSLA stock price was at $500 a share on average before the 3rd, now it has fallen to $330 a share on September 8th. On the 8th it was noted that Tesla was not admitted into the S&P 500. But could TSLA stock make a comeback? That is unsure but that is why it is on this list of electric vehicle stocks.
Top Electric Vehicle Stocks To Buy [Or Sell]: Nikola Corporation
The next electric vehicle stock to watch is Nikola Corporation (NKLA Stock Report). Nikola is an EV company that has plans to produce many electric vehicles. The company has not produced any yet but has announced many plans. Nikola went public in the market on June 4th, 2020. On September 8th, Nikola announced that it is teaming up with General Motors Company (GM Stock Report). Nikola has given GM an 11% stake in the company. In addition to this, they will be partnering up to make an electric pickup truck called the Badger.
This news caused NKLA stock to rise by 40% and GM stock to rise by 8%. The CEO of GM, Mary Barra said, “What we’re focused on is creating an all-electric future and this announcement is very important today because it shows another very strong validation of our technology, our hydrogen fuel cell technology as well as our Altium batteries.” It will be interesting to see if this partnership is successful in the future. That is why NKLA stock is an electric vehicle stock to watch.
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Top Electric Vehicle Stocks To Buy [Or Sell]: Nio
The last electric vehicle stock on this list is NIO Limited (NIO Stock Report). This company is a Chinese electric vehicle maker that has been trending this year. When NIO released its second-quarter sales results in June, they were much better than analysts predicted. The company’s vehicle sales were up 215% year over year. This news peaked investors interest causing an increase of volume for NIO stock in recent times.
NIO stock was at just $3 a share at the start of 2020. Since then, NIO stock has gone up to $17 a share as of September 8th. In just the last month, NIO stock is up more than 30% a share. Just like TSLA stock though, NIO stock is down the week of September 7th. From the 1st to the 7th, NIO stock is down more than 10%. Do you think NIO stock will be able to rise back up? That is why it is on this list of electric vehicle stocks.
The electric vehicle market seems to be ever-growing. There are new advancements in technology and breakthroughs all the time in this sector. Even companies producing batteries and parts for electric vehicles are climbing in the news as well. That is why TSLA stock, NKLA stock, and NIO stock are on this list of electric vehicle stocks.