Are These EV Stocks The Top Stocks To Buy Now?
Going into the current trading week, investors will likely be keeping an eye on diplomatic relations between Ukraine and Russia. Despite all this, some may be considering longer-term plays in the stock market, such as electric vehicle (EV) stocks. For one thing, EVs are arguably the future of the automobile industry now. With growing broad-based efforts to further reduce global greenhouse gas emissions, this would be apparent. In fact, the U.S. government continues to make moves to further bolster this upcoming industry as well.
For starters, as of earlier this month, the Biden administration is planning to invest $5 billion towards EV charging stations. To elaborate, this would involve building a network of stations nationwide over the next five years. The main bodies of government leading this effort would be the federal Transportation and Energy departments. In theory, this could serve to further encourage the general adoption of EVs in the U.S. Moreover, the Pentagon is currently making plans to boost the nation’s supply of rare earth metals and lithium. This would serve two crucial purposes. Firstly, lithium would be a vital resource in making EV batteries. Secondly, having a stockpile of these commodities would reduce long-term dependence on suppliers from other countries.
At the same time, some of the biggest names in the industry continue to thrive as well. Take Tesla (NASDAQ: TSLA) and Fisker (NYSE: FSR) for instance. On one hand, Tesla posted record quarterly deliveries in its latest quarterly earnings update. On the other hand, Fisker is now taking orders for its second EV, the PEAR. However you look at it, the EV industry is powering forward despite all the headwinds in the stock market today. With all this in mind, could one of these EV stocks be worth noting now?
EV Stocks To Buy [Or Sell] Today
For starters, we will be taking a look at a classic automotive goliath, Ford. Through its global operations, the company provides consumers worldwide with its industry-leading vehicles. Notably, this ranges from its vast array of trucks and utility vehicles to vans and cars. Not to mention, the company is also actively working to electrify its portfolio with the introduction of new EVs. The first of which would be its upcoming F-150 Lightning that continues to gain attention from consumers across the board. This is evident as Ford recently noted that there are over 200,000 reservations for the EV.
Speaking of its EV plans, sources from Bloomberg recently provided an interesting update on Ford. In detail, the report suggests that Ford is looking to spin-off its EV business from its legacy operations. This would serve to clearly distinguish its internal combustion engine arm from its electric-focused work. Should this be the case, it could provide Ford with more flexibility when it comes to expanding its offerings across the board.
Meanwhile, there is also the company’s Ford+ strategy to consider. As of last year, the company has and continues to stick to this plan for its shift towards EVs. According to CEO Jim Farley, the Ford+ game plan includes investing over $30 billion on EVs through 2030. In fact, by Ford’s current estimates, it will have an annual EV production capacity of 600,000 units by 2024. After considering all of this, would F stock be a top buy in your books now?
General Motors is another titan in the automobile space today that is increasingly focusing on EVs. Similar to our previous entry, the company is hard at work adapting its automotive offerings to the new EV-focused age. So much so that General Motors is planning to stop selling internal combustion engine vehicles by 2035. In particular, the company is expecting its Cadillac lineup of vehicles to be all-electric by 2030.
Furthermore, General Motors appears to be expanding its work in the automotive tech business now. To highlight, the company’s autonomous vehicle (AV) tech unit, Cruise, is now making moves. Just last week, Cruise revealed that it has applied for permission from U.S. regulators to construct and deploy its self-driving vehicle, the Cruise Origin. In practice, this would involve the testing of vehicles without human drivers, steering wheels, or brake pedals. Ideally, should General Motors receive the necessary approvals, this could be a win. After all, being able to test out AV features could bolster its existing automotive offerings in the long term.
In a blog post, Cruise notes, “The submission of this petition signals that Cruise and GM are ready to build and deploy the Origin, here in America.” Cruise also adds that seniors and the visually impaired could benefit from such expansions in mobility options. Overall, with General Motors seemingly kicking into high gear, will you be watching GM stock?
Last but not least, we will be taking a look at Rivian, a fresher name in the EV world now. Since going public in mid-November last year, investor hype for the company has cooled off to some extent. This comes as the company missed production figures, citing issues with establishing its manufacturing facilities. Regardless, the company does not seem to have plans of slowing down moving forward.
Evidently, the company recently announced a major change in the form of an appointment for its top manufacturing position. In brief, Rivian now has Tim Fallon, a former Nissan executive at the helm of its manufacturing division. Namely, Fallon is joining the Rivian team from a 15-year career as VP of Manufacturing at Nissan. If anything, this would go to show that Rivian is intent on meeting its current goals despite initial hiccups. Additionally, the company continues to generate hype for its upcoming R1T electric pickup truck.
Just last week, the company released a video talking about Gear Guard. According to Rivian, Gear Guard is an autonomous security feature for the R1T. Through a combination of systems, Rivian owners will receive live notifications should anything trigger the car’s alarm. If all that wasn’t enough, recent reports also note that a fund led by billionaire investor George Soros was holding over $2 billion in RIVN stock going into 2022. All in all, while Rivian navigates its current rough patch, some would argue that RIVN stock is trading at attractive levels now. Would you say the same?