Electric vehicle stocks have been the darling on Wall Street this year. Despite various uncertainties posed by the coronavirus pandemic, the share prices of many top electric vehicle stocks continue to march higher. Of course, not all-electric vehicle companies are created equal. That means some EV stocks could be a better investment than others.
There are good reasons to be optimistic about the EV space. With Tesla (TSLA Stock Report) beginning delivery of its Model Y and Ford’s (F Stock Report) Mustang Mache-E showing up at the end of this year. First, the traditional automakers are racing to have a slice of the EV future. Secondly, electric vehicle stocks are also booming with TSLA stock up more than 380% this year. With the world seemingly tilting towards a greener mode of transportation, chasing sky-high EV stock like Tesla could still prove to be worth the risks. However, if you are not so sure about piling into the biggest names of the industry, there are alternatives that are worth adding to your watchlist.
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It’s hard not to include Tesla in the list when it comes to top electric vehicle stocks to buy. Shares of Tesla were skyrocketing and closed 12.58% higher on Monday. There are a few reasons for the recent surge in TSLA stock.
First, Musk tweeted that many exciting things will be unveiled at the company’s upcoming Battery Day presentation on September 22. But that tweet appears to be the weak link for Monday’s surge. In fact, it could be the news report from Wood Mackenzie that carries more weightage.
From the report, the consultant discussed the world’s need for 800,000 newtons of lithium production by 2025. Which explains why all this new lithium will be needed. Woods’ analysis of current trends in global warming and electric vehicle production “brings electric vehicle (EV) uptake forward by ten years and sees EVs make up around 40% of passenger car sales by 2030.”Top Electric Vehicle Stocks To Watch Apart From Tesla: Nio Inc
Nio (NIO Stock Report) is one of the most promising electric vehicle stocks in the market. Dubbed the “Tesla of China”, the Chinese EV maker appears to be cementing a strong long-term foothold in the rapidly growing market. Although Tesla is currently dominating the space, Nio seems like a strong contender to compete alongside in the long run. The company has reported strong growth and a positive operating margin for the first time this year. These make NIO stock a top electric vehicle stock to watch in the long run.
While some companies appear to be outright copying Tesla, NIO has its own definition when it comes to EVs. The company is also building an EV ecosystem and community through the use of its NIO Houses and NIO Spaces.
More significantly, the company is notably relying on battery swap technology to build out a comprehensive EV infrastructure. It has rolled out its BaaS (Battery as a Service), which allows users to swap batteries in minutes. This saves time in comparison with charging batteries. In fact, it may be well-suited to high-density cities in China.Top Electric Vehicle Stocks To Watch Apart From Tesla: General Motors
Okay, go ahead and call me a cheater with the last pick, but hear me out. Like Ford, General Motors (GM Stock Report) has been eyeing for a slice in the EV space for some time now. From wanting to spin-off an EV unit to partnering with Nikola Motors (NKLA Stock Report), the legendary automaker seems to have something up its sleeves.
GM appears to be planning to transition to electric vehicles over time. It has been quietly spending money and resources to achieve that. As you may or may not know, GM has developed a new electric-vehicle battery technology, called Ultium which Nikola will be using for its Badger.
Many also did not realize that GM has developed a new electric-vehicle architecture for a wide range of new EVs. On top of that, GM is already scaling up to launch a slew of electric vehicles in China, the world’s largest EV market. With all that in mind, would you start investing in GM stock today?