Ev stocks to watch: 12 Best EV Stocks To Buy For 2023
Semiconductor equipment maker Aehr offers products for testing logic, optical and memory integrated circuits, as quality and reliability needs increase. The Fremont, Calif.-based company has been growing revenue by double and triple digits. In 2022, China auto giant BYD switched to producing only all-electric vehicles and plug-in hybrid electric vehicles . The bulk of those EVs are the company’s ES8, ES6, and EC6 vehicles. Production of the company’s ET7 sedan is also ramping up, with the new vehicle now being sold into foreign markets. Nikola currently sources batteries from LG Energy Solutions and in 2022 signed a deal with Proterra, another EV maker, to use Proterra’s battery packs in Nikola’s electric trucks.
The company designs, manufactures and markets test and burn-in products to the semiconductor manufacturing industry. The company delivered 120,757 vehicles in 2022, up 23% year over year. The company makes a profit while most other stocks in this sector do not, netting earnings per share of $3.62 in 2022. Companies with two characteristics generally make the best candidates for stocks to buy and watch, according to CAN SLIM guidelines. First, they need a strong track record of earnings growth. Second, they should be technically strong and be shaping bullish chart patterns.
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In 2021, Proterra became a public company through a merger with special purpose acquisition company ArcLight Clean Transition. Founded in 2014, Chinese EV maker Nio designs, jointly manufactures and sells smart and connected premium electric vehicles. NerdWallet’s ratings are determined by our editorial team.
ChargePoint Holdings (CHPT)
Li Auto bills itself as a pioneer in successfully commercializing extended-range electric vehicles in China. The company started volume production of its first model, Li ONE, in November 2019 and launched its initial public offering in July 2020. In 2022, the company ranked first in both China’s full-size and large SUV markets.
BYD sold more than 1.85 million electric cars in 2022, including hybrids. In 2022, as well as in 2021, BYD more than tripled EV sales. Founded in 2004, Proterra designs and manufactures zero-emission electric transit vehicles and EV technology solutions for commercial applications.
But the stock represents a big risk, since it’s a very new and untested stock. Nevertheless, GM has belatedly recognized the importance of EVs to its business, and the company delivered 39,096 EVs in 2022, up 57% year over year. Nio trades at a significantly lower price/sales ratio, and the discount has widened this year. Nio’s returns have been relatively subdued, while Tesla has nearly doubled. Shares fell 65% during 2022 as interest rates rose and the tech sector got crushed (and the company’s CEO, Elon Musk, dallied with Twitter).
Emerging Tech Outlook 2023
Start-up EV makers can compete fairly well with traditional automakers for EV market share, making it difficult to discern which companies will ultimately dominate the electric car market. That unpredictability makes investing in the electric car industry more risky than adding portfolio exposure to the automotive industry as a whole. Investors seeking portfolio exposure to the electric car market, but who don’t want to select individual stocks, can buy shares in exchange-traded funds .
Also, electric car manufacturing involves the use of cutting-edge technology, so investors must consider the ability of electric car companies to meet such technological standards. These are theelectric carstocks with the highest YOY sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to boost revenue organically or through other means and find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share.
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TSLA Stock
Finding the top electric car stocks to buy should stretch beyond stocks of the automobile manufacturers like front-runner Tesla. Investors should also seek out and analyze stocks of the companies that make electronic safety equipment, connector systems, batteries, and other components of electric vehicles. The future for electric vehicles and electric car stocks looks promising. In just about a decade, one of every five cars sold is expected to be electric. By 2030, electric vehicles will comprise about half of car sales. Like Tesla, Rivian stock has crashed since peaking in late 2021, with the company’s shares falling by roughly 80% from their highs.
The company has also collaborated with Hyzon Motors to develop a fuel cell-powered vehicle that will integrate Hyliion’s electrified powertrain into a Peterbilt chassis. When you open a new, eligible Fidelity account with $50 or more. CHPT has generated solid revenue over the last twelve months, up significantly from 2021 levels.
They also offer hardware for home and commercial charging. This price collapse signals to investors how risky the EV space can be. And yet, despite a falling market share as competition heats up, Tesla still commanded 65% of new EV sales in 2022, down from 79% in 2020. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Boom in the electric vehicle industry is also aided by government spending, particularly in the Western world and in China. The U.S. government passed the Inflation Reduction Act last year which promised an eye popping $370 billion in subsidies for renewable energy and climate investments. Since the U.S. is one of the biggest car markets in the world, this opens the door to domestic firms and those with U.S. based operations to have a solid footing in the country. The best electric car company stocks are generally companies that are already producing and selling electric cars rather than companies just planning to do so. Investors must take market capitalization, sales and earnings growth, cash flow, and cost of production into account before investing in the sector.
There are plenty of options when it comes to electric vehicle ETFs, although none are pure-play investments in EVs. Any list of electric car stocks needs to include the granddaddy of them all, Tesla. Elon Musk’s electric car company had a banner year in 2021. Most of the vehicles were Model 3 sedans and Model Y crossover SUVs. Management has worked through inflation, supply chain, and factory ramp up issues in 2022, with production dipping sequentially in the first and second quarters of the year. However, in the third quarter of 2022, production rose dramatically, hitting an annual run rate of more than 1.4 million vehicles.
