EV stocks have multiplied in Tesla‘s (TSLA) wake and as electric cars look to go mainstream — but not all are created equal. Some car stocks are more ready than others for an EV future. Here are the top-rated electric vehicle makers.
X
- Tesla
- General Motors
- Ford
- BYD
- Xpeng
Are Electric Vehicle Stocks A Good Buy?
Companies with strong track records of earnings growth and market outperformance that are forming bullish chart patterns are the best candidates for stocks to buy and watch, according to CAN SLIM guidelines.
But most of the new EV stocks have neither. They include Fisker (FSR), Canoo (GOEV), Faraday Future (FFIE), Lordstown (RIDE) and Xos (XOS). In fact, many of these EV startups aren’t producing or delivering electric vehicles yet.
However, two startups have begun selling their first electric vehicles, bringing in revenue. Lucid Motors (LCID) began deliveries of the Lucid Air, a luxury electric sedan Oct. 30. Rivian Automotive (RIVN) has also started delivering the R1T, an electric pickup, with the R1S SUV due in early 2022.
Meanwhile, Chinese EV stocks like Nio (NIO), Xpeng (XPEV) and Li Auto (LI) sell tens of thousands of vehicles, but are unprofitable for now. Then there are legacy auto giants like General Motors (GM), Ford (F) and China’s BYD Co. (BYDDF) that are transforming into electric-vehicle powerhouses.
Ferrari (RACE) will launch its first all-electric supercar in 2025, joining the ranks of EV stocks after rejecting the shift to electric vehicles for decades.
Electric Car Stocks Include Battery Stocks, Charging Stocks, EV Suppliers
The growing universe of EV stocks doesn’t end with carmakers. Other companies make car batteries and car charging stations. Among them are EV charging networks ChargePoint (CHPT), EVgo (EVGO), Blink Charging (BLNK) and Wallbox (WBX).
Hyliion (HYLN) is developing electric powertrains for big-rig trucks as well as powertrains that can be compatible with renewable natural gas and hydrogen fuel cells.
Romeo Power (RMO) makes battery packs for commercial EV fleets. And QuantumScape (QS) touts a major breakthrough in solid-state lithium metal batteries.
Magna (MGA), a Chevy Bolt supplier, will make battery enclosures for GM’s Hummer electric truck, which just hit the market. Magna already makes e-drive gearboxes for Nio and Xpeng. The company also will make the Fisker Ocean SUV, due out late next year.
Best EV Stocks To Buy Or Watch
The charts of several EV stocks are improving after severe damage in the past year. These stocks had the best mix of fundamentals and technicals, as of Jan. 21.
Tesla stock has an IBD Composite Rating of 99 and an EPS Rating of 71. Shares tried to clear a 1,208.10 double-bottom buy point on Jan. 3, then slid. Tesla surged in early January on blowout electric-car deliveries. While IBD Leaderboard stock TSLA has slid below the 50-day/10-week lines, its RS line is not far from highs.
The top auto and EV stock by market cap predicts 50% average annual growth in vehicle deliveries. In 2021, Tesla grew deliveries 87% to 936,172 vehicles. Its first electric pickup truck, the Cybertruck, is due in late 2022. The new Model S Plaid is Telsa’s fastest car yet, going from zero to 60 miles per hour in less than two seconds.
F-150 Lightning Fuels Ford Stock
Ford stock has a Composite Rating of 88 and an EPS Rating of 37. Shares remain far extended from a 16.55 entry but are now below the 50-day line.
Shares pegged fresh highs in January, before tumbling amid a broad sell-off. On Jan. 4, Ford said it will build nearly twice as many F-150 Lightning electric trucks due to hot demand. That EV is due by mid-2022. Ford also owns 12% of Rivian.
Last year, the company reinstated the Ford stock dividend and hiked full-year outlook. Last May, Ford hiked spending on electric vehicles to more than $30 billion by 2025, and expects 40% of its global sales to be fully electric by 2030.
Lucid stock has a Composite Rating of 65 and an EPS Rating of 18. Last October, Lucid stock staged a successful breakout past 28.49. It’s now back below the 50-day line and well off highs. The new Lucid Air EV won MotorTrend’s coveted “2022 Car of the Year” award. Then Lucid went on a tear after starting its first EV deliveries. The loss-making startup should start generating EV revenue, while profits are still a way off. Lucid’s Air Dream edition outruns the longest-range Tesla car by more than 100 miles. The Air Dream starts at $169,000, with more affordable versions to follow.
China’s BYD Took EVs To Europe
BYD (BYDDF) has no Composite Rating and an EPS Rating of 23, but it is profitable. Shares sit under the 50-day line but above the 200-day line. Delisting and omicron fears are weighing on China EV stocks. BYD is Hong Kong-listed, trading over the counter in the U.S.
The Chinese car and battery giant is ramping up on electrification. BYD more than tripled EV sales in December and full-year 2021. A long-time holding of Warren Buffett’s Berkshire Hathaway (BRKB), BYD has begun selling the Tang electric SUV in Norway. The Shenzhen-based company will likely substantially increase exports in the coming year, with Europe and Australia among the key markets. BYD is a major EV battery maker and supplier. It makes its own chips, which allowed rapid expansion in 2021.
Tesla Vs. BYD: Which Booming EV Giant Is The Better Buy?
Xpeng stock has a Composite Rating of 68 and an EPS Rating of 7. Shares are back below the 50-day line. But XPEV stock is working on a new 56.55 buy point. Xpeng (XPEV) is growing EV sales at a blistering pace.
Fast-Growing Xpeng EV Lineup
Xpeng already sells two electric SUVs and two electric sedans, an impressive lineup for a young company. A new flagship SUV, the G9, will be coming in late 2022, along with a highly advanced driver-assist system and a self-driving car service. Backers of the company include Alibaba (BABA).
In the near term, EV stocks will continue to face chip constraints but those are starting to lessen. Battery costs and shortages could be an issue in the mid-term, as supplies of lithium and other raw materials struggle to keep up with demand. Longer term, more government support is likely headed for electric vehicles, while greater EV production should help bring down vehicle prices.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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