15 Best Electric Car Stocks To Buy Now
In this article, we will discuss the 15 best electric car stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Electric Car Stocks To Buy Now.
The Electric Car Industry: An Analysis
Electric car stocks are increasingly becoming a popular investment option as the electric vehicle (EV) industry continues to grow. The global electric vehicle market is expected to reach a total market value of more than $1.1 trillion by 2030, according to a recent report from Beyond Market Insights. The global electric vehicle market was valued at $178.5 billion in 2021, and is projected to grow at a compound annual growth rate of 22.5% from 2022 through 2030.
Investing in electric car stocks offers investors the potential for strong returns as the technology becomes more mainstream and the demand for electric cars continues to increase. When investing in electric car stocks, it is important to consider the various companies involved in the industry. Major automakers, such as Ford Motor Company (NYSE:F), Tesla, Inc. (NASDAQ:TSLA) and General Motors Company (NYSE:GM), are all investing heavily in electric vehicle technology in order to retain their leading positions in the broader automotive market. Additionally, several smaller companies, such as XPeng Inc. (NYSE:XPEV) and NIO Inc. (NYSE:NIO), are also beginning to gain traction in the industry. It is important to research each company’s financials and the potential of the technology they are developing before investing, and this is where we come in. Continue reading to explore some of the best electric car stocks to buy now.
Our Methodology
We screened for electric car companies with strong fundamentals, healthy balance sheets, and solid product pipelines. Special attention was given to the market sentiment around each stock, and only those with positive market sentiment made it to our list. Along with each stock, we have given the analyst ratings, hedge fund sentiment, and salient features that make them attractive investment vehicles. These stocks are ranked according to their popularity among elite money managers, from least to most.
15 Best Electric Car Stocks To Buy Now
15. Mullen Automotive, Inc. (NASDAQ:MULN)
Number of Hedge Fund Holders: 4
Mullen Automotive, Inc. (NASDAQ:MULN) is an American electric vehicle company that manufactures and distributes electric vehicles. The company also owns CarHub, an AI-powered platform that offers buying and selling services of cars. On November 2, Mullen Automotive, Inc. (NASDAQ:MULN) announced that it has paid down $13 million of its debt, effectively bringing its current debt down to below $10 million. Mullen Automotive, Inc. (NASDAQ:MULN) is focusing on strengthening its balance sheet and is one of the best electric car stocks to buy now.
On December 1, Mullen Automotive, Inc. (NASDAQ:MULN) announced that it has completed the acquisition of Electric Last Mile Solutions, a Michigan-based EV company. ELMS' plant in Mishawaka will now be used for the production of the Mullen FIVE SUV, the company's next-gen electric SUV.
At the end of Q3 2022, 4 hedge funds were bullish on Mullen Automotive, Inc. (NASDAQ:MULN) and disclosed a position worth $0.92 million. This is compared to 2 hedge funds in the previous quarter with stakes worth $0.12 million. The hedge fund sentiment for the stock is positive.
Mullen Automotive, Inc. (NASDAQ:MULN) is rising in popularity among elite money managers. Some of the best electric car stocks that are popular among hedge funds include Ford Motor Company (NYSE:F), Tesla, Inc. (NASDAQ:TSLA), and General Motors Company (NYSE:GM).
14. Tata Motors Limited (NYSE:TTM)
Number of Hedge Fund Holders: 11
Tata Motors Limited (NYSE:TTM) is a global automotive company headquartered in India. The company produces a wide range of commercial and passenger vehicles. Tata Motors Limited (NYSE:TTM) is among the largest automobile manufacturers in India and the world. The company has been expanding its electric vehicle offerings and currently offers the Nexon EV, Tigor EV, Tiago EV and the Xpres-T EV. Tata Motors Limited (NYSE:TTM) is well-positioned to benefit from the growth of the global electric car market due to its size and scale and is ranked among the best electric car stocks to buy now. The company has free cash flows of INR 85.2 billion.
On October 6, Goldman Sachs analyst Chandramouli Muthiah took coverage of Tata Motors Limited (NYSE:TTM) with a Neutral rating and an INR 450 price target.
At the close of Q3 2022, 11 hedge funds held stakes in Tata Motors Limited (NYSE:TTM). The total value of these stakes amounted to $63.9 million, up from $45.4 million in the previous quarter with 8 positions. The hedge fund sentiment for the stock is positive. As of September 30, Think Investments is the top investor in the company and has a position worth $19.46 million.
13. Canoo Inc. (NASDAQ:GOEV)
Number of Hedge Fund Holders: 12
Canoo Inc. (NASDAQ:GOEV) is an innovative mobility technology company that manufactures electric vehicles for both commercial and consumer markets. The company is at the forefront of the electric vehicle revolution, and has unveiled a lineup of vehicles that have already attracted significant investor interest. The company's futuristic Canoo Lifestyle Vehicle, a battery-electric minivan, has already won several contracts from fleet solutions providers, Zeeba Vans and Kingbee. Canoo Inc. (NASDAQ:GOEV) is one of the best electric car stocks to buy now.
On September 15, Stifel analyst J. Bruce Chan took coverage of Canoo Inc. (NASDAQ:GOEV) with a Buy rating and a $4 price target. On November 21 Tony Aquila, CEO of Canoo Inc. (NASDAQ:GOEV) acquired 4.5 million common shares of the company for $5 million.
At the end of the third quarter of 2022, 12 hedge funds were long Canoo Inc. (NASDAQ:GOEV) and disclosed stakes of $3.39 million in the company. Of those, LMR Partners was the top shareholder in the company and held a position worth $1.04 million.
12. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Number of Hedge Fund Holders: 15
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is a Swedish manufacturer of electric vehicles. Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is well-positioned to benefit from the increasing demand for electric vehicles in Europe. The company has a strong presence in the region, and is expected to launch three new electric vehicles by 2026, further increasing its market share. Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is placed on our list of the best electric car stocks to buy now.
On November 11, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) posted earnings for the fiscal third quarter of 2022. The company reported a revenue of $435.45 million, up 104.5% year over year and ahead of Wall Street consensus by $34 million. The company reported net income of $299.39 million. Moreover, the company's vehicle sales increased by 108% year over year and amounted to $425.3 million. As of September 30, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) has cash and cash equivalents of $988.26 million.
Wall Street is bullish on Polestar Automotive Holding UK PLC (NASDAQ:PSNY). On November 16, Citi analyst Itay Michaeli reinstated coverage of Polestar Automotive Holding UK PLC (NASDAQ:PSNY) with a Buy rating and a $12 price target.
At the end of Q3 2022, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) was spotted on 15 investors' portfolios that held collective stakes of $62.6 million in the company.
11. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 15
Lucid Group, Inc. (NASDAQ:LCID) is a California-based mobility technology and automotive company, that develops electric vehicle technologies. The company designs, engineers, and builds electric vehicles, EV powertrains, and battery systems. At the end of Q3 2022, 15 hedge funds were invested in Lucid Group, Inc. (NASDAQ:LCID) and disclosed positions worth $99.5 million.
On November 8, Lucid Group, Inc. (NASDAQ:LCID) posted earnings for the third quarter of fiscal 2022. The company generated a revenue of $195.46 million, up 84,149% year over year, and outperformed analyst estimates by $4.12 million. Shortly after the company's earnings release, R.F. Lafferty analyst Jaime Perez revised his price target on Lucid Group, Inc. (NASDAQ:LCID) to $17 from $19 and reiterated a Buy rating on the shares.
As of December 7, Lucid Group, Inc. (NASDAQ:LCID) is trading at a PE multiple of 8x and is one of the best undervalued electric car stocks to buy now.
10. Fisker Inc. (NYSE:FSR)
Number of Hedge Fund Holders: 15
Fisker Inc. (NYSE:FSR) is an American electric vehicle manufacturer, founded in 2016 and headquartered in Manhattan Beach, California. On November 29, Evercore ISI analyst Chris McNally took coverage of Fisker Inc. (NYSE:FSR) with an Outperform rating and a $15 price target.
Fisker Inc. (NYSE:FSR) has attracted strong investments from high-profile investors such as Apollo Global Management. This is a sign that the company has a promising future ahead. Additionally, the company is well-positioned to benefit from the growing demand for electric vehicles. With the increasing focus on reducing emissions and improving air quality, electric vehicles are becoming more popular and Fisker Inc. (NYSE:FSR) is well-positioned to capitalize on this trend and is therefore one of the best electric car stocks to buy now.
At the close of Q3 2022, 15 hedge funds were long Fisker Inc. (NYSE:FSR) and disclosed stakes worth $104.4 million in the company. This is compared to 11 hedge funds in the previous quarter with stakes worth $110.7 million.
9. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 20
XPeng Inc. (NYSE:XPEV) is a Chinese electric vehicle (EV) manufacturer based in Guangzhou, China. It designs, manufactures, and sells smart electric vehicles in China. XPeng Inc. (NYSE:XPEV) has been growing rapidly and is well-positioned to benefit from the global shift to electric vehicles, and especially from a surge in demand from China's EV market. The company has a competitive edge in the Chinese EV market, with its own proprietary software and hardware for Autopilot, and its focus on advanced technology such as artificial intelligence and cloud computing. The stock is placed among the best electric car stocks to invest in.
On November 22, DBS Bank took coverage of XPeng Inc. (NYSE:XPEV) with a Buy rating and a HK$48 price target.
At the end of the third quarter of 2022, Xpeng Inc. (NYSE:XPEV) was spotted on 20 investors' portfolios that held collective stakes of $178.3 million. Of those, Renaissance Technologies was the top investor in the company and disclosed a position worth $75.4 million.
8. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 20
Li Auto Inc. (NASDAQ:LI) is a Chinese manufacturer of electric vehicles. Founded in 2015, the company has quickly become one of the most recognizable names in the electric vehicle industry. On December 1, Li Auto Inc. (NASDAQ:LI) announced that it has delivered 15,034 vehicles in November, up 11.5% year over year. According to the company's balance sheet, Li Auto Inc. (NASDAQ:LI) has free cash flows of CNY 4.33 billion. A strong cash position and rising sales volumes place Li Auto Inc. (NASDAQ:LI) among the best electric car stocks to invest in now.
On November 28, Jefferies analyst Johnson Wan took coverage of Li Auto Inc. (NASDAQ:LI) with a Buy rating and a $20.66 price target.
At the close of Q3 2022, 20 hedge funds were bullish on Li Auto Inc. (NASDAQ:LI). These funds held collective stakes of $1.07 billion in the company. As of September 30, Tiger Global Management LLC is the dominant shareholder in Li Auto Inc. (NASDAQ:LI) and has a stake worth $396 million.
7. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 25
Stellantis N.V. (NYSE:STLA) is a leading automotive company that is involved in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, and production systems worldwide. The company owns a strong portfolio of brands including Alfa Romeo, Chrysler, Dodge, Jeep, and Maserati. Stellantis N.V. (NYSE:STLA) is committed to the green energy transition. The company is targeting that by 2030, battery electric vehicles will account for 100% of vehicle sales in Europe and 50% of vehicle sales in the United States. Stellantis N.V. (NYSE:STLA) is well-positioned to grow its market share in the electric car market due to its size and scale and is therefore one of the best electric car stocks to buy now.
On October 20, Nomura analyst Anindya Das upgraded Stellantis N.V. (NYSE:STLA) to Buy from Neutral and raised his price target to EUR 19.80 from EUR 15.70.
At the end of Q3 2022, 25 hedge funds were long Stellantis N.V. (NYSE:STLA) and disclosed stakes of $905.5 million in the company. This is compared to 25 positions in the preceding quarter with stakes worth $714.6 million. As of September 30, Arrowstreet Capital is the largest investor in the company and has a position worth $349.35 million.
Like Ford Motor Company (NYSE:F), Tesla, Inc. (NASDAQ:TSLA), and General Motors Company (NYSE:GM), Stellantis N.V. (NYSE:STLA) is among the best-in-class companies operating in the EV space.
6. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 26
NIO Inc. (NYSE:NIO) is a Chinese electric vehicle maker that has been rapidly gaining market share in the global EV market. NIO Inc. (NYSE:NIO) offers a wide range of innovative and high-performance vehicles including five, six, and seven-seater electric SUVs, as well as smart electric sedans. NIO Inc. (NYSE:NIO) has a strong developed a proprietary battery swapping technology which allows users to switch out their batteries in minutes, as well as an autonomous driving system. The company's vehicles have state-of-the-art connectivity, self-driving capabilities, and an improved user experience. NIO Inc. (NYSE:NIO) is one of the best electric car stocks to buy now.
On December 2, NIO Inc. (NYSE:NIO) announced that the company delivered 14,178 vehicles in November, up 30.3% year over year. This November, Barclays analyst Jiong Shao revised his price target on NIO Inc. (NYSE:NIO) to $18 from $19 and maintained an Overweight rating on the shares.
At the close of the third quarter of 2022, NIO Inc. (NYSE:NIO) was a part of 26 investors' portfolios. These funds disclosed positions worth $518.9 million in the company. As of September 30, Renaissance Technologies is the largest shareholder in the company and has a position worth $199.99 million.
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Disclosure: None. 15 Best Electric Car Stocks To Buy Now is originally published on Insider Monkey.
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