The preferred stocks for a stock market investment associated with electric cars.
What are the best stocks to invest in the electric car sector?
Money.it has collected the most interesting and performing stocks to keep under the microscope for those who want to focus on sustainable mobility and on the business that is radically revolutionizing the automotive sector.
Investing in electric cars was once considered an attractive addition to your investment portfolio.
According to the International Energy Agency, sales of electric cars – including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) – topped 10 million in 2022, growing by 55% compared to 2021.
However, demand for electric vehicles continues to decelerate despite continued price cuts. Manufacturers are withdrawing from the race to electric cars as hybrids gain market share.
In this context, which are the titles related to electric cars to prefer?
Best stocks for investing in electric cars
The electric vehicle sector is seeing attractive growth, albeit below expectations, driven by the West’s commitment to reducing carbon emissions and technological advances on the battery front. And consumers are increasingly moving towards sustainable transportation options.
For these reasons, the electric car market can represent an investment opportunity to be taken into consideration, after a careful analysis of its prospects.
To take advantage of this thriving market it is necessary to identify which are the best stocks related to electric cars.
The selection requires an in-depth evaluation based on several criteria: from technological innovation to market share, from growth potential in new geographical areas to quarterly performance, as well as any strategic partnerships. Government policies supporting the adoption of electric cars also play a significant role in shaping the industry landscape.
Here are the best electric car stocks to consider:
- Tesla (TSLA): Tesla’s pioneering role in the electric vehicle industry cannot be overstated. With a strong market presence, continuous innovation, and good quarterly results, Tesla remains the preferred choice for investors who want to focus on the sector. Its expansion on the global scene and diversification on the battery front further strengthen its leading position in the market. But make no mistake: Tesla shares are down 31.55% over the past year; CEO Elon Musk has spoken of a moderate growth outlook for the company.
- NIO (NIO): Known as the “Tesla of China”, NIO has made great strides in the electric vehicle market in China. Its focus on luxury electric SUVs, innovative powertrain technology, and cross-border expansion plans make this company’s stock potentially attractive.
- Rivian (RIVN): Specializing in electric trucks and SUVs, this company targets a niche but growing segment of the electric vehicle market. Despite being relatively new to the industry, its strategic partnerships with companies such as Amazon to supply electric vans highlight its growth potential.
- Lucid Motors (LCID): Targets the luxury segment of the electric vehicle market, emphasizing advanced technology and performance. The Lucid Air model has garnered industry enthusiasm for its autonomy and speed. The foundations for playing a significant role in the market are all there.
Not just electric car manufacturers: other stocks to monitor
The shares linked to electric cars - known in the sector by the English abbreviation EV stocks - range including not only the securities of the producers of electric vehicles but also those of the producers of electric batteries and the companies that build stations charging and electric motors. In a broader sense, electric car-related stocks can also include companies that extract raw materials and semiconductor companies that produce key components for electric vehicles.
Here’s a selection of companies related to the electric car sector based on their performance on the stock market over the last year.
| Ticker | Company | Annual performance |
|---|---|---|
| NVDA | NVIDIA Corp | 249.39% |
| AMD | Advanced Micro Devices Inc. | 78.79% |
| SCCO | Southern Copper Corporation | 44.50% |
| GOOG | Alphabet Inc | 44.26% |
| LI | Li Auto Inc ADR | 31.41% |
| ALV | Autoliv Inc. | 12.38% |
| GNTX | Gentex Corp. | 11.88% |
| NXPI | NXP Semiconductors NV | 10.47% |
Data updated as of 03/25/2024 12.30 pm
|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to public savings.|
Original article published on Money.it Italy 2024-03-25 16:13:03. Original title: Le azioni migliori per investire nelle auto elettriche
