For more than a century, the fossil fuel industry not only dominated the discussion of automobile transportation, it was also the only topic available. But in recent years, the auto industry has undergone a rethink thanks to Tesla (NASDAQ: TSLA). Proving that electric vehicles (EVs) are not just a flashy science project, but a commercially viable product, sent TSLA’s valuation into the stratosphere. Investors should learn about electric vehicle stocks as the EV market begins to keep pace with gasoline-powered vehicles, the public listens, and EV manufacturers slowly gain prominence.
Entire sectors are now turning to EVs, creating a massive race for supremacy. This dynamic can create an attractive and profitable environment for the best electric vehicle stocks.
Take a quick look at the best electric vehicle stocks:
- ford
- Toyota
- volks wagon
- Charge Point Holdings Co., Ltd.
- flashing charging
- BYD Co., Ltd.
Overview: Electric Vehicle Stocks
When most people hear the word “electric car,” they instinctively think of Tesla. Arguably, this technology and EV manufacturing companies brought this concept into the mainstream with a combination of sleek sedans and SUVs that consumers greedily purchased. But you might be surprised to learn that EVs date back centuries. However, the concept of charging stations is a bit more recent. So how can you get out of the gas station, invest in companies that enjoy tax credits, and buy the ground floor of automakers that are changing the face of the industry?
In fact, the history of Porsche, one of the world’s most respected performance car brands, began with electric motors. In 1898, Ferdinand his Porsche designed a rudimentary EV with a top speed of 25 kilometers per hour (about 15.5 miles per hour). Ferdinand went on to design his first Volkswagen (a car for the people), but what his EV charging would look like today, home charging options, and how huge the car market would become. I couldn’t imagine it.
Despite these early experiments, nothing could match the energy density offered by fossil fuels. Although incredibly dirty, one gallon of gasoline can reliably fuel your car for many miles (often up to the level determined by the manufacturer and printed on the dealer’s sticker). This number caused a huge problem among motorists and led many to buy gasoline. Rates vehicles based solely on fuel economy estimates. Additionally, drivers found it easier and faster to refuel their car than to charge their EV. In fact, charging networks could make it even easier to charge your car’s battery for road trips, daily commutes, and more.
In the decades since then, energy density advantages have prevented non-fossil fuel alternatives from challenging combustion-based vehicles. However, advances in lithium-ion battery technology have made EVs more practical and taken market share from combustion vehicles. Auto stocks are all likely to rise to some degree as the market capitalization of many of these companies increases.
Although tough challenges remain, many auto experts believe EVs are the future of transportation, leading to potential opportunities for electric vehicle stocks. So which car stocks are best for someone looking to diversify in both the energy and auto industries? In the auto industry, Polestar 2, Nissan Leaf, Chevrolet Silverado EV, Tesla Model S, and Chevrolet Volt. Several options are available for diversification, including EVs. This means you have exposure to the automotive industry through multiple manufacturers.
Best Online Brokers for Electric Vehicle Stocks
Thanks to the ever-increasing popularity of EVs, you can technically acquire electric vehicle stocks using any broker. That said, if you’re really interested in this space, you should consider platforms that offer favorable terms for over-the-counter (OTC) stocks and special acquisition purpose companies (SPACs).
why? Mainly, increased competition will encourage foreign automakers to research and develop their own EVs. Ford Motor Company and General Motors are developing EVs that often outperform, say, Rivian stock. Many of these companies list their shares on the over-the-counter market, so you should consider a brokerage that facilitates such transactions with minimal fees.
Additionally, new EV competitors are increasingly choosing SPACs as their vehicle for going public. To get in on the ground floor with companies like this, you need to research suitable platforms for SPACs. Below is a list of brokers to consider. Remember, when you move beyond the internal combustion engine, you see a whole new side of the automotive industry. This also means that you need to choose a broker that makes you feel comfortable and helps you properly enter the automotive sector.
Characteristics to look out for in electric vehicle stocks
- Featured products: Ask any consumer car expert and they will almost always advise potential buyers to consider basic characteristics such as reliability, cost of ownership, and overall quality. But at the end of the day, humans are instinctual creatures. Backed by research and common sense, many people make purchasing decisions based on a car’s aesthetics. Therefore, it is important that your core product is unique and resonates with your consumer base.
- Viable business plan: As the recent volatility in the EV sector has shown, EV stocks are not for the faint of heart. In some cases, EV companies may be ambitious but do not have the earnings per share or revenue to justify the valuation. Even Tesla would sell its vehicles at a loss if the company removed its regulatory credit sales. Therefore, if you want to venture into this market, you should do so based on a solid business plan.
- leadership: Competing in the EV space is probably one of the most difficult situations. First, there is Tesla’s advantage. Second, EVs still only make up a small portion of global car sales, creating a major hurdle in convincing the rest of the world to switch to electric vehicles. It can happen, but it will require strong leadership.
An exciting opportunity for patient gamblers
When Ferdinand Porsche developed the electric motor, many in the auto industry envisioned electricity ruling the roads. Even in the late 1990sth Until early 20sth In the century, loud noise and pollution from combustion-based engines bothered onlookers. However, at the time, the technology to produce commercially attractive electric vehicles did not exist.
Fast forward to today and the paradigm has completely shifted. That’s not to say that EV manufacturers don’t have challenges ahead. But the opportunity is even greater, making it an exciting time to benefit from a long-standing catalyst.
FAQ
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Electric vehicles are the future, so electric vehicle stocks are considered a good investment.
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It’s probably a good investment, as many cities will require electric cars in the future.
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Benzinga provides a list of the best electric vehicle stocks above.
Disclosure: The author has a short position in TSLA and a long position in F at the time of writing.