In this article, we discuss the 10 auto companies that sold the most EVs in 2021.
Electric car sales are making waves across the world as auto firms scramble to shift their focus on traditional fuel-based vehicles to keep up with emerging trends. According to a newly released report by the International Energy Agency, electric car sales in 2021 stood at around 6.6 million, nearly tripling from the 2.2 million EV units sold in 2019 and more than doubling from the 3 million EVs sold in 2020. The sales represented 9% of the global car market in 2021, 4.1% and 2.5% in 2020 and 2019. The IEA estimates that there are now around 16 million EVs on the road globally with China leading other countries by a wide margin in terms of EV adoption.
There were 3.4 million EVs sold in China in 2021, putting the country on track to achieve a target of EVs reaching 20% of total Chinese car market share by 2025. The emergence of new EV models and the extension in government subsidies for the sector due to the pandemic have contributed to the EV boom in the country. In the US and Europe, electric car sales rose by 70% and 100%, respectively. EVs now account for nearly 5% of the car market share in the US. Norway and Germany are the strongest European EV markets.
However, the EV sales numbers from emerging economies like Brazil, India, and Indonesia remain disappointing, accounting for less than 1% of the total market share and not registering a significant increase in 2021. This could change as more car brands, especially in Japan, transition to fully-electric vehicles. Some of the top EV stocks to buy now to take advantage of the boom in the industry include Tesla, Inc. (NASDAQ:TSLA), Stellantis N.V. (NYSE:STLA), and BYD Company Limited (OTC:BYDDF), among others discussed in detail below.
Our Methodology
The companies that manufacture electric vehicles and have sold the most electric vehicles in 2021 were selected for the list. In order to differentiate all-electric vehicles from hybrids, only sales of plug-in cars were considered. The number of vehicles sold is mentioned alongside other details about the firms for further clarity. It is important to mention that the number of EVs sold during a calendar year does not correspond to the number of EV deliveries made or the number of EVs produced by each firm.
Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each company.
Auto Companies that Sold the Most EVs in 2021
10. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 51
Total Number of EVs Sold in 2021: 27,140
Ford Motor Company (NYSE:F) is an automaker based in Michigan. It is one of the favorite auto stocks among hedge funds. At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Ford Motor Company, compared to 55 in the preceding quarter worth $2.1 billion.
Ford Motor Company recently announced that it has started delivering the E-Transit commercial vans across the United States. The company has received over 10,000 orders for these vehicles already and they join a star-studded EV lineup that already includes the F-150 pickup truck and the Mustang Mach-E. Ford Motor Company plans to include more EVs to this lineup in 2022.
Just like Tesla, Inc., Stellantis N.V., and BYD Company Limited, Ford Motor Company is one of the stocks that growth investors are flocking to.
In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on General Motors (GM). In the difficult environment, its most comparable peer, Ford, lost about half its value.”
9. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 10
Total Number of EVs Sold in 2021: 52,749
Toyota Motor Corporation (NYSE:TM) is a Japanese car manufacturer that has operated in the industry since 1933. It is one of the leading car brands in terms of hybrid car sales and recently announced plans to invest $35 billion to transition away from fuel-based vehicles towards plug-in only cars. As part of the plan, Toyota Motor Corporation will roll out 30 new battery-powered vehicles for deliveries across the world by 2030. The firm will also invest in new EV battery technologies.
The hedge fund sentiment around Toyota Motor Corporation does not do justice to the lofty ambitions of the firm in the EV sector. At the end of the third quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $876 million in Toyota Motor Corporation, compared to 12 the preceding quarter worth $903 million.
8. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 30
Total Number of EVs Sold in 2021: 91,429
NIO Inc. (NYSE:NIO) makes and sells smart electric vehicles and is headquartered in China. It is one of the stocks hit as the Chinese government tightens policies around dual-listed firms. However, there has not been a hedge fund exodus from the stock, in contrast to some other Chinese firms. At the end of the third quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $1 billion in NIO Inc., compared to 34 in the preceding quarter worth $2 billion.
NIO Inc. recently announced that it had delivered more than 9,600 vehicles in January, up over 33% year-on-year. The firm has also been improving the power, sales and service network. It recently revealed that it now operated 836 Power Swap stations, 3,766 Power Chargers and 3,656 destination chargers, and 180 authorized service centers. NIO Inc. also recently established an insurance brokerage firm.
In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. was one of them. Here is what the fund said:
“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”
7. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 25
Total Number of EVs Sold in 2021: 98,155
XPeng Inc. (NYSE:XPEV) is another Chinese EV manufacturer that has grabbed the headlines in recent months as EV sales explode in the country. The firm recently reported that it had delivered nearly 13,000 smart EVs in January, up 115% compared to EV deliveries in January 2021. This was the fifth consecutive month that XPeng Inc. had delivered more than 10,000 vehicles, marking a key milestone for the firm.
Hedge funds have also turned increasingly bullish on XPeng Inc. as it delivers solid EV sales. At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $657 million in XPeng Inc., up from 19 in the preceding quarter worth $784 million.
6. Hyundai Motor Company (OTC:HYMTF)
Number of Hedge Fund Holders: N/A
Total Number of EVs Sold in 2021: 161,366
Hyundai Motor Company (OTC:HYMTF) is a South Korea-based automobile manufacturer. On January 6, the company announced that it had signed a deal with Unity Software to build a “Meta-Factory”, a “metaverse” themed project that will utilize smart manufacturing, artificial intelligence training, and autonomous driving simulation to allow Hyundai Motor Company to “test” a factory virtually to optimize operations and solve problems without physically visiting the site.
Hyundai Motor Company recently announced that the sales of retail units in the United States had climbed to 47,872 in January, an increase of 10% year-on-year. During this time, the sales of eco-friendly retail units increased a whopping 312% year-on-year. Some of the units that broke sales records included Venue, Tucson, Palisade, and the Ioniq.
In addition to Tesla, Inc., Stellantis N.V., and BYD Company Limited, Hyundai Motor Company is one of the EV stocks that elite investors are buying.
5. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 24
Total Number of EVs Sold in 2021: 216,562
Stellantis N.V. is a Netherlands-based automobile manufacturer. The company has come under the spotlight in recent weeks after announcing that it would be partnering with tech giant Amazon for automobile software. Already one of the largest EV-sellers in the world, the partnership with one of the biggest tech firms, which includes vehicle development, building connected in-vehicle experiences, and training automotive software engineers, will advance a plan of Stellantis N.V. to shift focus away from just cars to mobility tech.
Amazon will also be a customer of the new Stellantis N.V. vehicles launching in 2023.
At the end of the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Stellantis N.V., compared to 28 in the previous quarter worth $844 million.
4. BYD Company Limited (OTC:BYDDF)
Number of Hedge Fund Holders: 2
Total Number of EVs Sold in 2021: 323,143
BYD Company Limited is a firm that makes and sells automobiles. It operates from China. Warren Buffett, one of the most legendary investors on Wall Street, has backed the firm as an EV play over the past few years. In January, BYD Company Limited had announced that it had delivered over 603,783 new energy vehicles in 2021, up more than 218% year-on year. The sale of fuel-based vehicles for December declined 81% year-on-year.
BYD Company Limited has started attracting the interest of hedge funds in the US as it becomes one of the top EV firms in the world. At the end of the third quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $22 million in BYD Company Limited.
3. Volkswagen AG (OTC:VWAGY)
Number of Hedge Fund Holders: N/A
Total Number of EVs Sold in 2021: 451,131
Volkswagen AG (OTC:VWAGY) is a German car manufacturer. In early December, Deutsche Bank analyst Tim Rokossa maintained a Buy rating on the stock with a price target of EUR 210. Volkswagen AG recently announced that the Lamborghini brand, one of the most iconic car brands in the world, would release four new models this year that would be the last fuel-only models. Starting 2023, these cars would go hybrid and then fully electric.
On December 9, Volkswagen AG had announced that a new $395 million investment plan by the firm to develop new tech and energy efficient cars would also include a push to expand into new markets with electric trucks and buses. Roberto Cortes, the head of the commercial vehicle segment of Volkswagen AG, expects bus sales to pick up in 2022 after a slow 2021.
2. SAIC Motor Corporation Limited (SSE:600104.SS)
Number of Hedge Fund Holders: N/A
Total Number of EVs Sold in 2021: 609,730
SAIC Motor Corporation Limited (SSE:600104.SS) is a Chinese electric vehicle manufacturer that produces some of the best budget EVs in the world. One of the best-selling models of the firm is the Hong Guang Mini, a four-seat EV that has a top speed of just 62mph and costs less than $4,500. The company is state-owned and has been registering almost double the amount of EV sales than Tesla in China. It is also expanding into developing markets where the sale of budget EVs is on the rise.
SAIC Motor Corporation Limited (SSE:600104.SS) trades on Chinese exchanges but represents an exciting entry point into the EV sector. The sales of SAIC Motor Corporation Limited (SSE:600104.SS) EVs could soon tip the sales of Tesla Model 3, the best-selling EV in the world, although their reach outside China is still somewhat limited.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Total Number of EVs Sold in 2021: 936,172
Tesla, Inc. is the California-based EV maker led by Elon Musk. It is the largest EV maker in the world and briefly crossed $1 trillion in market capitalization last year before a broad correction in the value of growth stocks hit the firm as well. Morgan Stanley analyst Adam Jonas recently maintained an Overweight rating on the stock with a price target of $1,300, noting that the sales of EVs by the firm could soon top the sales of cars by General Motors and Ford combined by 2027.
Elite hedge funds back Tesla, Inc. as it goes from strength to strength. At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc., the same as in the previous quarter worth $9 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
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This article is originally published at Insider Monkey.
