In this article, we will discuss the 15 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. announced that it has paid down $13 million of its debt, effectively bringing its current debt down to below $10 million. Mullen Automotive, Inc. 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. 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. 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. 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, Tesla, Inc., and General Motors Company.
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 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 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 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. 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. is one of the best electric car stocks to buy now.
On September 15, Stifel analyst J. Bruce Chan took coverage of Canoo Inc. with a Buy rating and a $4 price target. On November 21 Tony Aquila, CEO of Canoo Inc. 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. 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 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 is placed on our list of the best electric car stocks to buy now.
On November 11, Polestar Automotive Holding UK PLC 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 has cash and cash equivalents of $988.26 million.
Wall Street is bullish on Polestar Automotive Holding UK PLC. On November 16, Citi analyst Itay Michaeli reinstated coverage of Polestar Automotive Holding UK PLC with a Buy rating and a $12 price target.
At the end of Q3 2022, Polestar Automotive Holding UK PLC 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. and disclosed positions worth $99.5 million.
On November 8, Lucid Group, Inc. 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. to $17 from $19 and reiterated a Buy rating on the shares.
As of December 7, Lucid Group, Inc. 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. 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. 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. 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. is a Chinese electric vehicle (EV) manufacturer based in Guangzhou, China. It designs, manufactures, and sells smart electric vehicles in China. XPeng Inc. 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. with a Buy rating and a HK$48 price target.
At the end of the third quarter of 2022, Xpeng Inc. 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. 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. has free cash flows of CNY 4.33 billion. A strong cash position and rising sales volumes place Li Auto Inc. among the best electric car stocks to invest in now.
On November 28, Jefferies analyst Johnson Wan took coverage of Li Auto Inc. 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.. 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. 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. 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. 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. 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. 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, Tesla, Inc., and General Motors Company, Stellantis N.V. 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. is a Chinese electric vehicle maker that has been rapidly gaining market share in the global EV market. NIO Inc. 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. 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. is one of the best electric car stocks to buy now.
On December 2, NIO Inc. 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. to $18 from $19 and maintained an Overweight rating on the shares.
At the close of the third quarter of 2022, NIO Inc. 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.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 30
Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the most promising electric vehicle companies in the world and is poised to disrupt the traditional automotive industry. The company has some of the most advanced EV technologies in the industry and its electric pickup trucks, the R1T and R1S, are among the most next-gen battery-electric trucks on the market. Rivian Automotive, Inc. is ranked high among the best electric car stocks to buy now.
On November 9, Rivian Automotive, Inc. posted earnings for the third quarter of fiscal 2022, in which the company beat EPS estimates by $0.26. The company’s revenue for the quarter amounted to $536 million, up 53,500% year over year.
On November 29, Evercore ISI analyst Chris McNally took coverage of Rivian Automotive, Inc. with an In Line rating and a $35 price target.
At the end of Q3 2022, 30 hedge funds held stakes in Rivian Automotive, Inc. worth $1.96 billion. This is compared to 35 positions in the previous quarter with stakes worth $1.59 billion. As of September 30, Coatue Management is the top investor in the company and has a stake worth $644.95 million.
Here is what Baron Funds had to say about Rivian Automotive, Inc. in its third-quarter 2022 investor letter:
“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles (EVs). Shares of Rivian were up 28% in the third quarter driven by second quarter production that beat expectations, a new partnership with Mercedes Benz, and the positive potential impact of the recently announced Inflation Reduction Act on accelerating broader EV adoption. While Rivian continues to be impacted by supply-chain issues that are causing delays in its production ramp, it is addressing the challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch R2 in 2025). The company also recently reported stronger than-expected third quarter production results while reiterating its annual guidance of producing 25,000 units. As semiconductor shortages ease, we believe the company will be able to rapidly ramp its production. While we retain conviction in the shares given the company’s vision, product positioning, relationship with Amazon.com, and strong balance sheet, we have reduced the size of our position.”
4. Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 31
Ferrari N.V. (NYSE:RACE) has one of the most recognizable brands in the world, with a strong heritage of performance and luxury. The company has consistently launched successful products, from the LaFerrari supercar to its F8 Tributo. Ferrari N.V. has increased its revenue and profits steadily over the last few years, and the company has a strong balance sheet with ample cash. Ferrari N.V. has free cash flows of over EUR 601 million. The company is investing heavily in research and development to develop new technologies, such as hybrid powertrains and autonomous driving. The company is on track to launch its first all-electric car by 2025, and given its rich history of leadership, Ferrari N.V. is expected to remain at the forefront of the electric car industry. The stock is ranked among the best electric car stocks to buy now.
Wall Street is bullish on Ferrari N.V.. On October 27, HSBC analyst Edoardo Spina upgraded the stock to Buy from Hold.
At the close of Q3 2022, 31 hedge funds were long Ferrari N.V. and disclosed positions worth $1.02 billion. This is compared to 33 positions in the preceding quarter with stakes worth $870.3 million. As of September 30, Darsana Capital Partners is the dominant shareholder in the company and has stakes worth $231.25 million.
3. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 47
America’s iconic carmaker, Ford Motor Company is among the best electric car stocks to buy now. Ford Motor Company has invested significantly in mobility services, and electric vehicles. These investments position the company to benefit from the growing trend of technology-driven transportation solutions. Some of the company’s most popular electric vehicles include the Mustang Mach–E and the award-winning F–150 Lightning.
Ford Motor Company has a strong cash position and is currently trading at bargain levels. As of December 7, the stock has a trailing twelve-month PE ratio of 5.85. The company has free cash flows of over $2.6 billion. On November 30, Citi analyst Itay Michaeli raised his price target on Ford Motor Company to $14 from $13 and maintained a Neutral rating on the shares.
At the end of the third quarter of 2022, 47 hedge funds were bullish on Ford Motor Company and disclosed stakes of $1.18 billion. This is compared to 46 positions in the previous quarter with stakes worth $608.7 million. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the top investor in the company and has a position worth $503.6 million.
Here is what Leaven Partners had to say about Ford Motor Company in its third-quarter 2022 investor letter:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 74
General Motors Company is another leading automaker that is making strides in the electric vehicle industry. The company has poured hefty investments into the development of electric vehicles which has resulted in the release of several successful models including the GMC Hummer EV, Cadillac LYRIQ, and the Chevrolet Bolt EV. General Motors Company is well-positioned to benefit from the secular growth trends in the electric vehicle industry and is ranked high among the best electric car stocks to buy now.
On October 25, General Motors Company posted strong earnings for the fiscal third quarter of 2022. The company reported an EPS of $2.25 and outperformed consensus by $0.37. The company’s revenue for the quarter amounted to $41.89 billion, up 56.42% year over year. Shortly after the company’s earnings release, JPMorgan analyst Ryan Brinkman raised his price target on General Motors Company to $59 from $58 and remained Overweight on the shares.
At the close of the third quarter of 2022, 74 hedge funds were eager on General Motors Company and held stakes worth $3.32 billion. This is compared to 75 positions in the previous quarter with stakes worth $3.44 billion. As of September 30, Berkshire Hathaway is the largest shareholder in General Motors Company and has stakes worth $1.60 billion in the company.
Here is what Diamond Hill Capital had to say about General Motors Company in its third-quarter 2022 investor letter:
“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us an attractive entry point to a name we know well.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 88
While many competitors have emerged in recent years, Tesla, Inc. is among the most dominant electric car companies in the world. The company is a pioneer in the space and has a first-mover advantage. Moreover, Tesla, Inc. has an impressive range of vehicles that appeal to a wide range of consumers and the company is rapidly expanding its presence in the market. Tesla, Inc. has also established a strong presence in the self-driving car industry with its Autopilot technology. Tesla, Inc. is a clear leader in the electric vehicle market and is placed on our list of the best electric car stocks to buy now.
On November 23, Citi analyst Itay Michaeli raised his price target on Tesla, Inc. to Neutral from Sell and raised his price target to $176 from $141.33. This December, Piper Sandler analyst Alexander Potter reiterated an Overweight rating and his $340 price target on Tesla, Inc..
At the end of Q3 2022, 88 hedge funds disclosed stakes in Tesla, Inc.. The total value of these stakes amounted to $7.39 billion, up from $7.17 billion in the previous quarter with 73 positions. The hedge fund sentiment for the stock is positive. As of September 30, ARK Investment Management is the most prominent investor in the company and has a position worth $1.08 billion.
Here is what Alger Capital had to say about Tesla, Inc. in its third-quarter 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares outperformed during the quarter despite covid 19 shutdowns at the company’s shanghai production plant early in the period. During this quarter, the company also ramped up production at its newer Germany and Texas plants. While investors were aware of these challenging variables, the company’s quarterly results exceeded expectations thanks to lower-than-expected operating expenses. Investors are aware that ramping up electric vehicle production is challenging and recognize it’s difficult to estimate production rates.”
You can also take a look at 12 Very High Yield Dividend Stocks To Buy and 10 Best Undervalued UK Stocks To Buy Now.
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This article is originally published at Insider Monkey.
