In this article we discuss the 5 Best EV Stocks to Buy According to Cathie Wood. ARK Investment’s Cathie Wood recently talked at length about her investment ideas and major themes for 2021 in an interview. To read the summary of that interview, ARK Investments sterling performance and our analysis of Cathie Wood’s investment strategy, go directly to 10 Best EV Stocks to Buy According to Cathie Wood.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best EV stocks to buy:
5. BYD Company Limited (OTCMKTS: BYDDF)
BYD Company is a China-based automobile manufacturer. It also produces battery-powered bicycles, buses, solar panels, trucks and rechargeable batteries. BYD Company Limited currently has a $111.6 billion market capitalization. For the past 12 months, the company was able to deliver a massive 506.90% return and settled at $34.22 at the closing of February 12th.
Cathie Wood said that BYD Company is a part of their ‘more specialized strategies.’ ARK Investment currently owns 864, 427 shares of BYD, worth $45.6 million. BYD occupies 0.12% of ARK’s overall equity.
4. NXP Semiconductors N.V. (NASDAQ: NXPI)
NXP Semiconductors makes applications and services for electric vehicles. NXP currently has a $54.6 billion market capitalization. For the past 12 months, the company was able to deliver a decent 42.57% return and settled at $194.39 at the closing of February 12th.
ARK Investment Management invested $51.93 million in NXP Semiconductors, buying 326,634 of shares.
3. Baidu, Inc. (NASDAQ: BIDU)
Baidu Inc. makes software and applications for EVs. The company recently announced that they plan to establish an intelligent EV company and structured a strategic partnership with the car manufacturer Geely Automobile. Baidu Inc. currently has a $111.2 billion market capitalization. It delivered a spectacular 142.40% return in the past 12 months and was able to settle at $313 per share at the closing of February 12th.
Wood’s ARK Investment owns 2,260,776 Baidu shares that amount to $488.87 million. It is equivalent to 1.3% of ARK’s total equity. Here is what Cathie Wood has to say about Baidu, Inc:
“If I had to give you which of the Chinese names we have the highest conviction in, it’s probably Baidu, and that had been a hard sell for me because their research business was falling apart.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM)
Taiwan Semiconductor Manufacturing Company Limited supplies semiconductors for electric vehicles. The company currently has a $593.8 billion market capitalization. For the past 12 months, TSM was able to deliver a 140.68% return and settled at $138.06 per share at the closing of February 12th.
ARK Investment holds 4,507,394 shares of TSM, worth $491.48 million.
1. Tesla, Inc. (NASDAQ: TSLA)
Tesla is the best EV stock to buy now according to Cathie Wood. Tesla is up about 333% over the last 12 months. Tesla currently has a $783.3 billion market capitalization. For the past 3 months, it delivered a decent 51.29% return and settled at $816.12 per share at the closing of February 12th.
ARK Investment Management is one of the biggest stakeholders of Tesla. The fund owns $2.9 billion worth of shares of the company. Tesla accounts for about 7.76% of ARK’s total portfolio.
Cathie Wood projects that Tesla will be leading the transition from internal combustion engine to electric vehicles. Here is what she stated in her interview:
“Who is going to be leading the charge? We still think it is Tesla, Inc. (NASDAQ: TSLA) certainly in the United States, even in China, Tesla is the number one brand.”
You can also take a peek at 10 Biggest Companies Competing With Netflix and 15 Fastest Growing Franchises.
