Best EV Stocks to Buy Straight Away
Electric vehicle (EV) stocks are quite popular as electric cars look to go mainstream, nonetheless, not all are created equal. Usually, companies with strong records of earnings growth and market outperformance that are forming bullish chart patterns are the best candidates for stocks to buy.
However, most of the new EV stocks have neither. They include Canoo, Faraday Future, as well as Fisker.
Electric vehicle makers need time to make money. Lucid Motors is just about to begin deliveries of its Luxury Lucid Air and start bringing in revenue. Another carmaker Rivian has just started deliveries of the R1T, the first electric pickup, with R1S SUV before year-end. The company filed for an IPO.
Meantime, Chinese EV stocks like BYD Co. as well as Li Auto sell tens of thousands of vehicles but are unprofitable for now. Legacy auto giants like General Motors and Ford are also willing to spend millions of dollars on electric vehicles.
As of October 15, these stocks had the best ratings. Most of them are not pure-play EV stocks but are pivoting aggressively to electrification.
Tesla is one of the most famous electric carmakers in the world. Its stock has an IBD Composite Rating of 98 and an EPS Rating of 72. The company predicts 50% average annual growth in vehicle deliveries, with 2021 expected to be faster than that pace. Tesla’s first electric pickup truck, the Cybertruck, is due in late 2022.
GM Stock also earned its spot among the best EV stocks. It has an IBD Composite Rating of 82 as well as an EPS rating of 70. On June 16, the company again hiked its spending on electric and autonomous vehicles to $35 billion through 2025. GM plans to launch 30 new EVs around the world by then. The carmaker plans to launch its Hummer electric vehicle in the near future.
Another carmaker from Michigan also wants to sell more electric vehicles. This spring, Ford hiked spending on electric vehicles to more than $30 billion by 2025. Ford expects 40% of its global sales to be fully electric by 2030. Its stock has a Composite Rating of 92 and an EPS Rating of 65.
The company founded by Henry Ford, who revolutionized the car industry in the previous century, received 150,000 reservations for the F-150 Lighting, its first electric pickup.
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