In this article we will take a look at the 15 best electric car stocks to buy now. You can skip our detailed analysis of the EVs industry’s outlook for 2021, and go directly to the 5 Best Electric Car Stocks to Buy Now.
There is hardly any doubt that in a few decades, at least in the developed world, seeing electric cars on the roads would be commonplace and conventional cars that burn fuel would be eventually retired all over the world. Governments and companies around the world are pouring billions into the EV space amid worsening climate conditions.
According to a report by Markets and Markets, the global market of EVs is expected to grow at a CAGR of 26.8%, reaching over 34,756 units by 2030. In 2020, Europe replaced China as the biggest market of EVs. Europe registered over 1.4 million new electric cars in 2020, followed by China with 1.2 million. Overall, global electric car sales rose in 2020, despite the pandemic-related restrictions. In the U.S., consumers spent over $120 billion on electric car purchases in 2020, presenting a 50% growth from 2019.
According to International Energy Agency, the global sales of electric cars reached 3.2 million in 2020, presenting a 4% market share. This growth was massively driven by zero-emission policy support, especially in Europe. In the U.S. and China, some of the biggest EV companies drafted the policies of going carbon-neutral following the Paris Climate Agreement. Earlier this year, General Motors Company (NYSE: GM) announced its partnership with other automakers to produce and sell only zero-emission vehicles by 2035. Similarly, Ford Motor Company (NYSE: F) has also announced that all vehicles sold in Europe will be electric by 2030. According to the investment bank UBS, electric cars will account for 20% of the gross car sales by 2025, which would certainly reach 40% by 2030.
As mentioned before, China and Europe tend to be the biggest markets of EVs. China is home to some of the biggest EVs companies, such as XPeng Inc. (NYSE: XPEV), Li Auto Inc. (NASDAQ: LI), and NIO Inc. (NYSE: NIO). These companies are tough rivals of the American EV giant, Tesla, Inc. (NASDAQ: TSLA). NIO Inc. (NYSE: NIO) is a pioneer in China’s electric vehicle market. In July 2021, these Chinese companies posted record sales of electric cars. Li Auto Inc. (NASDAQ: LI) sold over 8,589 cars in July, showing a 251% year-over-year growth. Similarly, XPeng Inc. (NYSE: XPEV) also managed to deliver more than 8,000 cars in the same month.
Not only this, but some of the biggest American companies also reported strong electric car sales in China. In the second quarter of 2021, General Motors Company (NYSE: GM) saw a 5.2% sales growth in China, delivering more than 750,000 vehicles. Tesla, Inc. (NASDAQ: TSLA) sales in China reached $6.6 billion in 2020, representing one-fifth of the company’s gross sales. Moreover, in the first quarter of 2021, the revenue of Aptiv PLC (NYSE: APTV) grew by 94% in China, presenting a 72% increase in vehicle production. The global vehicle production of Aptiv PLC (NYSE: APTV) grew by 5%.
With this context, let’s analyze the list of the best electric car stocks to buy now. We took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.
Why pay attention to the hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29, 2021, our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Best Electric Car Stocks to Buy Now
15. Arcimoto, Inc. (NASDAQ: FUV)
Number of Hedge Fund Holders: 5
Arcimoto, Inc. (NASDAQ: FUV) is an American automaker that manufactures affordable and ultra-efficient EVs. The company mainly specializes in Fun Utility Vehicles or FUVs and also sells van variations that can be used for emergencies. Arcimoto, Inc. (NASDAQ: FUV) was founded in 2007 and is headquartered in Oregon, U.S.
In Q1 2021, Arcimoto, Inc. (NASDAQ: FUV) manufactured over 84 vehicles and plans to expand its production in 2021. The consolidated revenue presented a 126% year-over-year growth at $1.39 million. The company recently debuted its first production Roadsters and demonstrated the driverless FUV. In the past year, Arcimoto, Inc. (NASDAQ: FUV) has delivered a 179.2% return to shareholders. In May, Aegis Capital Corp. lifted its price target on Arcimoto, Inc. (NASDAQ: FUV) to $19, with a ‘Buy’ rating on the shares.
As of Q1 2021, 5 hedge funds tracked by Insider Monkey have positions in Arcimoto, Inc. (NASDAQ: FUV), worth $11.4 million.
14. Lordstown Motors Corp. (NASDAQ: RIDE)
Number of Hedge Fund Holders: 12
Lordstown Motors Corp. (NASDAQ: RIDE) is an American automaker that builds electric pickup trucks and other EVs. The company is regarded as the leading all-electric commercial pickup globally. It was founded in 2019 with the purpose of manufacturing light-duty electric trucks. Lordstown Motors Corp. (NASDAQ: RIDE) is headquartered in Ohio, U.S.
In Q1 2021, Lordstown Motors Corp. (NASDAQ: RIDE) reported EPS of -$0.72 versus estimates of -$0.28. The company announced the completed construction of 48 beta vehicles out of 57. It owns a 6.2 million square foot Lordstown Assembly Plant where the company plans to build an all-electric pickup truck designed to serve the commercial fleet market. Lordstown Motors Corp. (NASDAQ: RIDE) has produced over 16 million vehicles in this plant previously. In July, BofA rated Lordstown Motors Corp. (NASDAQ: RIDE) as ‘Neutral’, with an $11 price target.
As of Q1 2021, 12 hedge funds tracked by Insider Monkey have positions in Lordstown Motors Corp. (NASDAQ: RIDE), worth over $27.2 million.
Like General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), Aptiv PLC (NYSE: APTV), Tesla, Inc. (NASDAQ: TSLA), Magna International Inc. (NYSE: MGA), Fisker Inc. (NYSE: FSR), and XPeng Inc. (NYSE: XPEV), Lordstown Motors Corp. (NASDAQ: RIDE) is one of the best electric car stocks to buy now.
13. Blink Charging Co. (NASDAQ: BLNK)
Number of Hedge Fund Holders: 12
Blink Charging Co. (NASDAQ: BLNK) is a network of electric vehicle charging stations, developed to meet the growing needs of EV drivers. The company provides EV charging equipment in order to make electric vehicle charging accessible. Blink Charging Co. (NASDAQ: BLNK) was founded in 1989 and is headquartered in Florida, U.S.
In Q1 2021, Blink Charging Co. (NASDAQ: BLNK) generated revenue of $2.23 million, up from $1.2 million in the same quarter last year, presenting a 72% year-over-year growth. Product sales accounted for $1.7 million of the gross revenue and showed a 113% growth from the prior-year quarter. In the first quarter, Blink Charging Co. (NASDAQ: BLNK) deployed approximately 1,600 commercial and residential EV charging stations. The BLNK stock has delivered a 203% return to shareholders in the past year. In May, Needham initiated its coverage on Blink Charging Co. (NASDAQ: BLNK) with a ‘Buy’ rating and a $39 price target.
As of Q1 2021, 12 hedge funds tracked by Insider Monkey have positions in Blink Charging Co. (NASDAQ: BLNK), up from 11 in the previous quarter. The total value of these stakes is $40.8 million.
Like General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), Aptiv PLC (NYSE: APTV), Tesla, Inc. (NASDAQ: TSLA), Magna International Inc. (NYSE: MGA), Fisker Inc. (NYSE: FSR), and XPeng Inc. (NYSE: XPEV), Blink Charging Co. (NASDAQ: BLNK) is one of the best electric car stocks to buy now.
12. Canoo Inc. (NASDAQ: GOEV)
Number of Hedge Fund Holders: 16
Canoo Inc. (NASDAQ: GOEV) is an American manufacturing company that produces electric vehicles. The company was founded in 2017 and can still be considered a start-up with over 300 employees. Canoo Inc. (NASDAQ: GOEV) is launching a purpose-built pickup truck in 2023 and has already developed a modular electric platform, which would provide maximum vehicle interior space, supporting a number of consumers.
In Q1 2021, Canoo Inc. (NASDAQ: GOEV) reported EPS of -$0.43, compared with estimates of -$0.23. As of March 2021, the company has cash and cash equivalents of $642 million. R.F. Lafferty praised the company’s till date performance during Canoo’s Investor Relation Day in June. Jaime Perez, an analyst, appreciated the company’s new manufacturing partnership with VDL Nedcar and asserted that Canoo Inc. (NASDAQ: GOEV) is ahead of other EV startups. The firm rated Canoo Inc. (NASDAQ: GOEV) as a ‘Buy’, with an $18 price target.
As of Q1 2021, 16 hedge funds tracked by Insider Monkey have positions in Canoo Inc. (NASDAQ: GOEV), compared with 17 in the previous quarter. The total value of these stakes is over $14.8 million.
11. Li Auto Inc. (NASDAQ: LI)
Number of Hedge Fund Holders:18
Li Auto Inc. (NASDAQ: LI) is an electric vehicle manufacturer based in Beijing, China. The company’s electric SUV, Li ONE, was released in May 2021 and plans to expand its product line by developing new electric vehicles in the future. As of March 2021, Li Auto Inc. (NASDAQ: LI) has 65 stores in over 49 cities.
In Q1 2021, Li Auto Inc. (NASDAQ: LI) generated $545.7 million in revenue, presenting an 802% from the previous year’s quarter. The company delivered 12,579 vehicles, presenting a 334.4% year-over-year growth. The vehicle sales accounted for $528.7 million of the gross revenue. Recently, Li Auto Inc. (NASDAQ: LI) has announced its plans to raise approximately $1.93 billion in a Hong Kong listing. The LI stock has soared by 95.08% in the past year and 3.8% in the past six months. In July, Goldman Sachs raised its price target on Li Auto Inc. (NASDAQ: LI) to $62, with a ‘Buy’ rating on the shares.
As of Q1 2021, 18 hedge funds tracked by Insider Monkey have positions in Li Auto Inc. (NASDAQ: LI), worth $493.8 million.
Like General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), Aptiv PLC (NYSE: APTV), Tesla, Inc. (NASDAQ: TSLA), Magna International Inc. (NYSE: MGA), Fisker Inc. (NYSE: FSR), and XPeng Inc. (NYSE: XPEV), Li Auto Inc. (NASDAQ: LI) is one of the best electric car stocks to buy now.
10. Lucid Group, Inc. (NASDAQ: LCID)
Number of Hedge Fund Holders: N/A
Lucid Group, Inc. (NASDAQ: LCID) is an American automotive company that manufactures electric vehicles and also deals in energy storage. The company went public with Churchill Capital Corp. in July via a SPAC merger. Lucid Group, Inc. (NASDAQ: LCID) raised $4.4 billion which would be used to increase the manufacturing capacity of the company.
In a press release, Lucid Group, Inc. (NASDAQ: LCID) announced that the company’s luxury electric car, Lucid Air, has over 11,000 paid reservations, which would be delivered in the second half of 2021. The luxury car has a range of over 500 miles on a single charge. Lucid Group, Inc. (NASDAQ: LCID) expects to generate more than $1 billion through the sales of this electric car. The company also expects to increase its manufacturing capacity from 34,000 units to 365,000 units in the coming years.
With 17,441 shares, worth $503k, Trellus Management Company is the biggest shareholder of Lucid Group, Inc. (NASDAQ: LCID).
9. XPeng Inc. (NYSE: XPEV)
Number of Hedge Fund Holders: 19
XPeng Inc. (NYSE: XPEV) is a Chinese automotive company that specializes in transforming electric vehicles with technology and data. It is one of the leading electric vehicle companies in China that works with advanced internet and AI integration. XPeng Inc. (NYSE: XPEV) was founded in 2014 and is headquartered in Guangzhou, China.
In Q1 2021, XPeng Inc. (NYSE: XPEV) recorded a revenue of RMB 2.9 billion, presenting a 616% year-over-year increase. The EPS beat the market consensus by $0.07 at -$0.13. In July, the company saw a 228% year-over-year growth in smart EVs, reaching 8,040. Moreover, the P7 deliveries reached 40,612 in July. In Q3 2021, XPeng Inc. (NYSE: XPEV) plans to launch the P5 due to increased customer demand. In the past year, XPeng Inc. (NYSE: XPEV) has delivered a 99.2% return to shareholders. In July, Citigroup praised the company’s growth in June shipments, which were 5% greater than the consensus. The investment bank raised its price target on XPeng Inc. (NYSE: XPEV) to $56.3, with a ‘Buy’ rating on the shares.
As of Q1 2021, 19 hedge funds tracked by Insider Monkey have positions in XPeng Inc. (NYSE: XPEV), worth over $976 million. With 16.3 million shares, worth $596.5 million, Coatue Management is the largest shareholder of the company.
Like General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), Aptiv PLC (NYSE: APTV), Tesla, Inc. (NASDAQ: TSLA), Magna International Inc. (NYSE: MGA), and Fisker Inc. (NYSE: FSR), XPeng Inc. (NYSE: XPEV) is one of the best electric car stocks to buy now.
8. Fisker Inc. (NYSE: FSR)
Number of Hedge Fund Holders: 22
Fisker Inc. (NYSE: FSR) is an American electrical vehicle automaker with headquarters in California, U.S. Fisker Karma, manufactured by the company, was one of the world’s first plug-in electric vehicles. Fisker Inc. (NYSE: FSR) lays its focus on clean energy by producing sustainable vehicles.
The first-quarter earnings of Fisker Inc. (NYSE: FSR) remained in-line with the analysts’ expectations. In June, Fisker Inc. (NYSE: FSR) entered into an agreement with Magna International Inc. (NYSE: MGA) to produce an all-electric Fisker Ocean SUV at Magna’s production facility. In the past year, the FSR stock has gained 23% and 2.4% in the past 6 months. In June, RBC Capital initiated its coverage on Fisker Inc. (NYSE: FSR) with an ‘Outperform’ rating and a $27 price target.
As of Q1 2021, 22 hedge funds tracked by Insider Monkey have positions in Fisker Inc. (NYSE: FSR), up from 18 funds in the previous quarter. These stakes are valued at over $337 million.
Like General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), Aptiv PLC (NYSE: APTV), Tesla, Inc. (NASDAQ: TSLA), Magna International Inc. (NYSE: MGA), XPeng Inc. (NYSE: XPEV), and ChargePoint Holdings, Inc. (NYSE: CHPT), Fisker Inc. (NYSE: FSR) is one of the best electric car stocks to buy now.
7. ChargePoint Holdings, Inc. (NYSE: CHPT)
Number of Hedge Fund Holders: 24
ChargePoint Holdings, Inc. (NYSE: CHPT) is a leading chain of electric vehicle charging stations in North America and Europe. The company offers its customers access to thousands of places to charge with one account. Over 60% of Fortune 50 companies are the customers of ChargePoint Holdings, Inc. (NYSE: CHPT), according to the company website.
In Q1 FY22, ChargePoint Holdings, Inc. (NYSE: CHPT) generated a revenue of $40.5 million, presenting a 24% year-over-year growth. Networked charging revenue stood at $26.8 million, up from $19.7 million during the same period last year. For the fiscal year 2022, ChargePoint Holdings, Inc. (NYSE: CHPT) expects revenue in the range of $195 to $205 million. The subscription segment accounted for $10.8 million of the gross revenue and the company’s total customers have reached 5,000 in the first quarter. In July, DA Davidson initiated its coverage on ChargePoint Holdings, Inc. (NYSE: CHPT) with a ‘Buy’ rating and a $30 price target. In the past year, the stock has delivered a 122.3% return to shareholders.
As of Q1 2021, 24 hedge funds tracked by Insider Monkey have stakes in ChargePoint Holdings, Inc. (NYSE: CHPT), worth over $207 million. Like General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), Aptiv PLC (NYSE: APTV), Tesla, Inc. (NASDAQ: TSLA), Magna International Inc. (NYSE: MGA), Fisker Inc. (NYSE: FSR) and XPeng Inc. (NYSE: XPEV), ChargePoint Holdings, Inc. (NYSE: CHPT) is one of the best electric car stocks to buy now.
Alger, an investment management firm, published its first-quarter 2021 investor letter and mentioned ChargePoint Holdings, Inc. (NYSE: CHPT) and other stocks in it. Here is what the firm has to say about CHPT:
“ChargePoint Holdings, Inc. was among the top detractors from performance. ChargePoint provides a network of electric vehicle (EV) charging stations globally. Like equities of many businesses geared to electric vehicles, ChargePoint shares underperformed in the first quarter of 2021 as part of a broad rotation away from high-growth technology companies with limited track records of performance as public companies. Longer term, Charge Point could potentially serve as a bellwether company of the fast growing EV category and we believe it is an attractive way to gain exposure to EV adoption without betting on whether a particular EV brand will win in the marketplace. Additionally, EVs are a massive end market.”
6. NIO Inc. (NYSE: NIO)
Number of Hedge Fund Holders: 28
NIO Inc. (NYSE: NIO) ranks sixth on our list of the best electric car stocks to buy now. It is a Chinese automobile manufacturer specializing in developing smart electric vehicles. Along with this, the company also provides premium services to its customers. NIO Inc. (NYSE: NIO) was founded in 2014, and its global headquarters are located in Shanghai, China.
In Q1 2021, NIO Inc. (NYSE: NIO) delivered over 20,000 vehicles, presenting a 15.6% growth from the previous quarter. The company generated a revenue of $1.2 billion, representing a 481% year-over-year growth. In June, vehicle delivery at NIO Inc. (NYSE: NIO) grew by 116% year-over-year at 8,083 vehicles. In the past year, the NIO stock has delivered a 227.5% return to the shareholders. In July, HSBC raised its price target on NIO Inc. (NYSE: NIO) to $69, with a ‘Buy’ rating. Similarly, Citigroup also raised its price target to $72, with a ‘Buy’ rating.
As of Q1 2021, 28 hedge funds have positions in NIO Inc. (NYSE: NIO), worth $1.3 billion. Quaero Capital is the largest shareholder of the company with shares worth $3.1 million.
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Disclosure. None. 15 Best Electric Car Stocks to Buy Now is originally published on Insider Monkey.
