In this article we discuss the 5 best electric car stocks to buy now. If you want to read our detailed analysis of the EV industry, go directly to the 15 Best Electric Car Stocks to Buy Now.
5. Magna International Inc. (NYSE: MGA)
Number of Hedge Fund Holders: 34
Magna International Inc. (NYSE: MGA) is a Canadian manufacturing company that specializes in automotive components. It is the largest supplier of automotive products in North America. The company plans to expand its operations in North America to focus on the production of electric vehicles. In June, Magna International Inc. (NYSE: MGA) announced that it holds a 7.4% stake in an American automaker company, Fisker Inc. (NYSE: FSR).
In Q1 2021, Magna International Inc. (NYSE: MGA) reported a net income of $615 million, up from $261 million during the same period last year. The EPS beat the estimates by $0.29 at $1.86. The consolidated revenue presented an 18% year-over-year growth at $10.2 billion mainly due to higher light vehicle production globally. Complete vehicles accounted for $1.8 billion of the gross revenue, showing 40% growth from the prior-year quarter. Magna International Inc. (NYSE: MGA) also returned $280 million to shareholders in the first quarter through dividends and buybacks. Recently, Goldman Sachs raised its price target on Magna International Inc. (NYSE: MGA) to $12, with a ‘Buy’ rating. Since the beginning of the year, the stock has delivered a 20.2% return to shareholders and 79.2% in the past year.
As of Q1 2021, 34 hedge funds tracked by Insider Monkey have positions in Magna International Inc. (NYSE: MGA), worth $671.7 million. Heathbridge Capital Management is the biggest shareholder of the company, with shares worth over $16 million.
4. Ford Motor Company (NYSE: F)
Number of Hedge Fund Holders: 49
Ford Motor Company (NYSE: F) is an American automaker company with headquarters in Michigan, U.S. The company is using electrification in vehicles and plans to spend $30 billion on electric vehicles by 2025. Recently, Ford Motor Company (NYSE: F) announced that by 2030, 40% of its vehicles will go all-electric. The company stands fourth on our list of the best electric car stocks to buy now.
In Q2 2021, Ford Motor Company (NYSE: F) generated over $26.7 billion in revenues, compared with $19.3 billion, presenting a 45.1% year-over-year growth. The EPS of $0.13 beat the market consensus by $0.09. The company reported a 117% growth in electrified vehicle sales in the U.S. in June. In the first half of 2021, the retail truck sales at Ford Motor Company (NYSE: F) grew by 2.6%. Due to the strong earnings, the company raised its 2021 guidance and expects an adjusted EBIT of between $9 billion and $10 billion. John Murphy, an analyst at BofA, raised the investment bank’s price target on Ford Motor Company (NYSE: F) to $18, with a ‘Buy’ rating. The stock has gained 108.5% in the past year and 63.7% year to date.
The hedge funds are also taking interest in Ford Motor Company (NYSE: F), as 49 funds have positions in the company in the first quarter of 2021, compared with 41 in the previous quarter. The total value of these stakes is $2.1 billion.
3. Aptiv PLC (NYSE: APTV)
Number of Hedge Fund Holders: 50
Aptiv PLC (NYSE: APTV) is an American technology company mainly serving in the automotive sector. It develops and manufactures system-level solutions for electric vehicles. The company has over 124 manufacturing facilities and 12 major technical centers located worldwide. It stands third on our list of the best electric car stocks to buy now.
In Q1 2021, Aptiv PLC (NYSE: APTV) reported a net income of $301 million, up from $173 million during the same period last year. The EPS was recorded at $1.06, beating the consensus by $0.28. The consolidated revenue stood at $4.02 billion, presenting a 25% year-over-year growth. Recently, Deutsche Bank raised its price target on the APTV stock to $169, with a ‘Buy’ rating on the shares. Similarly, Jefferies also raised its price target on Aptiv PLC (NYSE: APTV) to $182. Since the beginning of the year, the stock has delivered a 28.8% return to shareholders, extending its 12-month gains to 109.3%.
As of Q1 2021, 50 hedge funds tracked by Insider Monkey have positions in Aptiv PLC (NYSE: APTV), up from 44 in the previous quarter. Intermede Investment Partners is the largest shareholder of the company, with shares worth over $95 million.
Oakmark Funds released its first-quarter 2021 investor letter and mentioned Aptiv PLC (NYSE: APTV) and other stocks in it. Here is what the firm has to say about APTV:
“Aptiv approached our estimates of intrinsic value and was, therefore, eliminated during the period. The company was longstanding investment of the Fund and produced successful outcomes. We continue to believe that Aptiv is a well-positioned auto supplier that is likely to continue outgrowing light vehicle production for the foreseeable future, but this dynamic is now more fully appreciated by the market.”
2. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 62
Tesla, Inc. (NASDAQ: TSLA) is an American electric vehicle company with the main focus on clean energy. The company is considered a pioneer in the manufacturing of electric vehicles. Along with this, Tesla, Inc. (NASDAQ: TSLA) also produces solar panels and solar roof tiles.
In Q2 2021, Tesla, Inc. (NASDAQ: TSLA) reported a net income of $1.6 billion, compared with $451 million, presenting 258% year-over-year growth. The EPS stood at $0.93, beating the consensus by $0.14. The revenue also showed a 98% year-over-year growth at $11.9 billion, massively driven by vehicle deliveries. In 2021, Tesla, Inc. (NASDAQ: TSLA) expects to achieve a 50% average annual growth in vehicle deliveries. In the second quarter, energy generation and storage accounted for $801 million of the gross revenue. Recently, Piper Sandler raised its price target on Tesla, Inc. (NASDAQ: TSLA) to $1,200, with an ‘Overweight’ rating on the shares.
As of Q1 2021, 62 hedge funds tracked by Insider Monkey have positions in Tesla, Inc. (NASDAQ: TSLA), worth over $10 billion. Fisher Asset Management is the leading shareholder of the company with shares worth $3.1 million.
Baron Funds, an asset management firm, published its first-quarter 2021 investor letter and mentioned Tesla, Inc. (NASDAQ: TSLA) and other stocks in it. Here is what the firm has to say about TSLA:
“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.”
1. General Motors Company (NYSE: GM)
Number of Hedge Fund Holders: 86
General Motors Company (NYSE: GM) tops our list of the best electric car stocks to buy now. It is an American vehicle company that manufactures and markets vehicles and vehicles parts. The company’s ‘Electrification’ project plans to offer over 30 new electrical vehicles by 2025. The Ultium batteries will allow the company to reach 90% lower combustion engines. General Motors Company (NYSE: GM) is the parent company of some of the most famous vehicles companies, such as Chevrolet, Cadillac, Opel, etc.
In Q1 2021, General Motors Company (NYSE: GM) reported a net income of $3.02 billion, up from $0.3 billion during the same period last year. The EPS beat the market consensus by $1.21 at $2.25. The consolidated revenue stood at $32.5 billion for the quarter. For 2021, the company expects a net income of between $6.8 billion to $7.6 billion. John Muphy, an analyst at BofA, expects solid earnings from General Motors Company (NYSE: GM) in Q2. He rated the GM stock as a ‘Buy’ with a $90 price target. The GM stock has delivered a 121.6% return to shareholders in the past year.
The hedge funds are also turning bullish on General Motors Company (NYSE: GM), as in Q1 2021, 86 funds have positions in the company, compared with 70 in the previous quarter.
Junto Investments published its Q4 2020 investor letter and mentioned General Motors Company (NYSE: GM) and other stocks in it. Here is what the investment management firm has to say about GM:
“General Motors was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and the company is worth a whole lot more than is still reflected in the market.”
You can also take a look at 10 Best EV SPACs to Buy Now and 21 Best Electric Cars of 2021.
