In this article, we discuss the 5 best electric vehicle stocks to buy for the long term. If you want to read about some more EV stocks for the long term, go directly to “EVs Still Appear Conservative”: 10 Best Electric Vehicle Stocks to Buy for Long Term.
5. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 46
Ford Motor Company (NYSE:F) designs, manufactures, markets, and services a range of Ford vehicles. In addition to hundreds of millions poured into EV manufacturing over the past few years, Ford is listed among the best electric vehicle stocks to buy for the long term since it is also investing in autonomous driving, a key EV growth driver. On September 12, the firm said it was expanding the availability of its advanced driver assistance technologies, BlueCruise and ActiveGlide, to the Lincoln and Mustang models.
On September 20, Morgan Stanley analyst Adam Jonas maintained an Equal Weight rating on Ford Motor Company (NYSE:F) stock with a price target of $14, noting the market was not yet out of the woods in terms of supply chain tightness in auto.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Ford Motor Company (NYSE:F), with 29 million shares worth more than $323 million.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“Ford (NYSE:F) is another example of typical industrial manufacturing business executive mindsets. The April 18, 2022, Bloomberg Businessweek cover story features Ford CEO Jim Farley behind the wheel of an electrified Ford F-150 Lightning. The article is titled, “Hey Elon, THIS is a truck.” I thought the article was terrific. One idea especially stood out to me. Since the F-150 is such a popular vehicle, it “argued for a gradual approach to electrification. Essentially the company retrofitted an existing F-150 with an electric powertrain rather than develop an entirely new truck.” No all-in financial and operation bet by this company on electrification.”
4. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 56
Freeport-McMoRan Inc. (NYSE:FCX) engages in the mining of mineral properties in North America, South America, and Indonesia. The company features among the best electric vehicle stocks to buy for the long term since it has extensive interests in copper. Copper is one of the most critical materials used in the manufacture of electric vehicles. In addition to copper, the firm also has interests in other EV materials, like lithium, cobalt, and other metals, all used in the production of electric vehicles.
On July 22, investment advisory RBC Capital maintained a Sector Perform rating on Freeport-McMoRan Inc. (NYSE:FCX) stock and lowered the price target to $35 from $46. Analyst Sam Crittenden issued the ratings update.
At the end of the second quarter of 2022, 56 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Freeport-McMoRan Inc. (NYSE:FCX), compared to 68 the preceding quarter worth $4.1 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Freeport-McMoRan Inc. (NYSE:FCX) was one of them. Here is what the fund said:
“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles and energy storage systems. The firm is among the best electric vehicle stocks to buy for the long term since it is the one of the largest EV companies in the world in terms of production, sales, and delivery numbers. The company also has an international presence and has already streamlined supply chain issues that are likely to haunt other automakers in the coming years.
On September 6, Wolfe Research analyst Rod Lache upgraded Tesla Inc. (NASDAQ:TSLA) stock to Outperform from Peer Perform with a price target of $360, noting that the firm would benefit from the Inflation Reduction Act.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $7.1 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 80 in the preceding quarter worth $11.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:
“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic; second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships. Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, tests, and sells integrated circuits and other semiconductor devices. The firm is on the list of best electric vehicle stocks to buy for the long term since it is one of the top producers of semiconductors around the globe. These semiconductors, which are only made in a handful of countries, are critical to the overall production of EVs since they control many software and hardware functions in electric cars.
On July 14, investment advisory Susquehanna maintained a Neutral rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock and lowered the price target to $88 from $90. Analyst Mehdi Hosseini issued the ratings update.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared to 81 in the preceding quarter worth $10 billion.
In its Q2 2022 investor letter, Mercator International Opportunity fund, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:
“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”
1. General Motor Company (NYSE:GM)
Number of Hedge Fund Holders: 75
General Motor Company (NYSE:GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories. It is on our list of best electric vehicle stocks to buy for the long term as it is investing heavily in new technology and already has a legacy business to support the EV transition. On September 20, Hertz Global Holdings said that it was planning to order up to 175,000 EVs from General Motors over the next five years. These include electric models of Chevrolet, Buick, GMC, Cadillac, and BrightDrop.
On September 9, Bank of America analyst John Murphy maintained a Buy rating on General Motor Company (NYSE:GM) and lowered the price target to $90 from $95, noting that supply chain issues were likely to pressure auto volumes into 2023.
At the end of the second quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in General Motor Company (NYSE:GM), compared to 76 in the preceding quarter worth $5.5 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and General Motor Company (NYSE:GM) was one of them. Here is what the fund said:
“General Motor Company (NYSE:GM)—and the auto industry in general—continues to face headwinds related to supply chain disruptions and raw material cost inflation. In addition, uncertainty surrounding global energy markets due to inflation and the conflict in Ukraine has created a greater economic burden on consumers, which tends to slow automotive sales.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
