In this article, we will discuss the 5 best EV Stocks to Buy Now. To read our detailed analysis on the EV industry, its history, current status, and future outlook, please go directly to the 11 Best EV Stocks to Buy Now.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 80
Tesla, Inc. (NASDAQ:TSLA) is the vertically integrated sustainable energy company, aiming to transition the world to electric mobility through the manufacturing of the EVs.
By the end of the first quarter of 2022, 80 hedge funds out of 912 tracked by Insider Monkey held stakes in this company. In the preceding quarter, 91 hedge funds out of 924 tracked by Insider Monkey reported owning stakes in this company.
Oppenheimer raised its target price on Tesla, Inc. (NASDAQ:TSLA) from $1,103.00 to $1,291.00 and gave it an “Outperform” rating.
Despite supply chain challenges and factory shutdowns, the company produced over 305,000 vehicles and delivered over 310,000 vehicles in 1Q22. The company posted total revenue of $18.8 billion, up 81% year-over-year. Over the multi-year horizon, Tesla, Inc. (NASDAQ:TSLA) expects achieving 50% average annual growth in vehicle deliveries. The company enjoys healthy liquidity levels to fund its product roadmap, long-term plans for capacity expansion and other miscellaneous expenses.
Baron Funds, an asset management firm, released its first-quarter 2022 investor letter and mentioned Tesla, Inc. (NASDAQ:TSLA). Here is what the fund said:
“During the first quarter, we bought back shares in Tesla, Inc., which designs, manufactures, and sells electric vehicles, solar products, energy storage solutions, and batteries. We believe that despite the run in the stock over the last few years, Tesla presents a favorable risk/reward profile and remains a Big Idea with only about 1% market share of the automotive market. Since we bought the stock during the first quarter, shares increased 27.1%, despite a complex supply-chain environment, on continued revenue growth and record profitability. Robust demand and operational optimization allow the company to offset inflationary pressures while vertical integration provides flexibility around supply bottlenecks. Moreover, we expect new localized manufacturing capacity to drive additional efficiencies while software initiatives, including the autonomous driving program, are accelerating, offering valuable optionality to the stock.”
4. Lightning eMotors, Inc. (NYSE:ZEV)
Number of Hedge Fund Holders: 15
Lightning eMotors, Inc. (NYSE:ZEV) manufactures electric fleet of medium and heavy-duty vehicles, that include delivery trucks, shuttle buses, passenger vans, chassis-cab models, and city transit buses.
The company has turned heads of numerous hedge fund managers in the recent quarter. By the end of the first quarter of 2022, 15 hedge funds out of 912 tracked by Insider Monkey held stakes in this company. Their stakes were valued at ~$10.5 million. In the preceding quarter, 7 hedge funds out of 924 tracked by Insider Monkey held stakes in Lightning eMotors, Inc. (NYSE:ZEV).
Northland Securities gave an “Outperform” rating on Lightning eMotors, Inc. (NYSE:ZEV), with a price target of $6.50. The company has narrowed profitability gap in its 1Q22 results. Quarterly net loss of $10.8 million against $27.4 million net loss in 1Q21 means the company has a clear path to profitability. The company, which has given increased revenue guidance of $6 million- $8 million for second quarter, has teamed with Blue Bird Corporation (NASDAQ:BLBD) and General Motors Company (NYSE:GM). Not only this, it has won new and repeat orders with major fleets in the U.S. and Canada.
In 1Q22, the company saw record revenue of $5.4 million, exhibiting 18% year-over-year growth, on 68 units sold. Lightning eMotors, Inc. (NYSE:ZEV) expects selling 55 units to 75 units of vehicle and powertrain in the second quarter.
3. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 46
Ford Motor Company (NYSE:F) is engaged in manufacturing automobiles under its Ford and Lincoln brands. In March 2022, the company made an announcement that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses.
The company has maintained its FY22 outlook of $11.5 billion-$12.5 billion for adjusted EBIT. It anticipates posting adjusted FCF for FY22 of $5.5 billion-$6.5 billion. The outlook numbers are being backed by solid demand and pricing environment for its vehicles.
EV sales of the company jumped 221.5% in May. The company commented that it is ~4 times faster in comparison to overall EV sales growth in the United States.
In the same month, Ford Motor Company (NYSE:F) commenced selling its F-150 Lightning pickups, and the company said over 75% of its customers booking all-electric truck are new to the company. Therefore, we can now have a fair idea about the market size which F-150 Lightning can capture in upcoming years. The company has plans to invest ~$3.7 billion and add over 6,200 new union jobs at 3 of its plants. This investment comes on the heels of its decision to ramp up production of gas-powered and EVs both.
At the end of the first quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.23 billion in Ford Motor Company (NYSE:F), down from 53 in the preceding quarter worth $1.70 billion. Recently, BNP Paribas initiated coverage on the company, and gave it an “Outperform” rating.
2. Aptiv PLC (NYSE:APTV)
Number of Hedge Fund Holders: 48
Aptiv PLC (NYSE:APTV) is a leading global technology and mobility company. The company principally serves the automotive sector, and it designs and manufactures vehicle components and offers electrical, electronic and active safety technology solutions to the global automotive and commercial vehicle markets.
In 1Q22, its U.S. GAAP revenue was $4.2 billion, exhibiting a rise of 4%. The company anticipates net sales of between $17,750 million – $18,150 million in FY22. That’s a growth of ~13.7% year-over-year on lower end of the range. It expects its adjusted EBITDA to come in the range of $2,415 million-$2,695 million. The company continues to benefit from one of the strongest secular tailwinds. Rapid transition around the globe on producing BEVs should lend support to the company’s profits, margin, and ROI.
Furthermore, planned cash acquisition of $4.3 billion of Wind River from private equity firm TPG should give the company an edge over its competitors, mainly with autonomous driving vehicles. The company is scheduled to close this acquisition in mid-2022. The company has been working with over 20 global automakers and should be a lead beneficiary from megatrends driving change in this industry as car and truck makers are battling to roll out next generation of fleets which are greener and smarter. Several changes are due to the government mandates.
As of the first quarter of 2022, 48 hedge funds out of the 912 funds tracked by Insider Monkey held stakes in the company, up from 44 hedge funds in the preceding quarter. Analysts at BNP Paribas initiated coverage on Aptiv PLC (NYSE:APTV), and gave an “Outperform” rating with the price target of $160.00. The company seems to be in an excellent position to strengthen its competitive position given its relentless focus on execution.
ClearBridge Investments, an investment management firm, published first quarter 2022 investor letter and mentioned Aptiv PLC (NYSE:APTV). Here is what the fund has to say:
“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”
1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 76
General Motors Company (NYSE:GM) designs, builds and sells trucks, crossovers, cars and automobile parts worldwide. Cruise is the company’s global segment, which takes care of the development and commercialization of autonomous vehicle technology. Its automotive operations address the demands of its customers through automotive segments: GM North America and GM International.
By the end of the first quarter of 2022, 76 hedge funds out of the 912 tracked by Insider Monkey held stakes in this company. The total value of their stakes was $5.50 billion. Comparatively, in the previous quarter, 90 hedge funds held stakes in the company worth $7.13 billion. The company ranks 1st on our list of the 11 best EV stocks to buy now.
In the first quarter of 2022, the company saw EBIT-adjusted of $4 billion. This solid start to the year was off the back of strong customer demand for its products. General Motors Company (NYSE:GM) expects reporting diluted EPS in the range of $5.76-$6.76 for FY22. The company anticipates FY22 net income of between $9.6 billion-$11.2 billion. The company expects that its biggest opportunity in North America is in electric trucks.
General Motors Company (NYSE:GM) continues to make progress on the electrification of their offerings. The company has plans to launch 30 EVs by the year 2025. By the mid-decade, plans are there to sell more than 2 million EVs annually only in North America. It has been betting big on battery technology and autonomous driving given its plans to invest ~$35 billion on these verticals.
Oakmark Funds, an investment management firm, published its 1Q22 investor letter and mentioned General Motors Company (NYSE:GM). Here is what the fund said:
“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are underappreciated.”
You can also take a peek at Top 10 Electric Bike Companies in the World and 10 Electric Car Stocks to Buy for 2022
