Are you looking for the best EV stocks to buy? There’s a fortune to be made as we begin the long process of replacing ICE (internal combustion engine) vehicles with their electric counterpart.
EV stocks are set to explode once more consumers embrace this new technology and shift towards eco-friendly cars, trucks, and SUVs.
Table of Contents
- The Shift from ICE to EVs is Long Overdue
- Why Invest in Electric Vehicle (EV) Stocks?
- EV Sales Will Skyrocket This Decade
- Best Electric Car Stocks
- How to Invest in EV Stocks
- EV Stocks FAQ
The Shift from ICE to EVs is Long Overdue
The truth is the EV shift will happen because ICE technology is extremely outdated.
The first commercially successful internal combustion engine was created by Étienne Lenoir around 1860.
That’s over 150 years ago!
For centuries, consumers drove gas-guzzling vehicles because it was the norm.
Gas-powered car technology is over 150 years old and needs to be replaced with more environmentally friendly electric-powered vehicles.
Why Invest in Electric Vehicle (EV) Stocks?
Governments from all over the world want their citizens to embrace clean energy vehicles.
EVs fight climate change by reducing carbon emissions that pollute our air and lower our quality of life.
Electric cars maintain their value longer, require less maintenance, and cost less money to charge.
The EV explosion is just beginning and there are a lot of new, exciting companies that will take market share from legacy automakers like Ford, General Motors, and Toyota.
In the future, governments will pass mandates to force consumers to drive electric vehicles.
Thus electric car makers will earn massive revenue and see their stock prices soar.
EV Sales Will Skyrocket This Decade
Here’s a graph showing the projected growth of EVs in 2040:
We’re currently in the early stages of the EV boom and there are dozens of great EV stocks to buy as more people choose electric vehicles over legacy ICE vehicles.
It seems like a new EV SPAC launches every week so it’s difficult to keep track of all these EV stocks.
Below is a list of the best EV stocks to buy in 2021 for savvy investors. I’ve included my analysis covering some of the best electric car stocks to buy right now.
I excluded EV charging station stocks from this list because they don’t actually produce any vehicles.
Best Electric Car Stocks
Here’s a list of the best EV stocks to buy right now:
- Tesla (NASDAQ: TSLA)
- Nio (NASDAQ: NIO)
- Xpeng (NYSE: XPEV)
- BYD (OTC: BYDDY)
- Workhorse (NASDAQ: WKHS)
- Electrameccanica (NASDAQ: SOLO)
- Fisker (NYSE: FSR)
- Arcimoto (NASDAQ: FUV)
- Canoo (NASDAQ: GOEV)
- Lucid Motors (NYSE: LCID)
- Kandi (NASDAQ: KNDI)
- Arrival (NASDAQ: ARVL)
- Faraday Future (NASDAQ: FFIE)
- Rivian (NASDAQ: RIVN)
- Polestar (NASDAQ: GGPI)
Here’s a comparison chart of the best EV stocks for the long term by market cap:
|Ticker||Company Name||Last Price||Market Cap|
1. Tesla (TSLA)
When it comes to EVs, Tesla is currently the undisputed king of the electric car boom.
Last year alone, Tesla stock soared over 700% and joined the S&P 500 after 5 consecutive quarters of positive earnings.
Tesla is the clear leader in electric cars with a $1+ trillion market cap and projected 750,000 deliveries in 2021.
Tesla recently revamped the Model S Plaid to compete in the EV luxury market with Mercedes, Lexus, and newcomers like Lucid Motors.
The Model 3 is arguably the best-selling EV worldwide and leads the world’s biggest EV market in China.
Tesla bulls speculate that the company could also launch robot & air taxis to increase income further.
However, let’s not forget that Tesla is not just an electric car company. Tesla also offers a fast-growing solar energy business that sells solar roofs and power walls to help power residential homes with renewable energy.
In its most recent Q3 2021 earnings report, Tesla silenced the critics again with over 240,000 deliveries and over $1.6 billion in net income. Tesla has achieved 6 straight quarters of positive net income and no longer needs to raise capital through dilutive stock sales or convertible bonds to raise capital.
TSLA shares will continue to trade a massive premium as long as the company continues to increase EV deliveries annually and grow its solar energy business.
Tesla will scale deliveries further when the building of 2 new gigafactories in Austin, TX (USA) and Berlin, Germany.
Tesla is also one of the few companies to add Bitcoin to its balance sheet. Tesla purchased $1.5 billion in Bitcoin and will consider accepting Bitcoin for future car purchases if Bitcoin mining uses at least 50% renewable energy.
According to Bitcointreasuries.net, Tesla currently holds 43,200 BTC worth $2.1 billion.
Not only does Tesla have plenty of revenue upside, but Tesla stock will gain in value as Bitcoin rises over time.
My future 2030 Tesla Stock prediction is over $16,000 per share if TSLA shares continue compounding at around a 50% CAGR. That gives Tesla stock at least 20 to 25x upside over the next 8 years.
TSLA Stock Price Prediction for 2025: $3,000
2. Nio (NIO)
Nio is the best Chinese EV stock to buy right now because many people believe it’s the “Tesla of China”.
The Nio ET7 is the only model that hasn’t launched yet but the company plans to start producing deliveries in 2022. The ET7 is a direct competitor to the Tesla Model S and Lucid Air.
The company allows customers to purchase EVs using a battery swap technology that saves thousands by allowing customers to “replace” batteries at any time.
Nio has already installed 700 battery swap stations in China with a goal to reach 4,000 stations worldwide by 2025.
In Q3 2021, Nio delivered 24,439 vehicles (Up 100% YOY) with an impressive 18% vehicle margin while quarterly revenue reached $1.5 billion (Up 115% YOY)
As of November 30, 2021, Nio’s total cumulative deliveries of the ES8, ES6 and EC6 reached 156,581 with future plans for growth once the ET7 launches in 2022.
Nio is well-positioned in China, the world’s largest EV market, and have increased deliveries gradually every month.
Despite increased output and revenue, Nio stock is trending down along with the entire EV industry.
The dilution of Nio shares remains an ongoing problem as Nio continues share offering to raise capital, which has increased the total shares outstanding considerably.
With a $50 billion market cap, many investors probably think most of the growth is done but Nio should continue scaling out deliveries and adding more revenue in the years to come.
Nio Stock Price Prediction for 2025: $200
3. Xpeng (XPEV)
Xpeng is another Chinese EV maker that’s growing at a fast clip.
The company sells two electric vehicles: the G3 SUV and four-door sedan P7.
Xpeng focuses on improving the underlying technology and software of its EVs with Xpilot 3.0, a full-stack autonomous driving system similar to Tesla’s FSD.
Xpeng recently went IPO in August 2020 and delivered 27,041 vehicles in 2020.
Unlike Nio, Xpeng is building an expansive supercharging station network like Tesla and has 159 stations covering 54 cities as of Q4 2020.
Many Chinese car experts say it’s the best overall luxury sedan in China. Lots of growth potential in Europe, too.
4. BYD (BYDDY)
BYD is a Chinese-based EV maker that also produces ICE vehicles at the moment but I expect the company to focus solely on EVs in the future.
In Q2 2021, BYD delivered 54,841 EVs alone and currently outproduces both Nio and Xpeng. While EV sales grew 155% YOY, ICE sales plunged 6%.
If you’re thinking about investing BYDDY stock then you’re in good company. Warren Buffett’s Berkshire Hathaway bought a 10% stake in the company back in 2008 for $232 million.
Buffett disclosed in his 2020 annual shareholder letter that the current stake is around 8.2% of the BYDDY’s current market value, which would be nearly $10 billion in today’s current price levels.
One of the reasons many investors don’t talk much about BYD is because BYDDY stock trades on the OTC markets. You cannot purchase shares through stock trading apps like Robinhood or Webull. That means companies like BYD receive a lot less exposure to EV investors.
There are currently 2 different BYD stocks available on the OTC: BYDDF and BYDDY. BYDDY represents the ADRs (American depository receipts) and looks like the better investment for American investors.
BYDDF represents ordinary Chinese shares but sells at a much cheaper price. In my experience, buying the ADR makes everything much easier.
Also, BYD still sells ICE vehicles at the moment. If you’re interested in a Chinese pure-play EV stock then Nio or Xpeng are better alternatives.
Nonetheless, I felt obligated to include BYD on this list due to their massive EV sales and Warren Buffett’s large stake in the company. Many people consider Warren Buffett the greatest investor of all time so I always take notice when he buys or sells any stock.
5. Workhouse (NASDAQ: WKHS)
Workhorse is off to a rough start in 2021 after missing out on the lucrative USPS contract. The company plans to meet with USPS to reconsider missing out on the deal.
Workhorse has 8,000 vehicles in its backlog but 2020 revenue was only just over $1 million.
After a major selloff due to losing out on the USPS deal initially, WKHS stock fell all the way to just around $8. Now, WKHS stock has rebounded after being targeted by meme stock traders as a potential short squeeze play.
Workhorse offers an amazing electric delivery van with a last-mile delivery drone that will become the future of package delivery.
The company reported Q1 2021 revenue of $500,000 with the sale of 6 trucks in the first quarter.
Net losses reached $120 million and the company readjusted its 2021 production goals to 1,000 trucks. As of Q1 2021, Workhorse has $205.1 million in cash on its balance sheet.
Workhorse’s 10% stake in Lordstown Motors (RIDE) has fallen in value as well to around $195 million.
It looks like bottlenecks within the global semiconductor shortage and offshore shipping delays have hurt Workhorse’s production in the short term.
WKHS stock looks extremely overvalued with such low revenue at nearly a $2 billion market cap. Of course, investors are betting on future growth and the stock is selling at a premium but looks attractive long term.
If we include the $205.1 million in cash plus the $195 million stake in Lordstown Motors then Workhorse trades at a reasonable Price to Book Value of 3.
Missing out on the USPS contract really hurt future plans for Workhorse and the company has only produced 38 C-series vehicles this year. If production improves then I’ll consider WKHS stock a strong buy.
6. Electrameccanica (SOLO)
The first SOLO EV hit American shores in Q3 2020 and the company has over 75,000 preorders for its flagship, SOLO.
The stock is on a recent tear and is still under a $500 million market cap.
Many people give funny looks when seeing a SOLO for the first time but it drives just like a regular car.
The SOLO reaches a top speed of 80 mph and has a charge range of 100 miles.
Many test drivers are skeptical at first but end up enjoying their first ride in a SOLO.
From Youtube to news articles, test drivers love the SOLO driving experience although it’s not a great vehicle for driving in snowy conditions.
The SOLO will disrupt the EV market because it’s a single seated vehicle. Many people want a motorcycle-like vehicle with superior safety and protection from rainfall.
Electrameccanica will deliver its first SOLO preorders in mid-2021 and the company plans to build its own US factory in Phoenix (AZ).
The company is focusing on the West Coast USA but will expand across North America in the future.
Once SOLO deliveries ramp up, I expect SOLO stock to soar in value as more people embrace a smaller, more economical 3-wheeled vehicle.
SOLO Stock Rating: Buy
7. Fisker (FSR)
Luxury car designer Henrik Fisker makes a 2nd attempt at competing with Tesla with the recent SPAC-IPO.
Fisker originally tried to compete in the EV market 10 years ago but went bankrupt due to a natural disaster crisis that destroyed a bunch of Fisker prototypes. Using a capital-heavy business model, Fisker ran out of money quickly and exited the EV space.
Years later, a more mature Henrik Fisker relaunched his company with an asset-light business model that focuses only on design and outsources production to 3rd parties like Manga International and Foxconn.
Apple used the same outsourcing model to become the most valuable tech company in the world so hopefully, Fisker has similar success.
Fisker will begin production of its flagship vehicle, the Fisker Ocean, in partnership with Manga International on November 17th, 2022 at Manga’s Graz, Austria factory.
The Fisker Ocean starts at a base price of $37,499 and features 546 HP with a 250 to 350-mile charging range along with a 100% vegan interior and stylish exterior design.
The company projects over $13 billion in revenue by 2025, which makes FSR stock look like an attractive long-term hold. If Fisker trades at a Price to Sales ratio of 10 then FSR stock could reach a $130 billion market cap in the next 3 years. That’s 26x the current market cap of around $5 billion.
Of course, We don’t know for sure if Fisker will hit these revenue goals but I do like their asset-light business model and focus on beautiful seamless design.
8. Arcimoto (FUV)
Arcimoto is an American electric vehicle maker based out of Eugene, Oregon that plans to produce its flagship 3-wheeled vehicle, the Fun Utility Vehicle (aka FUV).
The FUV starts at a base price of $17,900 with 82 miles range and a top speed of 70 mph. The 3 wheeled FUV (Fun Utility Vehicle) is another futuristic vehicle that aims to capture a niche EV market.
Arcimoto also plans to produce 2 variations of the original FUV called the Rapid Responder (for emergency services like Police, Fire, and EMT) and the Deliverator (for last-mile deliveries).
It may be weird for some investors to see these types of EVs on the road but apparently, demand is fairly high.
Celebrities such as actor Mark Walhberg and Youtuber MeetKevin drove the FUV and fell in love with the vehicle.
While many investors are excited about the future for FUV stock, the company hasn’t delivered (no pun intended) on its lofty goals.
During Q3 2021, Arcimoto sold 63 FUVs and produced a total of 78 vehicles. Revenue was up 119% YoY to just under $1.5 million but doesn’t justify FUV’s inflated $236 million market cap.
FUV stock trades at an insane Price to Sales ratio of 78 and I don’t recommend buying FUV shares at these current prices. There are much better EV stocks out there with similar potential trading at far more attractive valuations.
The good news is Arcimoto plans to produce 50,000 vehicles per year in its new manufacturing plant so there could be some bullish momentum in the future.
FUV stock remains on my watchlist but I wouldn’t consider buying any shares unless the price falls a lot more. It’s simply too overvalued right now.
FUV Stock Rating: SELL
9. Canoo (GOEV)
Canoo is an American EV maker that’s faced a lot of short-term issues with its business model in recent months. After completing its SPAC merger, Canoo promised to disrupt the entire automotive industry by offering monthly auto subscriptions instead of traditional one-off sales to increase the lifetime value of every customer.
Canoo plans to produce 2 EVs in the next few years: The Lifestyle and the Sport.
The Lifestyle is a fully electric van starting at $34,750 with 250-mile range and up to 250 horsepower. Canoo is already taking preorders and production will begin in late 2022.
The Lifestyle could become a game-changer in the EV space as more people will use their car for things like sleeping, watching tv, and remote working as we transition to a fully autonomous driving future.
EV investors cheered the positive news and sent GOEV stock to as high as $20 until several bad things happened recently.
Instead, Canoo backtracked on its subscription-based strategy and several key executives left the company.
Lack of transparency is a huge problem in the growing EV sector and many investors are terrified to buy GOEV stock right.
10. Lucid Motors (LCID)
Lucid Motors is an American electric vehicle maker that has already begun deliveries of its flagship EV, the Lucid Air.
The Lucid Air starts at a base price of $69,000 with 480 HP and a 406-mile range.
The Lucid Air aims to disrupt the luxury EV market and offer consumers a high-end electric vehicle that turns heads. Lucid Motors also already launching studios all over America to give consumers a first-hand look at the Lucid Air.
Motortrend named the Lucid Air as the 2022 Motortrend car of the year, which is remarkable considering this is Lucid’s very first EV model.
Lucid confirmed over 10,000 reservations for the Lucid Air and the company plans to delivered just over 500 EVs in 2021.
Lucid also launched “Project Gravity” and plans to start producing a complementary EV SUV in 2023 to grab even more market share.
While Tesla is not just a car company, I want to emphasize that Lucid Motors is not just a luxury EV company. Lucid plans to provide energy storage services for both residential and commercial use along with battery park mass production that can serve the aircraft, eVTOL, military, heavy machinery, and other industries.
In my opinion, Lucid Motors is the only EV company that provides serious competition for Tesla in the US EV market.
Lucid Motors has an expressive executive team full of former Tesla and Apple employees led by current CEO Peter Rawlinson who helped design the original Tesla Model S years ago.
Lucid will begin production of the Lucid Air during Q3 2021 at its manufacturing plant in Casa Granda, Arizona. The company set a production goal of 500,000 EVs annually by 2030 but investors should expect just 20,000 EVs produced annually next year in 2022.
What’s exciting about Lucid is its lofty revenue targets that could send LCID stock to the moon. Annual revenue could reach as high as $22 billion by 2026 and the company estimates it will be profitable by 2025.
Once the merger closes, LCID will have 1.6 billion shares outstanding and trade around a market cap of $36 billion. That’s nearly 4% of Tesla’s current market cap, which gives Lucid Motors investors a lot of potential growth opportunities in the future.
Tesla trades at a Price to Sales ratio of 17 so I can easily see LCID stock soaring to over $250 per share in the next 2 to 5 years.
My 2030 LCID stock price prediction is just over $2,000 per share and I believe Lucid Motors is arguably the best long-term investment for investors who wish to retire by 2030.
Where else can you get 100x investment upside with an amazing product backed by some of the best EV engineers and entrepreneurs in the world?
11. Kandi (NASDAQ: KNDI)
Kandi is a Chinese EV maker that sells one of the cheapest EVs in America. Kandi’s k27 and k23 are low budget and affordable electric cars that may sell well through North America.
While KNDI stock is still a speculative EV play, I think there is a ton of upside if Kandi can scale its productions while keeping costs low.
Kandi is one of my favorite cheap EV stocks under $10 that could soar in the future.
12. Faraday Future (FFIE)
Faraday Future is an American EV maker that plans to disrupt the luxury EV market alongside Lucid Motors and Tesla.
The company will produce its flagship vehicle, FF 91, starting in 2021 and will begin full scale production in Q4 2022.
The FF 91 starts at $100,000 with 1050 HP and goes 0 to 60 mph in just 2.4 seconds. FF 91 looks extremely similar to the Lucid Air in terms of power, speed, and interior design.
Faraday projects around $10 billion in 2024 revenue, which gives investors quite a bargain at just $11 per share if things go smoothly.
While most people haven’t talked a lot about Faraday, I believe FFIE stock could soar as high as $500 within the next 3 to 5 years.
13. Arrival (ARVL)
Arrival is a UK-based EV maker with plans to begin producing electric vans and buses in 2022.
The company isn’t generating any revenue yet but received 59,000 preorders according to the latest Q2 2021 earnings update.
A good portion of these preorders came from UPS who preordered 10,000 delivery vehicles with the option to purchase an additional 10,000 EVs. That preorder alone could be worth over $1 billion in revenue.
Arrival’s flagship EV called the Arrival Bus will be the 1st EV to be released by the company with production starting in Q2 2022.
ARVL stock had a rollercoaster ride in 2021 reaching as high as $37 before crashing back down to its original SPAC price of $10. I don’t see much upside in the near future because Arrival stock has a $6+ billion market cap with zero revenue.
A lot of EV SPAC stocks popped during 2021’s EV bubble and Arrival is one of the many casualties. However, I still like Arrival in the long run as a fantastic EV bus and van play.
The company signed an agreement with Uber to produce an EV specifically tailored for ridesharing with production plans in 2023.
Patience with ARVL stock may be rewarded in the future and I have a massive $100+ price target for Arrival stock by 2023. It’s one of my smaller current positions but I will be adding more shares on the dip.
Lucrative contracts with UPS & Uber give Arrival a ton of appeal plus the company will disrupt the European transportation market with its sleek, beautifully designed EVs.
ARVL stock is a serious long-term buy and hold. Patience will be rewarded if things go as planned.
14. Rivian (RIVN)
Rivian is the hottest EV IPO of 2021 that soared during its first week of trading after much-awaited hype.
Rivian plans to produce two flagship vehicles, the R1T truck and R1S SUV. The company has around 55,000 preorders for both vehicles along with a massive 100,000 electric delivery van order from Amazon.
Amazon also holds a 20% stake in the company and could increase the preorder in the future.
After a successful debut on the NASDAQ, RIVN stock soared to as high as $110 with a massive $100+ billion valuation. However, I believe most IPOs are overvalued due to many involved parties selling their stakes during peak hype and excitement.
Rivian does have some impressive plans to hit 1 million annual vehicles produced by 2030, which means RIVN stock definitely has plenty of long-term value.
However, I think RIVN shares are overvalued at the moment and I prefer some other EV plays instead.
15. Polestar (GGPI)
How to Invest in EV Stocks
Here are some of the simple steps you can take to start investing in EV stocks.
Step 1: Pick a Stock
There are literally dozens of new EV makers entering the market plus legacy automakers have announced pledges to produce a majority EV fleet by 2030. The EV industry will get pretty crowded over the next few years but all of these companies should benefit from the shift to renewable energy vehicles.
Step 2: Analyze The Company
When analyzing EV stocks, I look at things like total deliveries, future reservations, future revenue growth, key management, the look and feel of the car, Youtube driving reviews, testimonials from car owners, etc.
Your goal is to figure out which company will produce the best EV in a soon-to-be crowded marketplace. Luckily, you have plenty of resources at your disposal to conduct thorough research including everything from electric vehicle magazines to Youtube channels.
Step 3: Buy The Stock
You need a stock brokerage account to invest in EV stocks. Here’s a list of recommended stock trading apps and brokers for buying and selling EV stocks.
Fidelity Investments is my preferred full service broker for buying and selling stocks in a traditional brokerage account and IRA retirement account. $0 stock trades, 24/7 phone customer support, and an easy to use app are just some of the reasons why I use Fidelity.