10 Best EV Stocks of 2023

EV stocks are set to explode once more consumers embrace this new technology and shift towards eco-friendly cars, trucks, and SUVs. Over the past decade, the EV revolution has surged, reshaping the automotive industry, reimagining our transportation systems, and capturing the imaginations of both seasoned investors and newcomers alike.

As we delve into the electrifying world of EV stocks, it’s crucial to acknowledge the astounding growth of the electric car sector.

In 2020, EVs accounted for approximately 3% of global car sales, and that figure is projected to skyrocket to a staggering 35% by 2040.

Source: Bloomberg.com

This seismic shift towards electric mobility is fueled by numerous factors, including advancements in battery technology, environmental concerns, government incentives, and consumer demand for sustainable transportation options.

Best Electric Car Stocks Compared

We’re currently in the early stages of the EV boom and there are dozens of great EV stocks to buy right now. However, many electric vehicle companies are unprofitable and could go bankrupt over the next few years. We put together a list of several EV stock comparisons to help you determine which EV stocks you want to invest in:

Top EV Stocks by Market Cap

Here’s a comparison chart of the best EV stocks for the long term by market cap:

Company (Ticker)Last PriceMarket CapP/S Ratio
Tesla (TSLA)$244.88767.3B9.89
BYD (BYDDF)$31.4298B1.28
VInfast (VFS)$15.6336.5B73.63
Rivian (TLA)$20.5919.5B
Nio (NIO)$8.5317B
Xpeng (XPEV)$16.4416B
Lucid Motors (LCID)$5.1111.7B
Fisker (FSR)$5.631.9B
Canoo (GOEV)$0.45287.5M

Top EV Stocks by Revenue

Here is a list of the best electric vehicle stocks compared based on TTM revenue.

Company (Ticker)TTM Revenue
Tesla (TSLA)94.03B
Nio (NIO)6.08B
Xpeng (XPEV)2.99B
Rivian (RIVN)2.98B
Lucid (LCID)753M

Top EV Stocks by P/S Ratio

The P/S Ratio is an easy way to find out which EV stocks are trading at a good price based on a company’s market cap divided by TTM’s revenue.

Company (Ticker)P/S Ratio
Vinfast (VFS)73.63
Lucid (LCID)14.02
Tesla (TSLA)9.89
Rivian (RIVN)7.35
Xpeng (XPEV)5.60
NIO (NIO)2.64

Best EV Stocks Reviewed

1. Tesla (TSLA)

Key Stats

  • Market Cap: $838 billion
  • TTM Revenue: $94 billion
  • P/E Ratio: 75.93
  • P/S Ratio: 9.89
  • 5 Year CAGR: 69%

Analysis

Tesla is currently the undisputed king of the electric car industry. Tesla CEO Elon Musk grew Tesla into a massive energy & software company over the last decade.

Since IPO, Tesla stock is up over 20,000% and has created thousands of “Teslanaires” who obsess over the company’s trajectory of Elon Musk’s X.com (formerly known as Twitter).

The company sold 1.3 million electric cars and made $81 billion in revenue in 2022.

Tesla produces 5 EV models: the Model 3, the Model Y, the Model S, the Model X, and the Cybertruck.

Tesla Model 3
Tesla Model 3 (Source: Tesla.com)
Tesla Model Y
Tesla Model Y (Source: Tesla.com)
Tesla Model S
Tesla Model S (Source: Tesla.com)
Tesla Model X
Tesla Model X (Source: Tesla.com)
Tesla Cybertruck
Tesla Cybertruck (Source: BusinessInsider.com)

According to Caranddriver, the Model Y is 4th bestselling car in the world after taking the #1 spot in Q1 2023.

Tesla is planning the Cybertruck in 2023 and currently has over 1.5 million preorders reservations!

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.

Tesla is one of the best hypergrowth stocks to hold with its industry leading 9.6% operating margins, massive $22 billion cash on hand, and $7.5 billion in annual free cash flow. It’s no surprise that TSLA stock has almost doubled in 2023 with more upside potential in the future.

2. Lucid Motors (LCID)

Key Stats

  • Market Cap: $13 billion
  • TTM Revenue: $765 million
  • P/S Ratio: 14

Analysis

Lucid Motors is an American EV maker that produces its flagship electric car: The Lucid Air.

Lucid Air

The company sold over 1,300 Lucid Airs in total and is projected to deliver 6,000 to 7,000 EVs in 2022.

Lucid is in its initial growth phase right now so the company isn’t profitable at the moment. The company slashed its price to boost demand and suffers from a high cash burn rate as it scales production and deliveries.

LCID stock is relatively cheaper at $6 when compared to a more expensive stock like Tesla. However, Lucid could struggle in the short run during a high inflationary environment..

My 2025 Lucid stock price prediction is $150 per share. My 2030 LCID stock price prediction is pushing towards $300 but I believe Lucid Motors is arguably the best long-term investment for investors who wish to retire by 2030.

Learn More: Should You Buy Lucid Motors Stock?

Nio (NIO)

Nio is the best Chinese EV stock to buy right now because many people believe it’s the “Tesla of China”.

Learn More: Is Nio Stock a Good Buy?

Nio Stock Price Prediction for 2025: $200

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.

YouTube video

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.

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.

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.

Fisker Ocean

The Fisker Ocean has over 17,000 preorders according to CEO Henrik Fisker who regularly posts updates on his Twitter account, @henrikfisker.

https://twitter.com/henrikfisker/status/1409828416971489285

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.

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.

Faraday Future (FFIE)

YouTube video

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.

Source: FF.com

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.

Rivian (RIVN)

YouTube video

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.

Polestar (GGPI)

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 √Čtienne 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.

 
 
 
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Frequently Asked Questions

There are several promising EV stocks to consider, including Tesla (TSLA), NIO Inc. (NIO), and Rivian Automotive (RIVN). However, the best EV stock for you depends on your investment goals, risk tolerance, and research. It’s essential to conduct thorough research and consider factors like company financials, growth potential, and industry trends before making a decision.

Tesla remains a significant player in the EV industry, and its stock has shown remarkable growth over the years. However, whether it’s a good investment for you depends on your individual circumstances. Keep in mind that Tesla’s stock can be volatile, and you should evaluate it based on your risk tolerance and long-term investment goals.

To evaluate an EV company’s financial health, you should examine key financial metrics like revenue growth, profitability, and debt levels. Additionally, consider their cash flow and balance sheet strength. Reading their quarterly and annual reports, listening to earnings calls, and reviewing analyst reports can provide valuable insights into a company’s financial status.

Government incentives and policies can significantly impact EV stocks. Many governments around the world offer incentives such as tax credits, rebates, and infrastructure investments to promote electric vehicles. Changes in these policies can influence the demand for EVs and, consequently, the performance of EV stocks. Stay informed about government initiatives in your region and how they may affect the EV market.

Investing in EV stocks carries certain risks, including market volatility, competition, regulatory changes, and supply chain disruptions. It’s essential to diversify your portfolio and consider your risk tolerance when investing in individual stocks. Long-term success in the EV sector may require patience and a well-balanced investment strategy.

Investing in EV-related exchange-traded funds (ETFs) can be a more diversified and less risky approach compared to individual stocks. EV ETFs typically hold a basket of stocks in the electric vehicle industry, spreading risk across multiple companies. This approach can provide exposure to the sector without relying on the success of a single company.


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