Are These The Best Electric Vehicle Stocks To Buy Before Next Month?
Electric vehicle (EV) stocks remain an interesting play in the stock market today. For the most part, this is thanks to the EV industry gaining momentum over the past few years. Notably, this trend continues to accelerate amidst global concerns of carbon emissions. The likes of which stem from conventional combustion engines among other environmental factors. If anything, more governments worldwide are currently looking into the issue on this front. As of earlier this month, President Joe Biden is planning for half of all new U.S. vehicle sales to be electric by 2030. With all of these tailwinds in play, I could see investors turning their radars towards the top EV stocks in the stock market now.
Take Fisker (NYSE: FSR) and Nio (NYSE: NIO) for instance. Both companies are notable names in the global EV trade today. On one hand, Fisker is an upcoming player in the U.S. EV market. The company is currently working with global tech manufacturing company, Foxconn, to develop its EVs.
CEO Henrik Fisker said earlier today that the company’s current partnership is “moving faster than expected”. On the other hand, Nio continues to dominate the Chinese EV market. This is evident as the company posted stellar figures across the board in its second-quarter fiscal last week. In short, the company saw its total revenue skyrocket by 127% year-over-year. With all this activity in the EV industry. could one of these Electric vehicle stocks be top picks in the market now?
Top EV Stocks To Buy [Or Avoid] Right Now
- General Motors Company (NYSE: GM)
- Tesla Inc. (NASDAQ: TSLA)
- Ford Inc. (NYSE: F)
- Xpeng Inc. (NYSE: XPEV)
General Motors Company
General Motors (GM) is a multinational corporation with headquarters in Detroit, Michigan. The company is transitioning to an all-electric future, with its revolutionary Ultium Platform. The platform is part of the company’s plan to offer 30 new EVs globally by 2025. This would be part of its vision to create a world with zero emissions and zero congestion.
The company has allocated a whopping $35 billion to its EV and AV investments. It also boasts over 150,000 employees and aims to have the No. 1 EV market share in North America. GM stock currently trades at $49.08 as of Thursday’s closing bell and is up by over 65% in the past year alone.
Earlier in the month, the company reported strong second-quarter 2021 financials. Notably, revenue for the quarter was $34.2 billion, more than doubling compared to a year earlier. Net income was a cool $2.8 billion compared to a loss of $0.8 billion a year ago. General Motors said that it delivered a strong quarter while it continues to accelerate its EV and AV growth initiatives. It also successfully prioritized production of its highest demand vehicles and gained significant retail market share in the full-size pickup segment in the U.S. With that in mind, is GM stock a top EV stock to buy right now?
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Tesla Inc.
Next on this list, we have Tesla, an EV and clean energy company that is based in Palo Alto, California. The company is also striving to transition the world to sustainable energy with electric cars, solar, and integrated renewable energy solutions. Through its subsidiary, Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the U.S. TSLA stock currently trades at $673.47 as of Thursday’s closing bell and has enjoyed gains of over 75% in the past year.
In late July, the company reported its second-quarter financials. Diving in, it delivered over 200,000 vehicles, achieved an operating margin of 11%, and exceeded $1 billion of GAAP net income for the first time in its history. This is impressive given the supply chain challenges, in particular global semiconductor shortages and port congestions.
It says that due to global vehicle demand at record levels, component supply will have a strong influence on the rate of its delivery growth. Tesla also launched Tesla Vision during the quarter, which will help solve full autonomy in the long run. All things considered, is now the best time to buy TSLA stock?
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Ford Motor Company
Ford is a multinational automobile manufacturer that is also one of the largest automakers in the world. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities, and always-on relationships with customers. Also, through its Ford+ plan, the company will also be converting its lineup of automobiles to EVs in the long run. F stock currently trades at $12.67 as of the end of Thursday’s trading session. On July 28, 2021, the company reported its second-quarter financials.
Firstly, it posted a revenue of $26.8 billion, an increase of 38% year-over-year. Secondly, net income for the quarter was $561 million, or a diluted earnings per share of $0.14. The company also reported that its Mustang Mach-E is already ranking No. 2 in sales among all-electric sport utility vehicles in the U.S., just seven months after shipments to customers began and was recently named EV of the Year by Car and Driver magazine.
Also, its F-150 Lightning, which is an electric version of the most popular vehicle in the U.S., has received 120,000 reservations since its unveiling in May. For these reasons, will you consider adding F stock to your watchlist?
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Xpeng Inc.
Topping off our list today is Xpeng. In brief, the Guangzhou-based EV automaker is another prominent contender in the Chinese EV market. Considering that China is home to the largest EV market globally, auto investors could be eyeing XPEV stock now. As it stands, the company’s shares currently trade at $37.57 as of Thursday’s close. This would be after gaining by over 75% in the past year. Given the rising demand for the company’s “Smart EVs,” some would argue that XPEV stock has more room to grow moving forward.
For one thing, Xpeng appears to be kicking into high gear on the operational front this week. As of yesterday, the company is currently working with the Zhaoqing Municipal Government to expand its production capacity. In detail, Xpeng is looking to double up the annual production capacity of its Zhaoqing plant from 100,000 units to 200,000 units.
The company is aiming to do so via financial and land use support from the local government. Given Xpeng’s overall momentum in terms of EV sales, this move makes sense. From some perspective, the company saw its July vehicle deliveries skyrocket by 228% year-over-year. With Xpeng set to report its second-quarter earnings figures next week, would XPEV stock be a top ev stock on your radar this week?
