The best electric vehicle companies to watch are those with the longest, most stable path to growth.
The potential for electric vehicles is immense. At the same time, there is still a long way to go if the target of two billion by 2050 is to be achieved.
Furthermore, now that renewable energy costs have come down significantly, it’s arguably the best time for investors to take a serious look to see which are the best electric vehicle companies to watch.
EV companies are stocks to watch this year. Supply chain factors, macroeconomic headwinds and other external pressures have weighed down the industry prospects.
However, if these pressures abate, EV companies could be poised for significant rallies throughout the coming year. EV stocks are trending, so investors should research and stay up-to-date on developments to find the best long-term investment opportunities in this space.
|F||Ford Motor Co.||$12.72|
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Over the last year, shares of EV maker Tesla (NASDAQ:TSLA) have decreased sharply.
While numerous possible explanations exist for the slide in stock prices, such as rising rates and slowing sales in China, or even Elon Musk’s purchase of Twitter, the correction presents an excellent opportunity for TSLA stock investors.
In essence, market forces have pushed Tesla’s share price down to the point that is more in line with its current performance and potential prospects.
Tesla is in a unique position when it comes to its massive total addressable market. The all-electric nature of the vehicles allows Tesla to focus solely on growing the EV market, with no platform crossover that would lead to cannibalization.
This focus has benefited Tesla’s brand recognition and allowed them to build an infrastructure for continued success. Its management remains optimistic about the company’s future, expecting delivery growth of 50% annually over the long run.
Ford Motor Co. (F)
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Ford Motor Co. (NYSE:F) has taken the lead in the ongoing electric vehicle revolution, investing up to $20 billion towards electrification.
Its lineup includes reimagined models of fan favorites like the F-150 and Mustang, while a new dedicated subsidiary and team ensure that production and assembly are poised to make an impact.
Ford’s stock price has dropped by more than 47%, over the last year enabling investors to jump in at a much lower cost than before. Plus, with a dividend yield of 4.4%, there’s plenty of incentive to back the brand’s bold activities in the industry.
Ford proves that it values sustainability initiatives and understands the importance of transitioning to an electrified future. The US automaker more than doubled its EV sales last year, earning placing it just behind Tesla in the EV race. Ford sold 61,575 EVs, a 126% bump from last year with 2023 expected to be even better than before.
Albemarle Corp. (ALB)
Albemarle Corp. (NYSE:ALB) is poised to be a major player in the lithium-based EV revolution.
Its high proportion of lithium revenues and market prices will make it a great opportunity for investors who want to capitalize on the industry’s growth going into 2023. The company has established itself as a reliable provider of lithium, having grown its sales by hefty margins each quarter.
Albemarle is worth considering for investors making a list of the best electric vehicle companies to watch.
Albemarle’s success story over the past four consecutive quarters is truly special. It surpassed $2 billion in total revenue for the first time in its history and rewarded its investors with a healthy dividend to boot! This makes investing in Albemarle a very attractive proposition.
There have been some doubts about the sustainability of their growth, but the company has shown that its profits are likely to continue growing well into the future. It boasts a consistently growing EBITDA margin of over 27% in the past five years.
Lithium Americas (LAC)
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Lithium Americas (NYSE:LAC) is a rare standout at the top of its industry in a volatile market fraught with frequent surprises.
Due to the massive potential of its Thacker Pass mine in Nevada, analysts are overwhelmingly bullish on its potential. Indeed, as one of the world’s largest lithium producers, Lithium Americas stands ready to provide impressive returns down the line.
Boasting an impressive 179.4 megatonnes of LCE reserves and an expected life of nearly 50 years, it should provide enough to meet our needs for many years. With operations also planned in Argentina and anticipated production starting at 40,000 tonnes of LCE from 2022 onwards, Lithium Americas is set to grow rapidly over the next couple of years.
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Nio (NYSE:NIO) stock has experienced a correction of almost 61% in the last year. This drop was caused by rising coronavirus cases in China and economic growth worries.
Despite the challenging environment, Nio continued to deliver robust growth in deliveries. This shows that the fundamentals of this technology company remain strong. Looking ahead to 2023, various catalysts suggest that Nio stock is on track for a strong resurgence as market sentiment improves.
The fourth quarter was a record-breaking for Nio, with 40,052 vehicle deliveries, up 60% year on year. This pattern of strong delivery growth is likely to sustain in 2023 due to the company’s ambitious plans.
Fueled by the upcoming launch of five new models in the year’s first half and its expansion into 25 countries by 2025, the trend looks to continue for the foreseeable future. Nio is getting serious about increasing its presence in Europe and broadening its portfolio, initiatives that investors will only welcome.
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Polestar (NASDAQ:PSNY) has looked highly attractive recently, with the stock down more than 38% over the last 6 months.
Despite this correction, optimism is beginning to grow around PSNY as business developments remain positive. Investors are confident this stock could be well on its way to a reversal rally as the price likely bottoms out.
Investors have widely recognized the ongoing growth of Polestar. Last year, the company delivered 51,500 cars, representing a remarkable 80% increase from the same period last year. This suggests that future targets are achievable; including delivering 80,000 cars in 2023.
With the launch of the new Polestar 3 and the forthcoming release of the Polestar 4, these ambitious goals seem within reach. Moreover, it is fully financed through 2023 as it expands its presence across more than 25 different global markets.
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The trend towards EVs is only continuing to accelerate, and companies like ChargePoint (NYSE:CHPT) are tailor-made to benefit from this trend.
The electric mobility revolution is well on its way, and ChargePoint is leading the charge. The cumulative investment figures for the United States and Europe point to substantial growth across the board; an estimated $60 billion by 2030 and an even more staggering $192 billion by 2040.
CHPT saw strong growth over the past 12 months, with third-quarter revenue up an impressive 93% year-over-year. Both networked charging systems and subscription revenue witnessed significant bumps compared to the same period a year ago, with the former jumping an incredible 105%.
This impressive show of resilience during challenging economic times will make investors confident about CHPT’s long-term prospects.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.