You Will Want to Add These 5 EV Stocks Your Watch List Now

How to capitalize on the rapidly expanding electric vehicle sector

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The electric vehicle (EV) market has been put in the spotlight by stock investors. It is a new industry and there is a lot of speculation about which EV company will be dominant in the future. So far, Tesla (TSLA) is the most dominant in the industry because of its top-tier technology and ability to scale production. Competitors such as Ford (F) and General Motors (GM) are primarily selling gas cars but are slowly starting to sell more electric cars. Tesla’s stock valuation has skyrocketed as investors pile into what is believed to be the future of the car industry. Tesla’s market cap is larger than both Ford and General Motors combined.

1. Tesla

It is obvious that Tesla Inc (NASDAQ:TSLA) is the most dominant EV producer in the world. Tesla's production is skyrocketing year-over-year, and Elon Musk continues to scale by building new factories around the world. Manufacturing is one of the biggest hurdles that automakers have to overcome when it comes to electric vehicles, and Tesla has mastered the job and is constantly improving.

Tesla's share price may be considered overvalued by some fundamental analysts, but short-term price movements are driven by supply and demand rather than fundamentals. Analysts find that Tesla has a larger market capitalization than other automakers like Ford, which has sold many more vehicles than Tesla. Ford delivered over 3 million vehicles in 2021 while Tesla delivered about 900,000. Tesla's market capitalization exceeds $1 trillion, while Ford's is a little under $60 billion. The free cash flow of Tesla has grown from $2 million in 2018 to $3 billion in 2021. That means it has gone from losing $2 million per year in cash flow to generating more than $3 billion per year. This growth is incredible, and it's reflected in the stock price in a way that some disagree.

2. Ford Motor Company

In 2021, Ford Motor Company (NYSE:F) sold 3.9 million vehicles worldwide, including 27,140 electric vehicles. According to the CEO, Ford plans to increase electric vehicle production to 600,000 units by 2023. Although Ford is still far from matching Tesla's electric vehicle sales, overall, it is still selling more cars and generating more revenue. Ford generated more than $136 billion in sales in 2021 alone, 2.5 times more than Tesla's roughly $53 billion in revenue. The real question is how many people will convert to electric vehicles in the future. Currently, Tesla has an advantage when it comes to selling electric cars. If Ford can ramp up its production of electric vehicles to keep up with Tesla, it has a good chance of becoming a leading contender in the industry.

3. NIO

Nio Inc - ADR (NYSE:NIO) is a Chinese electric vehicle manufacturing company headquartered in Shanghai. It also participates in the FIA Formula E Championship, a motorsport championship dedicated to electric vehicles. In 2021, NIO delivered more than 91,000 vehicles, making it a strong competitor in the industry. Its NIO Pilot technology is a level 2 semi-autonomous system that offers advanced driver assistance systems. This type of technology can provide features like lane-keeping assist, adaptive cruise control, and emergency braking.

4. General Motors

General Motors Company (NYSE:GM) is the largest automobile manufacturer based in the United States and one of the largest automotive manufacturers in the world. It delivered more than 400,000 EVs in 2021 alone, making it a serious contender in the EV industry. General Motors generated more than $127 billion in revenue in 2021, barely beaten by Ford.

GM plans to launch 30 new electric vehicle models by 2025. GM makes cars under brands such as Chevrolet, Buick, Cadillac, and GMC. General Motors has already started shipping the Hummer EV pickup truck and the BrightDrop EV600 utility vehicle. While GM is still far behind Tesla in the EV industry, its valuation is much lower making it an attractive investment going forward.

5. Rivian

Rivian Automotive Inc (NASDAQ:RIVN) is an American electric vehicle company that primarily manufactures SUVs. It is backed by Ford and Amazon, which increases its investors’ confidence that the company will survive in the new EV industry. The company started delivering R1T pickup trucks in 2021, but only delivered a total of 920 vehicles during the year. Rivian still has some ways to catch up with deliveries compared to its competitors.

Other projects the company is pursuing include building a proprietary charging network in the United States and Canada by 2023. As demand for electric vehicles increases, more charging stations will be needed. This venture could pay big dividends for Rivian in the future as demand for electric vehicles continues to grow.

 




 
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