- With governments worldwide spending money on developing renewable energy sources, adoption of electric vehicles is sure to grow.
- Tesla announced that it was cutting prices in China, and many analysts are concerned about what this means for electric vehicle demand.
- There are many ways to invest in electric vehicles, including automakers, battery companies, charging stations, even precious metals.
With oil prices all over the map this year, people have every reason to turn to electric vehicles (EVs). However, the mounting concerns of a global recession could impact every company as consumer sentiment wanes over what’s next for the economy.
Tesla recently announced that they were cutting prices in China due to softening demand and concerns over a recession. There are additional concerns about what this will mean for the demand for EVs as fears of a global recession continue to impact the stock market.
So, are electric car stocks a buy right now?
What are the best electric cars in 2022?
When it comes to the top electric cars on the market, we looked at expert suggestions and created a list of this year’s best EVs.
In no particular order, the top options going into Winter 2022 include:
- 2022 Polestar 2
- 2023 Nissan Leaf
- 2022 Tesla Model 3
- 2023 Chevrolet Bolt EV
- 2022 Kia Niro EV
- 2023 Mini Electric Hardtop
While everyone associates Tesla with electric cars, and likely assumes they’re the best on the market, there are many competitors climbing the ranks. This presents multiple opportunities to invest in this industry moving forward.
How to invest in electric cars
There are various ways you can invest in electric cars. The options include:
- Companies that specialize in making electric cars
- Companies that make batteries for electric vehicles
- Suppliers of EV battery components
- Companies that make charging stations for electric cars
But which companies should you invest in? This depends on what kind of investor you want to be. Alas, when demand for EVs increases, all of the companies in this industry benefit.
What are the best EV stocks right now?
There are many stocks worth looking into, as you review these picks, keep in mind that electric car stocks haven’t outperformed the market lately due to concerns over an economic slowdown that could hurt demand in the EV market. EVs are still viewed as a luxury, even though retail prices have gotten much more competitive, especially when consumers factor in the price of maintenance and fuel.
Additionally, it’s worth paying extra attention to startups in this space as they attempt to ramp up production. Here are a few noteworthy electric car stocks you should know about.
It’s impossible not to include the brand synonymous with the market. Tesla remains in the news for various reasons, including recent earnings to the hype about a humanoid robot.
Even though the stock has been down lately for different reasons, it’s still a stock worth keeping an eye on.
General Motors (GM)
In a surprising pivot, GM recently announced a new EV energy venture that would allow them to compete with Tesla when it comes to energy management.
GM thinks the energy storage and management market potential is around $120 to $150 billion. Consequently, the automaker is now launching its Ultium Charge 360 public charging stations along with Ultium Home and Ultimum Commercial services.
The company will offer storage batteries, solar panels, and hydrogen fuel cells.
This company is one of the leaders in the development of solid-state batteries. The hope is that they can produce them on a mass scale one day.
Analysts will pay attention to the company’s next earnings report to see how the next generation of cutting-edge batteries performs. The batteries leverage lithium-metal technology to charge a vehicle to about 80% of its full capacity in roughly 15 minutes.
Rivian Automotive Inc. (RIVN)
Rivian was the first company to market an electric pickup truck. The company recently had an issue with recalling vehicles, but it claims that all of these cars have been repaired.
This Amazon-backed company has made about 13,000 trucks since production started at the end of 2021.
ChargePoint Holdings Inc. (CHPT)
ChargePoint operates over 18,000 charging stations and allows you to invest in electric cars without a specific manufacturer.
Shares have recently decreased as there are concerns over the future demand for EVs. However, the company won’t release its earnings report until December.
Being one of the largest lithium miners in the world puts this company in a solid position to benefit from the EV market.
Since lithium is used for everything from EV batteries to energy storage systems, Albemarle will benefit from electric cars as they become more popular. However, lithium stocks could face issues if demand for EVs decreases due to economic concerns.
Lucid Group, Inc. (LCID)
Lucid produces luxury EVs, which is a market that could be potentially lucrative one day. With management from Tesla, the company is focused on the higher end of the EV market.
This company has about $3.5 billion in potential sales from current reservations. It produced 2,282 vehicles in Q3 of 2022 and also announced the opening of its first Middle Eastern showroom in Saudi Arabia.
Additionally, the Saudi government has agreed to purchase about 50,000 Lucid EVs over the next decade/
What’s next for electric car stocks?
Energy management could be the next competitive market for this space. However, there are still concerns about how the economy will impact the demand for EVs moving forward.
Concerns of a possible recession could lead to weaker demand for EVs and other luxury items.
Elon Musk recently stated that he believes most people don’t think it’s wise to purchase a gasoline car at this point because the residual value will be low. However, the jury is still out on this logic, as EVs have a long way to go before mass adoption.
Yet, EV sales only accounted for 5.34% of the total auto market. This is either a sign that there’s room to grow or that there’s still hesitancy around making the switch. More than likely, it’s both, as the market inevitably tips further toward electric vehicles.
Should you buy electric car stocks?
There’s a debate on whether the European energy crisis will lead to more people switching to renewable energy sources in general.
What we do know is that countries are introducing laws to help fight climate change. Governments worldwide are investing significant amounts of money into developing greener energy sources.
The U.S. government passed the Inflation Reduction Act into law this summer. This has further incentivized companies to develop renewable energy sources and EVs.
Regarding consumer spending, some of these incentives really do push users toward EVs. The Inflation Reduction Act includes a $7,500 tax credit for purchasing a new EV and $4,000 for used EVs.
When we evaluated Tesla’s stock, we looked at how much revenue the company was making from selling the regulatory credits that it earns from governments. As the world looks to develop renewable energy sources and reduce carbon emissions, the future looks bright for EV stocks.
However, you must factor the current economy into how you invest your money since the recent inflation data has added more volatility to an already turbulent stock market.
How should you be investing?
Electric vehicles might be the future, but most investors think in the present, namely our pending global recession. Most investors shy away from growth stocks because discretionary consumer spending declines during an economic downturn.
You can invest in a greener future with Q.ai’s Clean Tech Kit. This kit makes investing in the electric vehicle industry simpler. You’ll invest in an industry you believe in without the need to constantly track the prices and news as the stock prices fluctuate.
As governments worldwide look to introduce new laws to support the reduction of carbon emissions and encourage the development of renewable energy sources, there could be an increased demand in this space.
That said, the electric car market needs more lithium mines to open globally to keep pace with demand. For this reason, many investors are looking to our Precious Metals Kit, as precious metals continue to take on a whole new light. Investing in themed kits diversifies your portfolio across entire industries, as opposed to purchasing individual stocks, which could leave investors holding the wrong securities, even if they have the right idea about EVs.
Download Q.ai today for access to AI-powered investment strategies. When you deposit $100, we’ll add an additional $100 to your account.