EV penny stocks are heavily influenced by the economy, including interest rates, government incentives, and supply chain stability. High inflation or rising borrowing costs can make it harder for these companies to secure funding, while strong economic growth can drive demand for electric vehicles. Traders who monitor global financial trends and sector performance can better anticipate shifts in share price movements. The electric vehicle industry offers diverse investment opportunities beyond Tesla. While these stocks come with varying levels of risk, they all offer potential for significant growth as the automotive industry continues its electric transformation.
Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. VinFast Auto is on track to bring its EV manufacturing facility in India into operation in mid-2025.
Short-term swings tied to earnings, policy shifts, or supply news will test patience, but their long-term potential—rooted in a world moving toward electrification—keeps them trending. Diversifying across these names could balance a portfolio, capturing both growth and resilience. EV stocks are shares of companies involved in the electric vehicle industry.
How does the EV market differ globally?
- Its revenue has grown rapidly, from $22.7 billion in 2020 to over $107 billion in 2024, surpassing Tesla’s $97.7 billion.
- QuantumScape (QS) touts a breakthrough in solid-state lithium metal batteries.
- Rivian is in a great position on this front because the company has been run by its founder, RJ Scaringe, since the very beginning.
- These stocks can experience extreme price swings based on news, hype, or trading volume.
- My selection of top EV stocks is based on analysis of various factors.
- The company is profitable, has been expanding its charging network, and continues to see strong vehicle sales.
Despite these stout sales, its P/S ratio is on the lower end compared to its peers. And that comes after the stock was buoyed by a 65% increase through the first three quarters of 2023. However, despite its mammoth valuation, TSLA trades with notorious volatility. Shares fell over 65% during 2022 as interest rates rose and the tech sector got crushed, all while the company’s CEO, Elon Musk, engaged in a high-profile Twitter takeover. Please note that all market data is delayed by atleast 15 minutes.
Services
The company provides a comprehensive portfolio of charging solutions for various settings, including homes, workplaces, and public spaces. My selection of top EV stocks is based on analysis of various factors. I considered each company’s financial health, including revenue growth, profitability metrics and debt levels. Market position and competitive advantages were also key considerations, as the EV industry is highly competitive and rapidly evolving.
Alternative Energy Stocks to Watch Amid Impacts of Policy Shift
Like the other start-ups on this list, though, FREYR’s future viability is far from assured. It hasn’t generated revenue yet and is incurring operating losses via its research and securing of battery manufacturing agreements. It’s made moves to optimize its spending and liquidity to ensure enough cash runway through 2027.
- The service is run by a battery asset company, with NIO and leading battery maker CATL owning a stake.
- However, as with any resource-based stock, price swings can be extreme.
- Strong performance can attract more investors, but negative news can send shares tumbling fast.
- And a big part of this boom is happening in China, which is expected to account for nearly two-thirds of all EV sales.
Charging infrastructure and ancillary players
QuantumScape already partners with Volkswagen and anticipates to get its first revenues in 2026 through technology license, instead of producing batteries. This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time.
But the shares aren’t excessively priced at 20 times forward earnings. And if the company’s investments in silicon carbide pay off as expected, its massive move since 2020 could be only the beginning. In a list of fairly high-risk stocks, ChargePoint is going to be one of the riskier plays. The company is not currently profitable, and it faces competition from Tesla among others.
If you’re open to high-risk, high-reward plays, it’s worth knowing what’s out there. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
Unlike peers who compete solely on price, Li focuses on quality, spacious interiors, and long-range practicality. Its delivery growth has been explosive, and its financials reflect an uncommon balance of innovation and operating efficiency. With revenue growing nearly 250% over the past five years and new full-size SUV models launching in 2025, Li Auto is no longer a niche player—it’s scaling fast. NIO’s strategy includes its battery-as-a-service endeavor, a subscription purchasing model where buyers lease vehicle batteries. The service is run by a battery asset company, with NIO and leading battery maker CATL owning a stake. One of the main differences between Li Auto and the other companies on this list is that Li Auto’s models allow battery pack charging with electricity or gas.
Is NIO a Good Stock to Buy?
One of the major pain points on electric vehicles is finding a place to plug in when you’re away from home. Its Power Mobile is a mobile charging service that will send a van with a battery bank to juice up your car the same way that AAA will come to fix a flat tire. Relations between the U.S. and China aren’t great right now, so investing in Chinese stocks isn’t exactly on a lot of investors’ radars.
Every major automaker is actively developing or already selling electric vehicles (EVs). Stellantis has emerged as one of the most ambitious legacy automakers when it comes to EV investment. It has already launched electric versions of key models across Europe and is scaling up its EV presence in North America. As one of the first legacy automakers to commit billions to EV development, Ford has made real progress transitioning its lineup. Despite cyclical headwinds, Ford’s scale, brand trust, and manufacturing know-how give it a durable edge.
The average TSLA stock price target of $309 indicates about 11% downside risk from current levels. Auto sales revenues were up 46% year-over-year in the second quarter, and total revenues were up 47%. The company delivered 466,140 cars last quarter, an 83% improvement over the year prior. At a price-to-earnings (P/E) ratio of 86 and a price/sales (P/S) ratio of 12, the company is priced aggressively for even an upstart tech stock. And this is a company with a market cap of close to a trillion dollars.
NIO also offers Battery-as-a-Service (BaaS), a unique subscription model that separates battery cost from vehicle ownership. Despite increased competition from Chinese automakers and slowing domestic demand, Tesla still commands the largest mindshare and infrastructure reach in the EV category. EV sales in 2024, though global volume leadership has shifted to BYD. While pricing pressure and margin compression have affected recent results, Tesla remains one of the most influential forces in the global clean energy transition.
QuantumScape represents a high-risk, high-reward opportunity in the EV space. If successfully commercialized, the Ev stocks to watch company’s solid-state battery technology could revolutionize the EV industry by significantly improving range and charging times. This potential makes QuantumScape attractive for investors seeking groundbreaking EV technology exposure. QuantumScape is a company in the development stage focused on developing and commercializing solid-state lithium-metal batteries for electric vehicles. These next-generation batteries promise higher energy density, faster charging, and improved safety than current lithium-ion batteries.
