The global transportation sector is shifting from the internal combustion engine to electric vehicles. The United States aims to have half of all new car sales be electric by 2030. This is a huge target considering that electric car sales made up only about 4% of total car sales in the US in 2021. With nearly 15 million new cars sold in In the US last year, electric vehicles and the companies that make them had a huge growth opportunity.
Here are the top three electric vehicle stocks you should consider buying over the long term to take advantage of this trend.
1. Lucid group
There is a lot to like about the electric car maker Lucid Group (NASDAQ: LCID). The company’s vehicles offer an industry-leading range thanks to superior battery technology. Attractive features, design and technology helped Lucid Air win an award MotorTrend Car of the Year award. The company has more than 17,000 Lucid Air reservations. Positive reviews and a backlog of good bookings indicate a positive customer response that bodes well for Lucid’s long-term growth.
Most importantly, Lucid not only makes great cars, but it’s also progressing well with its delivery plans. The company expects to deliver around 20,000 vehicles this year, rising to 50,000 vehicles in 2023. Moreover, it recently announced its plans to set up a factory in Saudi Arabia. This development reaffirmed Lucid’s plans to enter the Middle East and European markets in 2022.
In terms of new models, the company plans to launch three new versions of the Lucid Air in 2022. It plans to launch an SUV called Gravity in 2023. The stock Lucid could be a great addition to your EV portfolio in 2022.
2. Ford Motor Company
Ford Motor Company (NYSE: F) It emerged as one of the favorite stocks of EV investors last year. The stock is up 136% in 2021. Moreover, it has continued its rally in the new year and is already up 18% so far in January. There are good reasons behind the stock’s sharp rise.
The number one main reason for Ford’s recent impressive rally is the company’s focus on electric vehicles. Ford is looking to increase its global production capacity of electric vehicles to 600,000 units by 2023. Moreover, it aims to have 40% of its sales electric by 2030. Demand for electric vehicles is currently outstripping supply, and that may be the case for Several years to come. The shift toward electric vehicles could help Ford generate higher profit margins than it does now. Government incentives for electric vehicles benefit electric car makers.
The early customer response to Ford’s electric models is also very positive. Its upcoming electric truck, the F-150 Lightning, already has 200,000 reservations. Finally, Ford had a strong performance last year despite supply chain constraints.
Ford’s long-term plans in the electrical sector, its solid customer base, and rich automotive sector experience put it in a good position for the long term.
3. The world
While the US is moving quickly to electrify the transportation sector, China appears to be moving even faster. In 2021, nearly 9% of vehicle sales in the country were electric. The Asian country also appears to be the leader in absolute numbers. Of the 6.3 million electric vehicles sold globally in 2021, about 3 million were sold in China. It makes sense to include the stock of China’s largest electric vehicle maker Globalism (OTC: Yes) (OTC: YES.F) In your electrical wallet.
The company captured the highest market share for add-on vehicles in China in December. Even when it comes to all-electric cars, BYD’s share was third. BYD sold 92,823 vehicles in December, including 48,317 all-electric vehicles. in comparison, Tesla 70,847 electric cars were sold in China in December.
BYD is rapidly increasing its electric vehicle shipments. The stock is trading at a much more attractive valuation than most other electric vehicle stocks at the moment. Overall, the BYD stock makes a great addition to your electric vehicle portfolio.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.