Whether you’re an environmentalist, a growth opportunist or a meme stock aficionado, electric vehicle stocks may seem like an enticing addition to your investment portfolio.
As gas prices surged to all-time highs over the last year, so did interest in electric vehicles (EVs).
According to the International Energy Agency, global EV sales doubled in 2021 to a record of 6.6 million vehicles, and continued their strong growth in 2022.
Best-performing EV stocks
| Ticker | Company | Performance (Year) |
|---|---|---|
| NVDA | NVIDIA Corp | 262.49% |
| AMD | Advanced Micro Devices Inc. | 158.83% |
| LI | Li Auto Inc ADR | 77.64% |
| GOOG | Alphabet Inc | 52.56% |
| NXPI | NXP Semiconductors NV | 43.96% |
| GNTX | Gentex Corp. | 29.80% |
| ALV | Autoliv Inc. | 24.11% |
| XPEV | XPeng Inc ADR | 12.30% |
| ADI | Analog Devices Inc. | 7.13% |
| SCCO | Southern Copper Corporation | 5.92% |
| ENS | Enersys | 0.58% |
| TXN | Texas Instruments Inc. | -0.65% |
| STM | ST Microelectronics | -3.68% |
| SWKS | Skyworks Solutions, Inc. | -4.83% |
| CRUS | Cirrus Logic, Inc. | -9.67% |
Source: Finviz. Stock data is current as of March 1, 2024, and is intended solely for informational purposes, not for trading purposes.
What are EV stocks?
Electric vehicle stocks, or EV stocks, include electric vehicle manufacturers, electric battery producers, and companies that make charging stations and electric motors. In a broader sense, EV stocks may also include mining companies and semiconductor companies that produce key EV components.
If you’re looking for electric vehicle stocks, there are several to choose from. However, keep in mind that investing in individual stocks is typically riskier than investing in a well-diversified index funds or exchange-traded fund. And while often stock pickers will look for a strong track record of performance, many EV stocks don’t have one, making the EV market speculative.
The table below shows the 15 best-performing members of the Solactive Electric Vehicles and Future Mobility Index that are also traded on major U.S. exchanges. The stocks are ranked by one-year return.
Traditional automakers making EVs
Electric vehicles aren’t only being produced by new car companies. Legacy car manufacturers such as General Motors, Ford, Toyota and Ferrari all have plans to start producing electric vehicles. Some of these companies are even included in electric vehicle-themed ETFs.
EV stock ETFs
If you’d rather not pick individual electric vehicle stocks to include in your portfolio, ETF’s could be helpful. These ETFs hold a basket of stocks related to electric vehicles, including EV technology such as charging stations and vehicle batteries. One of these funds is the Global X Autonomous & Electric Vehicles ETF (DRIV). DRIV seeks to mirror the performance of the Solactive Autonomous & Electric Vehicles Index, which lists companies in the electric vehicle space.
One drawback of ETF investing is that you don’t get complete control over what you invest in. For instance, while funds such as DRIV do invest in EVs and EV technology, DRIV’s top holdings — Alphabet Inc. (GOOGL), Apple Inc. (AAPL), Qualcomm Inc. (QCOM), Intel Corp. (INTC) and Nvidia Corp. (NVDA) — may come as a surprise.
How to buy EV stocks
If you’re looking to add EV stocks to your portfolio, you’ll need a brokerage account to purchase them. Setting up an account is relatively easy and takes about 15 minutes. Once you fund an account, you can research EV stocks and invest directly from your brokerage account.
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FAQs about Electric Vehicle (EV) Stocks
EV stocks refer to stocks of companies involved in the electric vehicle industry, including manufacturers, battery producers, charging station providers, and semiconductor companies producing key EV components.
Examples of EV stocks include Tesla, NIO, Li Auto, NVIDIA, Advanced Micro Devices (AMD), and Alphabet (Google).
Interest in EV stocks has surged due to increasing global demand for electric vehicles, driven by factors such as rising gas prices, environmental concerns, and technological advancements in the EV sector.
To invest in EV stocks, you’ll need to open a brokerage account, conduct research on individual companies or EV-themed ETFs, and then purchase the stocks through your brokerage account.
Investing in EV stocks can be risky due to the volatility of the EV market and the speculative nature of many companies in the sector. It’s important to diversify your portfolio and conduct thorough research before investing in EV stocks.
