Lucid Group Inc., Fisker Inc., and Hyliion Holdings Corp. Electric car companies are at the forefront of revenue growth as rising interest rates and pandemic restrictions slow demand globally, including in China, the world’s largest EV market.

We look at the top three electric car stocks in three categories: best value, fastest growth, and best performance. All data is as of April 11. A key benchmark, the CraneShares Electric Vehicle and Future Mobility ETF (KARS), has fallen 17% over the past 12 months, compared to a 7% decline in the Russell 1000 index.

Best-value electric car stock

These are the electric car stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, it can serve as a rough measure of business value. A business with high sales can ultimately produce more profits when it realizes (or returns) a profit. The price-to-sales ratio shows how much you’re paying for a stock for every dollar it produces.

Best-value electric car stock
price ($) Market Cap ($B) 12-month trailing P/S ratio
NIU Technology (NIU) 3.71 0.3 0.6
Proterra Inc. (PTRA) 1.26 0.3 1.0
World a. Ltd. (yes) 57.97 84.4 1.4

Source: YCharts

  • Niu Technology: Niu designs and manufactures electric scooters, motorcycles and bikes for urban commuting. The company also offers spare parts, accessories and maintenance services.
  • Proterra Inc.: Proterra offers electric vehicle infrastructure in three distinct segments: Proterra Powered, Proterra Energy, and Proterra Transit. The company produces electric vehicle drivetrains and batteries for commercial applications, end-to-end charging technology, and electric transit buses. In January, the company produced its first Proterra-powered EV batteries at a new battery manufacturing plant in South Carolina. Proterra also said CEO Gareth Joyce was appointed to President Joe Biden’s Export Council, a committee focused on international trade policy.
  • BYD Co.: BYD develops and manufactures electric vehicles and similar products. The company sells lithium-ion and nickel batteries for phones, power tools and electric vehicles. BYD also produces rail transit equipment.

The fastest growing electric car stock

These are the electric car stocks with the highest YOY sales growth for the most recent quarter. Growing sales can help investors identify companies that are able to grow revenue organically or through other means and find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business may significantly impact earnings per share.

However, sales growth can also be a potentially misleading measure of a business’s strength because growing sales can be detrimental to money-losing businesses if the company doesn’t have plans to turn a profit.

Fastest growing electric car stocks
price ($) Market Cap ($B) Revenue Growth (%)
Lucid Group Inc. (LCID) 8.03 14.7 876
Fisker Inc. (FSR) 5.51 1.8 646
Hyliion Holdings Corporation (HYLN) 1.82 0.3 447

Source: YCharts

  • Lucid Group Inc.: Lucid produces luxury electric vehicles such as the flagship Lucid Air and the soon-to-be-released Lucid Gravity. It said on February 22 that fourth-quarter net income fell by half to $473 million. Lucid produced 3,493 vehicles in Q4, up 53% from the previous quarter.
  • Fisker Inc.: Fisker is an electric vehicle manufacturer that plans to release its first line of Fisker Ocean vehicles this year. On February 23, Fisker named ChargePoint Holdings its North American partner for public charging stations with more than 210,000 active ports for Fisker EV owners.
  • Hyliion Holdings Corporation: Hyliion Holdings sells electrified powertrain components for commercial vehicles through subsidiaries. Hyliion completed the acquisition of KARNO Generator Technology from GE Additive in November for $15 million in cash and $16 million in stock. KARNO technology is expected to be 20% more efficient than conventional generators. The company has also collaborated with Hyzon Motors to develop a fuel cell-powered vehicle that will integrate Hyliion’s electrified powertrain into a Peterbilt chassis.

Electric car stocks with the best performance

These are the electric car stocks that had the smallest total return declines over the last 12 months among the companies we looked at.

Electric car stocks with the best performance
price ($) Market Cap ($B) Total return after 12-months (%)
indie Semiconductor Inc. (INDI) 9.29 1.3 32
World a. Ltd. (yes) 57.97 84.4 -3
Li Auto Inc. (LI) 23.63 23.1 -9
Russell 1000 N/A N/A -7
KraneShares Electric Vehicle and Future Mobility ETF (KARS) N/A N/A -17

Source: YCharts

  • Indie Semiconductor Inc.: indie is an automotive technology company that supplies semiconductors for electric vehicle applications such as autonomous driving and advanced driver assistance. Last June, Indy joined the Russell 2000 index after rebuilding the annual index. The company also said in February that it acquired Silicon Radar GmbH, a German manufacturer of system-on-chips (SoC) specialized for automotive applications.
  • BYD a. Ltd.: View company details.
  • Li Auto Inc.: Ltd. is auto A Chinese developer and manufacturer of smart EVs whose main product is the Li ONE Electric Sports Utility Vehicle (SUV). The company has also been selling charging stalls and internet connection services for vehicles. Li Auto said on December 9 that President Yanan Shen will resign on January 1, 2023 and will be replaced by Chief Engineer Donggui Ma. Lee Auto surpassed March delivery expectations with deliveries of 20,823 vehicles, an 89% increase over March 2022.

Benefits of electric car stocks

There are many benefits to investing in electric vehicle stocks after the 2020 presidential election. EV companies are expected to create more than 1 million jobs. If American-made electricity is included in the clean energy industry, it could also benefit electric vehicle companies. There are also potential tax credits, but with the April 18 deadline approaching and stricter guidelines for the $7,500 qualifying credit, many previously eligible EVs will not continue to receive tax incentives.

The future of electric vehicles and electric car stocks looks promising. In about a decade, one in every five cars sold is expected to be electric. By 2030, electric vehicles will account for half of car sales. Electric vehicles support both technological advances and pollution concerns.

Investors looking to diversify can look for exchange-traded funds (ETFs) that invest in a range of electric vehicle stocks to benefit from a range of electric car industry developments. These types of funds can help mitigate risk and provide exposure to a rapidly growing sector.

For example, the iShares Self-Driving EV and Tech ETF (IDRV) has exposure to various industries such as electric vehicles and information technology. It also has a mix of auto and tech stocks. Some of IDRV’s top holdings are Tesla, Apple ( AAPL ), and Toyota ( TM ).

Electric car stock analysis

The electric car market is expected to grow at a compound annual rate (CAGR) of 25.6% from 2019 to 2026.

Investors should consider market capitalization, sales and earnings growth, cash flow and production costs before investing in this sector. Also, electric car manufacturing involves the use of cutting-edge technology, so investors should consider the ability of electric car companies to meet such technical standards.

Finding the top electric car stocks to buy should extend beyond the stocks of automobile manufacturers like front-runner Tesla. Investors should search for and analyze stocks of companies that make electronic safety devices, connector systems, batteries and other components for electric vehicles.

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