For Years the Coming Electric Vehicle Boom Has Been Just Beyond the Horizon
Fears of how climate change will disrupt our world have led countries and cities worldwide to begin planning for the end of gas-powered cars.
From generous tax credits for electric vehicles to the eventual outright banning of cars with internal combustion engines, there are a number of reasons why electric vehicles will become more prevalent. Investors that can identify those companies that will emerge as electric vehicle leaders should be handsomely rewarded.
Below are four companies involved in the electric vehicle industry whose stock should return outsized gains in the years to come.
The world’s most popular electric vehicle company has been in a downturn that’s lasted for over a year; the stock is down 66% from its November 2021 highs, thanks to a combination of disappointing operating results and a market that turned from growth stocks to value stocks. If one believes that Tesla can continue to grow revenues while simultaneously fending off competitors, the current valuation is attractive and could provide outsized returns when the market recovers.
Shares of Tesla closed trading today at $116.99 per share, down -2.32% on the day. YTD, TSLA stock is up +8.22%.
Learn more about Tesla: Website | Investor Deck | TSLA Chart
2. Blink Charging (NASDAQ: BLNK)
Before we can fully transition to electric vehicles, there needs to be an abundance of charging stations, in the same way, there are countless gas stations. Enter Blink Charging provides charging equipment and charging services for the U.S. electric vehicle fleet. Revenue is growing fast at the company, with FY22 revenues expected to be 175% higher than FY2021, while FY2023 is projected to grow an additional 65% from FY22 levels.
Shares of Blink Charging last traded at $12.02 per share, up +2.91% on the day. YTD, BLNK stock is up +9.77%.
Learn more about Blink Charging: Website | Investor Deck | BLNK Chart
Also Read: Stuff Your Christmas Stockings With These 3 Consumer Good Stocks
3. Lithium Americas (NYSE: LAC)
Another option for those seeking to invest in the growing demand for lithium is Lithium Americas Corp. Thanks to the soaring demand for electric vehicles, the company stands to benefit from expected lithium shortages in the years to come. The company operates two divisions, one in Nevada and the other in Argentina. There’s a plan to separate the divisions into separate companies, potentially unlocking additional value for shareholders.
Shares of Lithium Americas closed trading today at $18.90 per share, down -0.89% on the day. YTD, LAC stock is up +6%.
Learn more about Lithium Americas: Website | Investor Deck | LAC Chart
4. Global X Lithium & Battery Tech ETF (NYSE: LIT)
If you want to invest in electric vehicles, but aren’t confident in any one company, then the Global X Lithium & Battery Tech ETF might be for you. The fund focuses on the lifecycle of lithium used in electric vehicle batteries. Included in the ETF are companies that mine lithium, others that refine lithium into a usable form and, finally, companies that use that refined lithium to build battery packs. Top holdings include Albemarle (NYSE: ALB), Panasonic (OTC: PCRFY) and BYD (OTC: BYDDY).
Shares of Global X Lithium & Battery Tech ETF closed the day at $61.93 per share, up +0.81% on the day. YTD, LIT ETF is up +6.89%.
Learn more about LIT ETF: Website | ETF Holdings | LIT Chart
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Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks mentioned in this article.