The electric vehicle industry is growing. Fortune Business Insights says the global EV market was USD 246.70 billion in 2020. It projects the market will grow at an annual rate of 24.3 percent to be more than $1.3 billion in 2028. According to Forbes, improved performance, clean energy, and the rising price of gasoline are encouraging more people to switch to electric cars.
Congress also is encouraging the growth of the EV market. The Inflation Reduction Act of 2022 provides consumers a tax credit of $7,500 if they buy qualifying electric vehicles. The incentives may accelerate consumer adoption of electric cars in the United States.
EV stock prices, like those in all industries, decline, and rise with the economy. However, many analysts feel that EV stocks will be lucrative long-term.
Tesla Inc. (TSLA) is the largest manufacturer of electric vehicles and sold almost 1 million cars in 2021. Tesla now offers four models, including S, 3, X, and Y. Tesla’s Model Y was the sixth best-selling car in the United States last year. The Tesla Model 3 also is a best seller.
Until recently, Tesla has operated without competition and has a significant market share among EV manufacturers. However, more companies are bringing electric vehicles to market.
While Tesla is a leader in the EV market, investing in Tesla is no longer the only way to invest in EV stocks. For one thing, Tesla stock is expensive when compared with the prices of most EV stocks. Indeed, the share price is even higher than traditional automakers, such as Ford Motor and GM.
In addition, legacy automakers and startups are also beginning to send electric cars through their assembly lines at increasingly high rates. Investing in a legacy business is generally safer. Most EV stocks are startups and growth stocks.
Investing in them carries more risk, and some may not yield significant returns until the next decade, if ever. However, the potential long-term rewards are great. So, no matter your risk level, some of the best EV stocks could be right for you.
With all that in mind, here are several other stocks like TSLA.
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Similar Stocks Like Tesla
1. NIO Inc.
NIO (NIO) is a Chinese electric vehicle manufacturing company. NIO stock trades on the New York Stock Exchange. Founded in 2014, it became publicly traded in 2018. Its notable models are the ES8 and ES6 SUVs and the EC6 crossover.
The company produced more than 20 percent more vehicles in the first half of 2022 than in previous years and continues to ramp up production in the second half. The company also has introduced a new sedan, the ET7.
The company is still not profitable, and NIO’s sales still lag behind Tesla’s. However, its EV market share is growing. Industry analysts believe its revenue will grow twice as fast as Tesla’s over the next few years.
Some analysts also think the company has a competitive pipeline of vehicles. It could be a good value stock choice. It also is an excellent way to diversify a portfolio by adding an international stock. One caution, however, is that Chinese companies lack the stringent accounting requirements of US companies, and the US Securities and Exchange Commission is threatening to delist those that fail to comply.
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2. Li Auto Inc.
Li Auto (LI) is a leader in the EV industry in China and was the first company to have an extended-range SUV. Its stock trades on the Nasdaq exchange. Li specializes in producing luxury vehicles, and analysts predict its sales will grow phenomenally.
Among electric vehicle newcomers, its Li ONE was the first model to sell more than 200,000. Li has recently released the L8 and says its pipeline is robust. The downside is that the company still is not profitable; however, analysts believe it may soon deliver a positive EPS.
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3. XPeng Inc.
XPeng Inc. (XPEV) is a startup that is targeting the middle-income electric vehicle market in China. Its revenue increased by more than 200 percent in 2021 over 2020, and analysts predict that revenue growth will continue. XPeng offers two sports car models and two SUV models, one of which has received a permit for autonomous driving. The stock trades on the NYSE.
The downside of XPeng is that analysts do not expect it to be profitable before 2025 at the earliest. On the plus side, it has a low share price and is potentially a good growth stock for someone who can afford to hold onto it for several years. It also adds diversity to portfolios that contain mostly domestic or legacy stocks.
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4. Rivian Automotive Inc.
Rivian Automotive (RIVN) is a startup that produced its first vehicles and went public on the NASDAQ exchange in 2021. It has financial backing from large companies such as Ford Motor Co. and Amazon. The company targets the electric truck and SUV market and currently produces two SUVs, the R15 and the R1T. It also will produce electric delivery vehicles to sell to Amazon.
Some analysts believe Rivian poses a viable threat to legacy automakers entering the electric vehicles market. Others believe investing in Rivian is risky. All seem to agree that profitability is still several years away, so only those who don’t need their money right away and can handle the exposure should consider investing.
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5. ChargePoint Holdings
ChargePoint (CHPT) is an American company that provides an infrastructure for charging EV batteries throughout the U.S. and Europe. It also includes hardware for charging EV batteries at home and businesses. The company is the largest independent producer of charging stations and has a solid list of customers, including Target, Pepsico, and United Airlines.
It is already on solid financial footing, and analysts expect sales to continue to increase in both the United States and Europe. Indeed, most analysis indicates that demand for its technology exceeds the current supply.
The company is putting money into research and development at a significant rate and has recently launched two new product lines, the CP6000 and Express Plus DC. These products can service all types of vehicles. The express charging capability allows drivers to drive for 200 additional miles after only 15 minutes.
While some analysts recommend the stock, others are concerned that management’s emphasis on rapid growth may be coming at the expense of profitability. The projections are that the company will not make a profit for several years, so this stock, like many EV stocks, is a long-term investment.
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6. Lucid Group Inc.
Lucid Group (LCID) is an American manufacturer of luxury electric cars with prices of more than $100,000. It was founded in 2007 and went public in 2021. Analysts expect its revenue to grow phenomenally. However, net income will still be damaging for several years, just like many other EV companies. Investment in Lucid is a long-term prospect for those who can afford to hold onto the stock for several years.
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7. General Motors Corp.
General Motors (GM) is a legacy American automaker that boasts it will overtake Tesla in EV market share by the mid-2020s. General Motors is investing $35 billion into electric vehicles through 2025. Unlike EV startups, GM is a profitable company using income from the sales of its traditional automobiles to fund EV research and development. The automaker expects to scale its manufacturing capacity to 1 million units annually in North America by 2025.
GM is currently developing vehicles on an Ultium platform built on a flexible architecture. It claims Ultium will make charging easier.
GM is a safer stock for those who want to limit their exposure to startups. Its share price also is lower than Tesla stock.
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8. Ford Motor Co.
Ford Motor Co. (F), another one of the traditional carmakers, is investing $50 billion in electric vehicles through 2026. Ford is gaining market share, with its EV vehicle sales growing twice as fast as the overall EV market.
Its F-150 Lightning was the best-selling electric truck in the US in 2022. Its Ford Mustang Mach E, a battery-electric compact crossover, won the North American SUV of the Year in 2021. The Mach E model was the automaker’s first electric vehicle.
Ford is using the income from its traditional car sales to fund its development of electric vehicles. Its stock is a safer investment than startup electric vehicle stocks; however, the return potential is less. The share price is less than that of Tesla stock.
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9. Toyota Motor Corp.
Toyota Motor Corp. (TM), based in Japan, is one of the world’s largest traditional automakers. It plans to invest half its $70 billion budget into electric vehicles over the next nine years.
Toyota released its first fully electric car in 2022 for 2023. The SUV 2023 bZ4X model makes electric vehicles more accessible to those who can’t afford six-figure price tags, the company’s materials say.
Toyota plans to produce and sell more than 70 electric models by 2025, using various technologies such as hybrid, plug-in hybrid, fuel cell electric, and battery electric.
Toyota is also investing in battery production plants in Japan and the United States, protecting itself against supply chain issues. Some of the plants operate as a joint venture between Toyota and Panasonic.
Toyota’s share price is currently slightly more than Tesla’s share price.
10. Albemarle Corp.
Albemarle Corp. (ALB) makes many analysts’ lists of the best EV stocks. Albemarle, founded in 1887, is one of the largest producers of lithium batteries in the world. Lithium batteries power electric vehicles, so as the future EV market grows, Albemarle will also increase. Demand already is surging for the company’s batteries; 2022 battery revenues were 91 percent more than a year earlier.
Albermarle is also attractive because it has an experienced management team and a long track record. It is a well-diversified chemical company, producing for many industries, including pharmaceutical, agriculture, electronic goods, and paper. Its lithium battery division and many other divisions are profitable.
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Blink Charging Company (BLNK) designs, manufactures, operates, and owns EV charging stations. The company deploys thousands of chargers throughout the United States and Europe. It announced five new products at the 2023 Consumer Electronics Show.
Blink is an attractive stock choice because of its rapid growth. It sold or contracted 3,174 charging stations during the first quarter of 2022, which was double the amount sold or contracted a year earlier. Blink also has a 14-year track record, which will satisfy investors who may be too conservative to consider startups. It is also one of the few EV stocks with a B financial grade from Morningstar.
The downside is that Chinese companies are launching a revival of battery-swapping stations. Should the revival be successful, battery swapping could make charging stations less attractive in the future.
12. Ballard Power Systems
Ballard Power Systems (BLDP) is a global hydrogen fuel cell vehicle technology producer. The company says hydrogen fuel cells improve the performance of electric buses by generating power from hydrogen to recharge the batteries. More than 1,300 hydrogen fuel cell buses are deployed throughout the world.
The company also has recently launched FCWave, a marine fuel cell module. The company’s fuel cell also can be used in trains; the company’s management believes fuel cell trains will be a disrupter in the rail industry. It also sees the potential benefits of hydrogen fuel cells for lighter electric vehicles and hopes to sell more automakers on this idea.
The company’s 40-year history, as well as its innovative technology, make this one of the best EV stocks.
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13. Aptiv PLC
Aptiv (APTV) is a global technology company. Its electrical components and self-driving products make it squarely part of the supply chain for EV companies. Because the company is a supplier, investors may find Aptiv stock lucrative regardless of whether Tesla or another equipment manufacturer ultimately leads the industry. Indeed, analysts forecast that Aptiv’s earnings will grow at 97.6 percent annually.
The downside is that revenue growth isn’t expected to mirror earnings growth. The forecast of 14.78 percent annually is less than exceptional in the EV industry. Still, the consensus among analysts is that investors should buy the stock.
Wolfspeed (Wolf) is a leader in semiconductor production. Semiconductors are used in battery-electric vehicles. It is an American company founded in North Carolina in 1987. Restructuring efforts are moving it from silicon to silicon carbide as an environmental sustainability measure. Indeed, the company has recently begun construction on the world’s largest silicon carbide production facility. Silicon carbide is more expensive than silicon but is more durable at high temperatures, which is an important selling point in the EV industry.
Wolfspeed is not without short-term challenges. For example, its share prices tanked in the first quarter of 2022 based on the company’s guidance for the second quarter. However, over the longer term, the company’s prospects look good. The company still expects to grow 30 percent year over year.
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