Electric vehicle (EV) stocks have been one of the best performing industries in the stock market for the past year. This should not come as a surprise considering awareness for green alternatives is growing at a frantic pace. Many countries are slowly phasing out oil and gas in favor of renewable energy. This hugely benefits the EV sector as they are set to replace their traditional fossil fuel counterparts. As a result, investors have been looking for the best EV stocks to buy in the stock market today.
Even top traditional automotive companies such as Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM) are not resting on their laurels. These companies are aware of the importance of diving into the EV market as it is likely where the future lies. In February, Ford hiked EV and autonomous vehicle (AV) investment commitment to $29 billion by 2025. Ford released the new Mustang Mach-e in December 2020 while archrivals GM responded with plans of an electric Hummer set to be released in 2023.
With President Joe Biden unveiling the $2.25 trillion infrastructure plan, EVs stand to benefit from the plan. The White House is proposing a massive $174 billion investment into the EV market. That includes $100 billion for new consumer rebates and $15 billion to build new electric vehicle charging stations. As we speed up the transition to electric vehicles, companies that focus on the electrification of automakers are well-positioned to benefit. Given the endless opportunities in the industry, should you take a look at some of the top EV stocks to watch right now?Best EV Stocks To Buy [Or Sell] Right Now
- Blink Charging Co (NASDAQ: BLNK)
- ChargePoint Holdings Inc (NYSE: CHPT)
- Allison Transmission Holdings Inc (NYSE: ALSN)
- Tesla Inc (NASDAQ: TSLA)
When you have almost every automotive company diving into the EV scene, the charging stations become essentials as well. And this is where EV charging station stock Blink Charging comes into the picture. Blink is a leading owner, operator, and provider of EV charging equipment and charging services company headquartered in Florida. The company’s principal line of products and services is its charging network known as the “Blink Network”. Having been listed in Forbes’ America’s Best Small Companies, it is slowly but surely living up to expectation.Source: TD Ameritrade TOS
The company’s stock charged 13% higher during Thursday’s trading session. This came after the announcement that New York-based Four Brother Pizza Inn has given Blink a contract to install 42 charging ports across 10 Four Brothers restaurants in the state. This is certainly good news for Blink as it incurs little or no upfront costs to set up this infrastructure. And the best part is, it can almost immediately begin profiting from the sale of electricity to EV owners.
In terms of the company’s financials, revenues for the year 2020 rose 121% to $6.2 million. With the adoption of electric vehicles accelerating at an unprecedented rate, it certainly presents an opportunity for companies like Blink. With that in mind, will you consider adding BLNK stock to your portfolio?ChargePoint Holdings Inc
Next in line is another EV charging station stock, ChargePoint Holdings. It is an EV infrastructure company that operates one of the largest networks of EV charging stations. The company has recently gone public following the completion of its merger with Switchback Energy Acquisition. With over 90 million charges delivered, the company continues to expand its vertical by providing its solution to large fleets and businesses. Along with many clean energy stocks benefitting from Biden’s infrastructure plan, is it safe to say there’s more room to run for CHPT stock?Source: TD Ameritrade TOS
When compared to archrivals Blink Charging, CHPT stock may be more reasonably valued. This is despite knowing ChargePoint has a staggering 73% market share of networked Level 2 charging in comparison to the 8% which Blink commands. On top of that, CHPT stock should do well regardless of who comes out on top in the EV market. By now, it is safe to say that electric vehicle growth is only going to be accelerating as we progress. With the Biden administration planning to deploy 500,000 new public charging stations by 2030, buying CHPT stock on dips could potentially be an opportunity in my opinion.
- 4 Quantum Computing Stocks To Watch In April
- Best Stocks To Buy Right Now? 4 Consumer Discretionary Stocks To Know
Allison Transmission is the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. It is also a leader in electric hybrid propulsion systems for city buses. From its stock price movement, ALSN stock has been relatively flat for the past six months.Source: TD Ameritrade TOS
However, with the company slowly gearing towards EV, there could be some gains to be unlocked. This week, Goldman Sachs named ALSN stock as one top EV stocks that would benefit from the electric vehicle boom. Allison is committing to zero-emission technologies. For instance, its electric hybrid propulsion solution utilizes geofencing which automatically switches to full electric drive in designated zones.
In February, bus manufacturer GILLIG announced that it will be offering Allison’s eGen Flex™ electric hybrid propulsion system. The system provides bus fleets with up to 10 miles of full-electric propulsion for zero-emission zones. What’s more, the system could improve fuel economy by up to 25% versus a conventional clean diesel bus. With such an exciting development, would you consider adding ALSN stock to your watchlist?Tesla Inc
It is nearly impossible to talk about EVs without mentioning its industry leader, Tesla. The EV giant recently released a smashing quarterly report. This signals to investors that EV adoption is indeed taking place. Since EV adoption is on the rise, it makes sense to know how Tesla fares in the international markets.Source: TD Ameritrade TOS
Take Japan, for instance, Tesla has historically had a hard time selling vehicles in the fourth largest auto market. That’s partly due to the incompatibility of parking structures in Japan. In detail, the Model S and Model X seem to be too big to fit into movable parking spaces. But things may be changing.
In fact, Tesla surprised the market by seeing its sales climb 1,300% in Japan. Largely this is due to decreasing manufacturing and transportation cost of the vehicle, which is now being imported from Gigafactory Shanghai. With the sales deliveries rising globally, the rally of TSLA stock in 2020 is not unwarranted. With this bullish sentiment in place, could the recent weakness be a buy-on-dip opportunity for investors? If you are one of its believers, would you jump on the TSLA stock bandwagon?