It has become impossible to ignore the fact that electric vehicles are the future of automotive transportation. Tesla (NASDAQ:TSLA) continues to dominate the market, but the field is growing fast. Startups and legacy automakers are rushing to compete. And according to investment research and education platform Invezz, the top EV stocks to buy include two of the automotive sector’s best-known names.
Invezz recently worked with Zutobi to assess the growth and potential of the electric vehicle market. Dan Ashmore, one of the platform’s data analysts, noted the significant investment coming to EVs:
EV stocks have risen in recent years as the global market for EVs has expanded. EV sales are likely to increase in the next few years, and EV stocks may be well positioned to benefit from this industry’s expansion. As a result, huge traditional automotive corporations such as Ford Motor Company, General Motors, and Toyota Motor Corp are investing billions of dollars in EV R&D, manufacturing, and production.
Ashmore attributes the rising popularity of EVs to the sustainability and environmental benefits that they provide. He also believes that the lowering of costs across the sector, as well as the trend of governments adopting more EV-friendly stances and investing in charging infrastructure, will help propel EV stocks to new heights in the coming years.
Let’s take a look at the top EV stocks to buy, according to Invezz’s findings.
| TSLA | Tesla | $238.76 |
| Volkswagen | $168.75 | |
| POAHY | Porsche | $5.84 |
Tesla (TSLA)
It’s not surprising at all that the leader of the EV sector would be at the top of this list.
Tesla has experienced a rough 2022, dealing with supply chain constraints and rising competition. But even after it reported disappointing delivery figures for the third quarter, many experts remain bullish on Tesla. For instance, Cathie Wood recently increased her TSLA stock holdings.
The consensus among many experts is that Tesla belongs on any list of EV stocks to buy. Invezz offers the following assessment of TSLA stock based on its data:
In terms of valuation, Tesla may appear to be an expensive stock. However, the corporation has consistently achieved tremendous earnings and revenue increases. Furthermore, annual earnings predictions show that Tesla’s growth trajectory remains intact.
Volkswagen (VLKAF)
This legacy automaker doesn’t appear on every list of EV stocks to buy. Nevertheless, Volkswagen (OTCMKTS:VLKAF) is a dynamic automaker that has made significant strides toward penetrating the EV market. It recently made headlines after its subsidiary Porsche made its trading debut in Frankfurt. According to the company’s CFO, this leaves Volkswagen “ready and well funded to execute its EV strategy.” Electrek also reported that the European auto giant is considering a public listing for PowerCo, its battery production unit. This would generate even more cash for the holding company to continue its EV expansion.
In June 2022, a report from Bloomberg Intelligence predicted that Volkswagen would outsell Tesla by 2024.
Invezz reported that “By 2025, Volkswagen wants to sell 20% or so of electrified vehicles as the manufacturer intends to invest 89 billion euros in electrification and digital technology.” That type of expansion could certainly help it sell more EVs than Tesla.
Porsche (POAHY)
After making a splash in the EV market, Porsche recently launched one of most hotly anticipated initial public offerings in the European market. And what’s good for this stock may be good for Volkswagen as well. The family behind Porsche has a 53% stake in Volkswagen, whose vast auto holdings include the Porsche brand. As InvestorPlace Assistant News Writer Shrey Dua reported:
Going forward, . The next few years may well build the foundation for a new generation of EV leaders for decades to come. VW’s choice to take Porsche public is the culmination of nearly a century of automobile production and brand cultivation.
So what does this mean for POAHY stock? Shares in POAHY represent the Porsche family and their controlling stake in all things Volkswagen and Porsche. With a European IPO complete, Porsche just raised 19.5 billion euros to fund its push into electrification.
That means the iconic, luxury brand is well-positioned to keep growing and conquer the European EV market. That will benefit Volkswagen, POAHY, and Frankfurt-listed shares of Porsche.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
