Electric vehicles aren’t coming. They’re here. And the market for electric cars, trucks and SUVs is expected to explode between now and 2030. According to “preliminary research,” electric vehicle sales reached a record high of 7.8 million units in 2022, up from 6.6 million sold in 2021 and representing about 10% of all vehicles sold around the world. The record sales occurred despite supply chain bottlenecks and parts shortages. By 2030, EVs are expected to account for 20%-40% of all new vehicles sold. To say this is a burgeoning market is an understatement, and there is money to be made for investors as the automotive industry pivots to electric vehicles. Here are three EV stocks that will make you rich in ten years.
Ford Motor Company (F)
Ford Motor Co. (NYSE:F) is not typically thought of as an electric-vehicle company. However, the Detroit automaker has gone all in on electric vehicles and is pushing into the space more aggressively than most of its competitors. Ford has committed nearly $30 billion to the creation and rollout of electric vehicles with the stated goal of having 50% of the 4 million vehicles it produces each year be fully electric by 2030.
Ford’s CEO, Jim Farley, has said repeatedly that he wants to supplant Telsa (NASDAQ:TSLA) as the world’s leading EV manufacturer. To that end, the company has rolled out electric versions of its most popular vehicles, such as the F-150 pick-up truck and the Mustang muscle car. Ford is also in the process of building a new mega campus in Tennessee that will focus exclusively on making electric vehicles. Finally, it’s developing two battery plants in Kentucky. These facilities will create more than 10,000 net new jobs in the U.S.
A range of global issues, most notably difficulties sourcing needed parts from suppliers, has put a crimp in Ford’s quarterly results. Owing to the mixed earnings, as well as the stock market’s weakness, F stock has declined 45% over the last year to $12.23 today. Investors should view the pullback as a buying opportunity.
In 2022, Ford announced that it was raising its quarterly dividend to 15 cents a share, the same amount that it paid before the Covid-19 pandemic erupted. The stock now has a dividend yield of 4.9%.
Lucid Group (LCID)
For investors with higher risk tolerance, there is the electric vehicle start-up Lucid Group (NASDAQ:LCID). The California-based company that went public in early 2021 has entered the luxury EV market.
Its first EV, the Lucid Air sedan, retails at a starting price of $90,000. While the company has a lot going for it (its CEO, Peter Rawlinson, previously served as the Chief Engineer of Tesla), it is a true start-up that is experiencing growing pains.
The company initially expected to produce 20,000 Lucid Airs in 2022 but had only delivered 2,562 of the vehicles by last fall. It generated $350 million of revenue during the first nine months of last year but posted a net loss of $1.83 billion during the same period.
These disappointments have pushed LCID stock down sharply. Over the last 12 months, the company’s share price has fallen 80% to $7.64 per share.
However, there are reasons to be bullish on Lucid Group’s long-term prospects. The company has $5 billion of cash on hand to fund its operations as it builds a new production plant in Saudi Arabia and expands its existing manufacturing site in Arizona. Together, the two plants should enable Lucid to produce 500,000 vehicles or more annually by 2025.
Lucid also continues to receive support from the Saudi government, which has pledged $3.4 billion in financing and incentives for the automaker over the next 15 years and has committed to buy up to 100,000 Lucid vehicles in the next ten years.
Lastly, we’ll take a look at ChargePoint (NYSE:CHPT). The California-based company is the global leader in the manufacture and distribution of electric-vehicle charging stations. Consequently, ChargePoint has a critical role to play in developing the infrastructure needed to keep batteries charged and electric vehicles running as intended. For the EV revolution to occur, charging stations will need to become as commonplace as gas stations are today.
This is why the global electric vehicle charging station market will grow from $16.6 billion in 2021 to $226.3 billion by 2031, advancing at a compound annual growth rate (CAGR) of 30.5%, according to Allied Market Research. ChargePoint is best positioned to capitalize on that growth as it operates the largest network of electric vehicle charging stations in the world, with a footprint in 14 countries.
CHPT stock has dropped 20% over the past 12 months and now changes hands at $10.80 per share. However, analysts remain bullish on the shares and are predicting that they will rebound. The 19 analysts who cover the company have a median price target on CHPT stock of $18 per share.
On the date of publication, Joel Baglole 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.