Electric vehicle stocks have massive growth ahead. Governments worldwide continue to subsidize the industry, lowering the effective price of EVs for consumers. Major corporations, looking for both cost savings and positive press, now are jumping onboard. But investors can’t just buy any EV stock and call it a day. With a combined market capitalization of over $1.2 trillion, the industry could see a shakeout before the end. Picking the right EV stock is paramount — and a challenge.
Frequently Asked Questions
What are the Best EV Stocks?
Newer players have also appeared. Fisker (NYSE:FSR), for instance, aims to challenge Tesla on the high end. Electrameccanica Vehicles (NASDAQ:SOLO) is producing a three-wheeled vehicle for urban buyers. Canoo (NASDAQ:GOEV), inventor of a unique “skateboard” platform, looks to serve the commercial market. Workhorse Group (NASDAQ:WKHS) is chasing a government contract potentially worth $6 billion or more.
Investors now have a wealth of choices across price points and end markets.
How to Buy EV Stocks?
Then there are special purpose acquisition companies (SPACs). Many EV companies have used these entities to go public, a trend started by electric semi manufacturer Nikola (NASDAQ:NKLA). Since then, CIIG (NASDAQ:CIIC) has planned a merger with U.K.-based Arrival, a developer of electric buses and vans. Churchill Capital IV (NYSE:CCIV) is executing one of the largest and most sought-after SPAC mergers in history, raising more than $4 billion for high-end Tesla rival Lucid Motors.
These options mean that investors now have a wide variety of choice in how to buy EV stocks.
Is Nio Stock a Good Investment?
But there are risks. Notably, Nio is far from alone in targeting the Chinese market. Tesla, for instance, has already opened a production plant in Shanghai. Other homegrown competitors from BYD to Xpeng (NYSE:XPEV) will also for a slice of the pie. As with so many EV stocks, Nio has a massive opportunity. But, it will also need to capitalize on that opportunity to provide the returns investors are hoping for.