15 EV Stocks to Buy as GM Goes All-Electric

Amid the retail trading frenzy on Wall Street and historic short squeezes in GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC), and Koss Corporation (NASDAQ:KOSS), it’s easy to ignore other headlines in the markets these days … But this headline in EV stocks should not fly under your radar.

A photo of an electric car with the charger plugged in.

Source: Nick Starichenko/InvestorPlace.com

That is, General Motors (NYSE:GM) is going all electric by 2035.

Specifically, General Motors announced plans last week to end production of all diesel and gasoline-powered cars, trucks, and SUVs by 2035 – meaning all GM cars produced 2035 and after will be electric.

That’s big news for EV stocks.

Why? Because its General Motors.

This is an old-school auto titan – a company that has made a killing over the past 110 years selling diesel and gas-powered cars to consumers, and which has been glacially slow to adapt to the EV Revolution.

And now, even GM – an icon of the “old auto” industry – is going all-electric.

This is a big moment. When the dinosaurs get on board, you know the train isn’t going to stop.

The EV Revolution has started – and it’s not going to stop until electric cars become globally ubiquitous.

Here’s what that means in numbers.

Globally, about 60 million new passenger cars were sold in 2020. About 5% of those – or just under 3 million – were electric vehicles.

Considering that even GM is going all-electric by 2035, it’s quite likely that nearly 100% of new car sales globally will be electric by 2040.

Population growth and urbanization will drive steady growth in total new car sales, with that number likely hitting about 80 million units by 2040. All 80 million could very likely be electric vehicles.

This puts the global EV industry in position to grow from 3 million unit sales in 2020, to 80 million unit sales in 2040 – representing dizzying growth of over 2,500%.

Yep. You heard that right. The global EV industry is positioned to grow by more than 2,500% over the next two decades.

This is an industry you want to buy into today, and it’s an industry that you need to maintain exposure to for the next several years.

Should You Buy GM Stock?

Now, some of you might be saying that you want to buy General Motors’ and Ford’s stock, because once they pivot into EVs they’re going to start selling a lot more cars, and their stock prices simply aren’t priced for this reinvigorated growth.

I get that argument. It makes sense to me. I do think both stocks will perform decently over the next 12-plus months.

But… that’s not where the best returns in this industry will happen.

Ford and General Motors are laggards in the EV Revolution. Laggards don’t end up being the big winners. The innovators in new industries end up being the big winners.

Who are the innovators in the EV industry?

Of course, there’s Tesla (NASDAQ:TSLA) – the EV giant who basically created the electric car space and is now dominating it on a global scale with the best cars. Tesla stock is a great long-term buy to play the EV Revolution.

But – as some will correctly point out – Tesla is already a near-trillion-dollar company. A lot of breakthrough growth is already priced in…

So, who else is there?

The Top Hypergrowth EV Stocks to Buy Now

You have Nio (NYSE:NIO) – the “Tesla of China” – that is pretty much Tesla’s only technological rival in the electric passenger car space. NIO is much smaller than Tesla ($90 billion market cap) with a lot more upside potential.

There’s also Fisker (NYSE:FSR), a pre-production EV company whose affordable yet stylish Ocean eSUV could end up being a huge hit among U.S. consumers, and Canoo (NASDAQ:GOEV), a hyper-innovative EV maker that is making a brand-new car purpose-built for the era of self-driving.

Meanwhile, on the commercial side of things, Workhorse (NASDAQ:WKHS), Arrival (NASDAQ:CIIC), XL Fleet (NYSE:XL), and Lordstown Motors (NASDAQ:RIDE) all come to mind as companies ready to electrify the world’s fleet vehicles.

Also, don’t sleep on three-wheel EV makers Arcimoto (NASDAQ:FUV) and ElectraMeccanica (NASDAQ:SOLO). Thanks to societal and demographic changes, three-wheel EVs could sell really well in America, Asia, and Europe over the next several years.

On the battery side of things, Romeo Power (NYSE:RMO) and QuantumScape (NYSE:QS) deserve your attention. Romeo is doing some really cool things with battery packs, while QuantumScape is pioneering a new generation of game-changing solid-state batteries.

Lastly – and maybe the best way to play the EV Revolution – you have charging station operators Blink Charging (NASDAQ:BLNK), ChargePoint (NYSE:SBE), and EVBox (NYSE:TPGY). As EVs replace gas cars, charging stations will replace gas pumps.

So… when investing in the EV Revolution… forget the Fords and GMs of the world… and instead, invest in the innovators.

It’s these EV innovators that will score you hypergrowth returns.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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