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Top Electric Vehicle Stocks to Watch [2022]

Electric vehicle stocks have been front and centre for investors in recent years, but which still perform in 2022?

Key highlights:

  • Tesla still tops the list for the top electric vehicle stock traded by Stake investors.
  • As electric vehicles look to go mainstream, battery developers and manufacturers are expected to become more widely traded.

By 2035, China will require 50% of new cars sold in the country to be electric, plug-in hybrid, or fuel cell vehicles. The other 50% can be conventional hybrids, in just one example of how petrol cars are on the way out. Let’s dive into which Australian shares and U.S. stocks Stake investors are using to play the electric car market trend.

Top traded electric vehicle stocks

Company

Ticker Symbol

Stock Price

Year to Date

Market Capitalisation

Tesla, Inc.

NASDAQ: TSLA

US$303.75

18%

US$952b

Novonix Limited

ASX: NVX

$2.24

-67%

$1.1b

Nio Inc

NYSE: NIO

US$21.51

-39%

US$37b

Nio Inc

ASX: MSN

$0.465

48%

$451m

Lucid Group, Inc.

NASDAQ: LCID

US$16.49

-35%

US$28b

Li-S Energy Limited

ASX: LIS

$0.575

-75%

$368m

Rivian Automobile, Inc.

NASDAQ: RIVN

US$39.69

-60%

US$36b

Arrival SA

NASDAQ: ARVL

US$1.04

-92%

US$657m

Xpeng Inc.

NYSE: XPEV

US$15.51

-56%

US$13b

Workhorse Group, Inc.

NASDAQ: WKHS

US$3.27

-56%

US$535m

Data as of 15 September 2022

Here are last month's most traded EV stocks from ASX and Wall St

1. Tesla (TSLA)

Exchange: NASDAQ

Market Capitalisation: US$952b

Stock price (as of 15/09/22): US$303.75

Stake Platform Bought / Sold (August 2022): 69% / 31%

When it comes to most traded stocks on Stake, one is king. With exposure to electric vehicles and solar panels and storage, it should come as no surprise Tesla topped our list in August.

The automotive segment includes the design, development, manufacturing, sale, and lease of electric vehicles and sales of automotive regulatory credits. The sale of Tesla’s electric vehicles generated US$14b out of Q2 2022’s US$17b in revenue, making it first and foremost an automotive manufacturer.

Meanwhile the energy generation and storage division designs, manufactures, installs, sells and leases solar energy generation and lithium-ion energy storage products. Despite the fanfare around the US$2.6b acquisition of SolarCity in 2016, it has largely disappointed, generating US$97m in gross profit on US$866m in revenue during Q2 2022.

In August 2022, the Tesla share price dropped 5.6% – a performance that still beat the S&P 500’s 6.5% decline.

2. Novonix Limited (NVX)

Exchange: ASX

Market Capitalisation: $1.1b

Stock price (as of 15/09/22): $2.24

Stake Platform Bought / Sold (August 2022): 70% / 30%

Novonix is essentially a diversified battery technology developer. But before you get the wrong idea, none of Novonix’s current projects involves developing a new battery. Instead, the company focuses on battery testing services and equipment that can test all battery types, from prototype to fully commercialised.

Novonix is also developing a method of producing high-quality, synthetic graphite in the U.S. called PUREgraphite. Still, graphite production in sufficient commercial quantities is a ways away. In a letter from CEO Dr. Chris Burns on 2 February 2022 he stated: 'Our targets are ambitious - by 2030, we aim to increase production to 150,000 metric tons per year of synthetic graphite, enough to power 2.7 million EVs annually'.

The NVX stock price has recently declined 23% as the market has turned against companies still in the development phase. Still, investors’ excitement over Novonix products’ potential is understandable in the long run.

3. Nio Inc (NIO)

Exchange: NYSE

Market Capitalisation: US$36b

Stock price (as of 15/09/22): US$21.51

Stake Platform Bought / Sold (August 2022): 55% / 45%

Nio Inc is one of China’s answers to Tesla, with offices in Oxford, Donington, Oslo, Munich, San Jose, Beijing, Nanjing, Shanghai and Hefei.

Still, Nio is smaller than Tesla, delivering 25,059 electric vehicles and generating total revenue of RMB10,292m (US$1.5b) in Q2 2022. The vast majority of Nio’s revenue comes from vehicle sales, at over US$1.4b in Q2 2022 – up 21% year-on-year. The other US$108m was generated through auto financing, service and energy packages and used car sales.

In a rare case of an EV technology stock effectively flat during August, NIO stock price declined only 1.3%. There was some concern recently that the new U.S. semiconductor ban to China would affect the electric vehicle industry. However, Chinese EV companies use chips not on the current sanctions list.

4. Magnis Energy Technologies (MNS)

Exchange: ASX

Market Capitalisation: $451m

Stock price (as of 15/09/22): $0.465

Stake Platform Bought / Sold (August 2022): 59% / 41%

Magnis Energy Technologies calls itself a ‘vertically integrated lithium-ion battery technology and materials company’. It operates a Gigawatt-scale Lithium-ion battery manufacturing plant in Endicott, New York, has exclusive licence to C4V’s anode processing technology, and owns the Nachu graphite project located near Ruangwa, south-east of Tanzania.

Despite the diversification, Magnis is still in its early stages, with the Lithium-ion battery plant 84% complete as of June 2022 and the Nachu graphite project under development. As of Q2 2022, Nachu’s operating cash flow generated a loss of $20m, but after borrowing $112m, the company has $100m left in cash which seems to be plenty of runway.

Without any operating track record, an investment in companies like Magnis assumes the technology will stand the trails of commercialisation. Hoping that with risk comes reward, Stake investors are betting Magnis has a future. It’s paying off so far, as the MNS stock price rallied 41% in August 2022.

5. Lucid Group, Inc. (LCID)

Exchange: NASDAQ

Market Capitalisation: US$28b

Stock price (as of 15/09/22): US$16.49

Stake Platform Bought / Sold (August 2022): 73% / 27%

With a focus on luxury electric vehicles, Lucid is hoping it found its market share niche. Unfortunately for investors, the company has struggled with production, revising its 2022 vehicle production forecasts twice so far.

As Lucid continues to ramp up production and expand its car offering with the Lucid Air Grand Touring Performance, expenses continue to mount. During Q2 2022, R&D and SG&A rose 13% and 127% year-on-year, respectively. The net loss after tax for the period was US$220m, leaving Lucid with US$4.6b in cash and equivalents.

Management has provided production guidance for full year 2022 between 6,000 and 7,000 vehicles, and capital expenditures of US$2b. While this seems possible, there isn’t a strong track record yet, and the LCID stock price dropped 16% in August.

6. Li-S Energy Limited (LIS)

Exchange: ASX

Market Capitalisation: $368m

Stock price (as of 15/09/22): $0.575

Stake Platform Bought / Sold (August 2022): 70% / 30%

Li-S Energy has worked with Deakin University over the last three years to develop a commercial grade lithium-sulphur battery. Lithium-sulphur is not a new idea, but previous attempts have failed to achieve a competitive cycle life. Li-S solved this with boron nitride nanotubes (BNNTs) as nano-insulators.

According to S&P Global Market Intelligence, lithium-ion battery packs cost US$156 per kilowatt hour (kWh) in 2019. At US$100 per kWh, most experts believe EVs will reach cost parity with petrol and diesel vehicles. While some battery packs are below US$100 already, the key here is the average, and BloombergNEF estimates this will be achieved in 2024.

Sounds great, but US$100 per kWh is also understood to be at the limit of lithium-ion battery technology’s capabilities. While the exact point where the technology will hit a wall is up for debate, it’s widely accepted that lithium-ion battery technology will get us to the tipping point, but no further.

Li-S batteries seem like a strong candidate to replace lithium-ion technology and have demonstrated approximately 3x the capacity of conventional batteries over 1,000 charge and discharge cycles. 2022 has seen a number of collaboration agreements signed, including one with Boeing (NYSE: BA).

The technology still has a ways to go before Li-S batteries are able to compete on a global scale. After the LIS stock price saw a 36% decline in August, Li-S could be one of the stocks to buy for those looking to make a diversified bet on the future of clean energy.

Find out more: Top Lithium Stocks on ASX [2022]

7. Rivian Automobile, Inc. (RIVN)

Exchange: NASDAQ

Market Capitalisation: US$36b

Stock price (as of 15/09/22): US$39.69

Stake Platform Bought / Sold (August 2022): 66% / 34%

Rivian (RIVN) has been in the news this month after it announced a joint venture with Mercedes-Benz (OTCMKTS: DMLRY) to build two new vans for the U.S. and European markets. This is a massive win for an EV upstart like Rivian, especially after it burned US$1.2b in cash during Q2 2022.

But Rivian’s financials were on the way up even before the JV was announced. During Q2 2022, the company generated US$364m in revenue and US$459m during the first half of 2022, compared to US$0 the previous year. With US$15b in cash and equivalents as of 30 June 2022, shareholders can be confident the company has over a year’s worth of runway.

During August, an investment in Rivian generated a loss of 13%.

8. Arrival SA (ARVL)

Exchange: NASDAQ

Market Capitalisation: US$657m

Stock price (as of 15/09/22): US$1.04

Stake Platform Bought / Sold (August 2022): 72% / 28%

Over the last 12 months, the ARVL share price has declined 92% as the company struggles to get its expenses under control. Despite cutting 30% of its workforce in July, shares continued to free-fall 34% in August as investors sold out of the stock. So why did Stake customers make 2.6x more purchase orders than sales that same month?

Unlike most of the other electric car stocks we mentioned in this article, Arrival SA focuses on lightweight commercial vehicles using a unique manufacturing process.

Arrival SA believes flexible microfactories are the future. These factories require only 200,000 square feet of space, allowing the utilisation of pre-existing commercial and warehouse infrastructure. The company estimates it can produce 10,000 vans annually at a CAPEX of US$50m per factory within a six-month time frame.

Despite securing partnerships with Microsoft (NASDAQ: MSFT), Hyundai (OTCMKTS: HYMTF) and Uber (NYSE: UBER), management has delayed its production start three times already. This led to significant shareholder dilution. Management is in the process of drastic changes and 2023 is the make-or-break year for the company. With sky-high valuations across many of the best EV stocks, Stake customers seem to believe Arrival SA is worth a punt.

9. Xpeng Inc. (XPEV)

Exchange: NYSE

Market Capitalisation: US$13b

Stock price (as of 15/09/22): US$15.51

Stake Platform Bought / Sold (August 2022): 81% / 19%

Located in Guangzhou, Guangdong, China, this electric vehicle manufacturer delivered 34,422 vehicles in Q2 2022, a 98% year-on-year increase.

The XPEV stock price plummeted 18% in August, mainly due to Q2 2022’s results seeing gross margin decline 100bps year-on-year due to higher raw material costs.

Stake customers overwhelmingly took the drop as an opportunity to buy. This could be due to a focus on the bullish guidance surrounding new product launches over the next 12 months and the drastic increase in vehicle deliveries. It’s also important to note that the price of the raw materials required to make electric motors has largely declined so far during the second half of 2022, potentially having a positive impact on gross margins.

10. Workhorse Group (WKHS)

Exchange: NASDAQ

Market Capitalisation: US$535m

Stock price (as of 15/09/22): US$3.27

Stake Platform Bought / Sold (August 2022): 42% / 58%

The only one of the electric car stocks listed in this report to be sold off en-masse by Stake customers in August was U.S.-based electric van manufacturer the Workhorse Group.

The selloff was largely in line with the market after Workhorse cut its 2022 revenue guidance from US$25m to between US$15m and US$25m. The basis for this guidance cut was supply chain issues leading to a cut in vehicle sales guidance from 250 to between 150 and 250. Combined with a loss of US$21m compared to analysts’ expectations of US$19m, it’s no surprise the WKHS share price was down 11% in August.

Supply chain issues continue to plague companies around the world, but Stake customers don’t seem keen to trade WKHS, with their opinion being that it won’t come out on top.

Electric vehicle stocks FAQs

What does the future of the electric car industry look like?

If we knew the future of the EV market, all employees at Stake would be billionaires.

While it’s clear that electric cars are an important part of a clean energy future, many questions remain. Two key ones are: what will replace lithium-ion batteries, and how will EV charge time be reduced?

Which is the number one EV company?

When we sort EV manufacturers by market capitalisation, Tesla (TSLA) has the undisputed number one spot at the moment. Even if we include traditional automakers.

Are EV stocks under or overpriced?

Investor interest in EV stocks remains strong and the market value of the companies often includes a heavy amount of goodwill and long-term assumptions. This leaves the stocks open to high volatility if expectations are missed, or development fails.

Which electric vehicle stocks pay dividends?

The majority of electric car stocks don’t pay dividends, but two of the rare ones are BYD and Ford.

BYD Company is one the largest manufacturers of electric vehicles. The company also manufactures lithium-ion batteries and electronics.

While it’s controversial as to whether Ford (F) could be considered an EV stock, the third largest car manufacturer in the U.S. is focusing increasingly on electric cars and electric trucks.

This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.


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