EV Shares: Top 10 Electric Vehicle Stocks in 2023

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.

Investing in EV shares

The future of investing in electric vehicle stocks looks promising as the demand for sustainable transportation continues to grow. Popular EV companies such as Tesla, NIO, and Lucid Motors have seen significant growth in recent years, and EV battery companies such as QuantumScape, Panasonic and Microvast, are also poised for growth as the demand for EVs increases globally. However, as with any investment, there are risks to consider, such as competition and regulatory changes.

Top electric vehicle stocks

Data as of 11 April 2023

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Here are the top EV shares to watch

1. Tesla ($TSLA)

Exchange: NASDAQ

Market Capitalisation: US$578b

Stock price (as of 11/04/2023): US$184.51

Stake Platform Bought / Sold (Jan 2023 - March 2023): 70% / 30%

When it comes to the most traded U.S. 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$71b out of US$81b in revenue for the year ended Dec 2022, 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$1.12b in revenue during 2022.

While Tesla's share price has fallen severely from its peak of US$407 in late-2021, its income generation ability has actually grown stronger in 2022, more than doubling total net income in 2021. Similar, basic earnings per share in 2022 ended at $4.02, compared to just $1.87 in 2021. Investors may find opportunity in the current share price weakness.

🆚 Compare TSLA vs RIVN→

🆚 Compare TSLA vs NIO→

2. Novonix Limited ($NVX)

Exchange: ASX

Market Capitalisation: $545m

Stock price (as of 11/04/2023): A$1.13

Stake Platform Bought / Sold (Jan 2023 - March 2023): 63% / 37%

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'.

Despite the previous excitement surrounding Novonix, the company's stock price has been battered over the last year as the market has turned against companies still in the development phase. After reaching a peak of $10.68 in late-2021, Novonix now currently sits at just $1.13 – almost 90% down from its peak. Still, if the company manages to hit it's 2030, things may finally start to look up for Novonix.

3. Nio Inc ($NIO)

Exchange: NYSE

Market Capitalisation: US$104b

Stock price (as of 11/04/2023): US$9.05

Stake Platform Bought / Sold (Jan 2023 - March 2023): 60% / 40%

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 much smaller than Tesla, being less than 20% of Tesla's market cap and generating a comparatively smaller RMB 49b (US$7.1b) revenue in the year ended December 2022. Over 90% of Nio’s revenue comes from vehicle sales, with the remaining revenue earned through sales of car accessories, charging piles and used cars.

There was some concern last year that the new U.S. semiconductor ban to China would affect the electric vehicle industry. Fortunately for NIO investors, Chinese EV companies use chips not on the current sanctions list. Similar to most other companies on this list, however, NIO experienced a lagging share price, losing over 50% in the last 12 months.

4. Magnis Energy Technologies ($MNS)

Exchange: ASX

Market Capitalisation: $242m

Stock price (as of 11/04/2023): A$0.24

Stake Platform Bought / Sold (Jan 2023 - March 2023): 61% / 39%

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 an 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, focusing on business expansion and acquisition of new plants rather than revenue generation. As such, Magnis has actually only relied on investors to keep in going, raising US$75m in funds just last month (March 2023).

Without any operating track record, an investment in companies like Magnis assumes the technology will stand the trials of commercialisation. Despite the company's auditor raising a going concern doubt, Stake investors still continue to trade the company's shares, with more buys than sells. Whether or not Magnis can go on to someday offer a return on investment remains to be seen, however, it is definitely a company to keep watch of.

5. Lucid Group, Inc. ($LCID)

Exchange: NASDAQ

Market Capitalisation: US$14b

Stock price (as of 11/04/2023): US$8.03

Stake Platform Bought / Sold (Jan 2023 - March 2023): 63% / 37%

With a focus on luxury electric vehicles, Lucid is hoping it found its market share niche. In the last year, the company has expanded to service clients across the Middle East and has opened new retail stores across the U.S., Canada, and Europe.

As Lucid continues to ramp up production and expand its car offering with the Lucid Air Grand Touring Performance and the Gravity SUV, expenses continue to mount. In the year ended December 2022, the company recorded a total revenue of US$608m, but with a cost of goods sold of US$1.6b. Having a negative gross profit margin is a red flag for analysts, and adding the other operating expenses, the company ended the year with a net loss of US$1.3b.

The company's share price is down over 60% in the last 12 months, and Lucid has very recently laid off 18% of its workforce in order to cut costs. Things may not be looking great for LCID, however, investors seem to remain interested in the company, with LCID able to raise US$600m in equity funding just a few months ago.

6. Li-S Energy Limited ($LIS)

Exchange: ASX

Market Capitalisation: $56m

Stock price (as of 11/04/2023): $0.34

Stake Platform Bought / Sold (Jan 2023 - March 2023): 71% / 29%

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 ($BA).

The technology still has a ways to go before Li-S batteries are able to compete on a global scale. However, after the LIS stock price saw a 53% decline over the past year, Li-S could be one of the stocks to watch for those looking to make a diversified bet on the future of clean energy.

💡Related: Lithium Stocks on ASX: Top Lithium Shares to Watch→

7. Rivian Automobile, Inc. ($RIVN)

Exchange: NASDAQ

Market Capitalisation: US$13b

Stock price (as of 11/04/2023): US$14.81

Stake Platform Bought / Sold (Jan 2023 - March 2023): 71% / 29%

Rivian ($RIVN) caught a lot of attention last year after it announced a joint venture with Mercedes-Benz (OTCMKTS: DMLRY) to build two new vans for the U.S. and European markets. Despite having its IPO in just November 2021, Rivian is now part of the Nasdaq-100 index, and has raised over US$2.3b from interested investors at the start of 2023.

Last year was a big year for the company. In the year ended December 2022, the company generated a total of US$1.65b in revenues, multiples more than its 2021 revenue of US$55m. While it still ended up with a net loss after factoring expenses, it's no wonder why investors were keen to offer the company more capital to expand.

For investors watching the growing company, Rivian's share price has dropped 88% from its peak and is down 62% in the last 12 months alone. After its IPO price of US$78 per share, its current share price may be an attractive entry point.

🆚 Compare RIVN vs PSNY→

8. Arrival SA ($ARVL)

Exchange: NASDAQ

Market Capitalisation: US$110m

Stock price (as of 11/04/2023): US$0.14

Stake Platform Bought / Sold (Jan 2023 - March 2023): 58% / 42%

Over the last 12 months, the ARVL share price has declined 96% as the company struggles to get its expenses under control. To provide an illustration, it's gone from US$3.10 per share just 12 months ago to just $0.14 in April 2023. Despite cutting 30% of its workforce in July, shares continued to free-fall as investors sold out of the stock.

While that is worrying, ARVL still makes this list as a company to keep at eye out for. 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, a larger percentage of Stake investors are still purchasing the stock than selling it.

9. Xpeng Inc. ($XPEV)

Exchange: NYSE

Market Capitalisation: US$71b

Stock price (as of 11/04/2023): US$10.28

Stake Platform Bought / Sold (Jan 2023 - March 2023): 63% / 37%

Located in Guangzhou, Guangdong, China, XPeng is a relatively new company, only being established in 2015. Despite that, its experienced tremendous growth, earning RMB 9.7m (US$1.4m) in 2018 to RMB 26.85b (US$3.4b) in 2022. This electric vehicle manufacturer delivered 120,757 vehicles in FY 2022, a 23% year-on-year increase.

Like all the other EV stocks on this list, XPEV's stock price plummeted 59% in the last 12 months. While it has grown revenue tremendously over the last year few, so did its net loss, as its total loss for 2022 widened by almost 50% from 2021.

Despite that, 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$189m

Stock price (as of 11/04/2023): US$1.11

Stake Platform Bought / Sold (Jan 2023 - March 2023): 44% / 56%

The only one of the electric car stocks listed in this article to have more sell trades than buy trades by Stake customers last quarter was U.S.-based electric van manufacturer the Workhorse Group. The small-cap company previously hit a high of US$40.61 in Feb 2021, before slowly losing steam and tumbling down a total of 97% since then.

The selloff was largely in line with the correction of the EV bull market, however, Workhorse has also been recording large net losses and even had negative revenue for FY 2021 (this means that customer returns were larger in value than sales). Additionally, WKHS has been plagued with a class-action lawsuit all through 2022, though it finally intends to end this by offering the plaintiffs a settlement.

Stake customers don’t seem keen to invest in WKHS, however, institutional and retail investors alike have continued to particate in WFHS' equity offerings. Additionally, WKHS's clients include major corporations like FedEx, UPS and Ryder, making it still one to continue watching to see if it can whether the storm and come out on top.

💡Related: Graphite stocks on ASX→

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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.