Best Ev stocks for long-term


electric vehicle stocks

Introduction

A car parked on the side of a road

When looking for the best electric vehicles (EVs) stocks for the long term, you’ll want to consider companies that are leaders in this growing industry. Some of the top EV stocks include Tesla (TSLA), Ford (F), and General Motors (GM). These companies are all investing heavily in developing new electric vehicles and expanding their production capacity. If you’re looking for a more diversified option, you might consider a fund that specializes in the EV market. The iShares Electric Vehicles and Future Mobility ETF (ICY) is one such fund, and it has holdings in many of the leading EV companies. Regardless of which stock or fund you choose, it’s clear that the electric vehicle market is growing rapidly and is here to stay.

Electric Vehicles are a Hot Trend

A car parked in front of a mirror

Electric vehicles are a hot trend, and they’re growing in popularity every year. According to research from IHS Markit, global electric-vehicle sales will reach nearly 14 million by 2025, representing 10% of all light-duty vehicle sales. By 2040, IHS estimates that one in four new vehicles sold will be electric vehicles.

While many investors are excited by this trend, you’ll want to do your research before investing in EV stocks or ETFs. Market leader Tesla is valued at more than $50 billion, and rivals such as Mercedes-Benz have recently entered the market with electric vehicles. As these and other companies grow (or shrink) and shift their focus, your investment will be affected. For example, if a company like VW ramps up production of electric vehicles at the expense of its traditional vehicles, you’ll want to make sure that it’s properly valuing the new line before buying shares.

Advantages of EV

Electric vehicles have many advantages over traditional gas-powered cars. Here are some of the key benefits:

Reduced emissions. EVs produce zero emissions, which is great for the environment.

Reduced fuel costs. EVs run on electricity, which is typically much cheaper than gasoline.

Increased efficiency. EVs are more efficient than gas-powered cars, and they can often travel farther on a single charge.

Increased range. With advances in battery technology, many EVs can now travel hundreds of miles on a single charge.

Reduced maintenance costs. Electric vehicles require less maintenance than gas-powered cars since there are no oil changes or tune-ups needed.

Disadvantages of EV

It can be difficult to find charging stations. While the lack of availability here and there isn’t a deal-breaker, it’s something to consider before investing in an electric vehicle. Another disadvantage is that EVs typically cost more than gas-powered cars. This varies from model to model, but we recently saw GM introduce an electric car that has the same starting price as its gas-powered Equinox.

Competition is growing. Tesla’s main rivals include Mercedes, General Motors, and other major automakers.

Reduced towing capacity. EVs typically don’t have enough power to tow heavy loads like other vehicles do, which can be a problem for certain buyers.

Long charging times. If you’re looking to drive a long distance, it can take an hour or longer to charge the battery on some EVs, which means that you’ll have to stop multiple times during your trip.

Batteries do not last forever. Unlike traditional gas-powered cars, electric vehicles require a new battery after a certain number of years. This means that your car will eventually lose its value, although the price of replacement batteries is likely to decrease over time.

Limited choice. There are many EVs on the market today, but we’re still seeing automakers introduce these vehicles in small numbers each year until they reach full production capacity.

Limited cargo space. As you can see from the image above, sedans and hatchbacks tend to have less room for passengers and cargo than SUVs and trucks do.

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