Plus, according to a new study by Ernst & Young, the sales of electric vehicles could outpace those of combustion engines in the next 12 years in the U.S., Europe, and China, reported Bloomberg. “By 2045, non-EV sales were seen plummeting to less than 1% of the global car market,” the news service added
“EY sees Europe leading the charge to electric, with zero-emission models outselling all other propulsion systems by 2028. That tipping point will arrive in China in 2033 and in the U.S. in 2036, EY predicts,” noted Bloomberg.
In short, electric vehicles will be a big part of our greener future. That’s another strong reason to “back up the truck” when it comes to EV stocks.
| TSLA | Tesla | $193 |
| KARS | KraneShares EV and Future Mobility ETF | $34 |
| DRIV | Global X Autonomous & EV ETF | $23.30 |
| PTRA | Proterra | $7.43 |
| LIACF | American Lithium | $1.73 |
| LIT | Global X Lithium ETF | $73 |
| CHPT | ChargePoint | $13.35 |
Cheap Electric Vehicle Stocks: Tesla (TSLA)
We can’t talk about electric vehicle stocks and not talk about Tesla (NASDAQ:TSLA), one of the top cheap electric vehicle stocks to own. Granted, TSLA stock has been a slow-motion train wreck this year. But that’s what happens amid growing competition, high inflation, softer demand, COVID issues in China, and economic uncertainties.
However, as simplistic as this sounds, Tesla will remain a leader in the EV space for quite some time. Plus, as one of the most hated stocks on the market right now, TSLA is a great “contrarian buy.”
In addition, Wedbush analyst Dan Ives just said, “We view this more of a logistical speed bump rather than the start of a softer delivery trajectory into the [fourth quarter and 2023] and remain bullish on the Tesla story,” reported Barron’s.
Oversold based on RSI, MACD, and Williams’ %R metrics, TSLA stock can rebound to $230 a share again in the near term.
KraneShares Electric Vehicles and Future Mobility ETF (KARS)
Rebounding from a 52-week low, the KraneShares Electric Vehicles and Future Mobility ETF(NYSE:KARS) is starting to climb.
In fact, after bottoming out around $30, I believe that it can again challenge its prior resistance around $40 a share. When it comes to blistering hot sectors, I always believe that buying ETFs is a good idea. Not only do ETFs offer solid diversification, but they’re also often cheaper to buy than stocks.
With an expense ratio of 0.70%, the KARS ETF gives investors exposure to companies involved in the production of EVs and their components.
KARS attempts to trade in-line with the Bloomberg Electric Vehicles Index, which includes the stocks of companies involved with electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses, according to KraneShares.com.
Some of the ETF’s top holdings include Albemarle (NYSE:ALB), BYD Co. (OTC:BYDDY) Tesla, Panasonic Holdings (OTC:PCRFY), Aptiv (NYSE:APTV), Samsung, and Lucid Group (NASDAQ:LCID).
Global X Autonomous & Electric Vehicles ETF (DRIV)
Another one of the best ways to diversify is with the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV).
With an expense ratio of 0.68%, this ETF invests in “companies involved in the development of autonomous vehicle technology, electric vehicles, and EV components and materials. This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt,” as noted by Global X.
While the DRIV ETF was beaten down to $18.91 in recent weeks, give it time. In light of the acceleration of EV sales, I believe this ETF can move closer to $26 again in the short term.
Proterra (PTRA)
Proterra (NASDAQ:PTRA) has been explosive. The stock found support around $4.40, and is trading above $7.60 today. I think that it can test $9 soon.
Improving Proterra’s outlook, the White House announced that it would award $1 billion award to U.S. school districts to allow them to replace older buses with electric models. According to The White House, “The awards will go to school districts in all 50 states and Washington D.C., in addition to several U.S. territories and institutions serving federally recognized Tribes. The new awards will support the purchase of 2,463 buses, and 95% of these buses will be electric.”
Aside from school buses, the company is revolutionizing transit with its Proterra ZX5, which can get about 340 miles on a single charge..
Proterra’s earnings have been just as impressive. For Q3, the company posted revenue of $89.77 million, up about 50% year-over-year. That was $8.73 million above analysts’ average estimate. It also provided 2022 top-line guidance of $300 million to $325 million, representing 24% to 34% growth.
There’s a lot to get excited about when it comes to PTRA stock.
American Lithium (LIACF)
At just $1.73 a share, and a market capitalization of $360 million, American Lithium (OTC:LIACF) is dirt cheap. I don’t expect it to stay that way, though. Given the electric vehicle boom, coupled with lithium’s troubling supply-demand issues, the price of lithium should accelerate higher.
Headquartered in Vancouver, the company is focused on its lithium projects in Nevada and Peru. In Nevada, the company owns the TLC claystone lithium deposit, and it “started to receive first [samples] with positive drill results from its 2022 drill program, including the best intersections and grades recoded to date at TLC and this momentum continued to build post quarter end,” says the company.
Over in Peru, it’s developing the advanced stage Falchani hard-rock lithium deposit. The company says that process is advancing. with initial samples expected shortly.
Cheap Electric Vehicle Stocks: Global X Lithium ETF (LIT)
Investors can also consider buying the Global X Lithium ETF (NYSEARCA:LIT).
After all, nearly every electric vehicle uses lithium-ion batteries, and lithium is a key component of those batteries.
Not only does this ETF offer great diversification, but it also does so at a relatively low cost. Trading at $73.15 a share, with an expense ratio of 0.75%, the LIT ETF offers exposure to many different types of stocks with a lithium connection.
Among its top holdings are American lithium miner Albemarle (NYSE:ALB), Chinese EV maker BYD (OTCMKTS:BYDDY), Tesla, Chinese EV battery maker Contemporary Amperex Technology Co, and another U.S. lithium miner, Lithium Americas (NYSE:LAC), to name a few.
LIT stock is nearly 24% below its 52-week high, but its slide has just made it more attractive.
ChargePoint Holdings (CHPT)
With the electric-vehicle boom underway, we’ll need thousands of charging stations, and that is great news for ChargePoint Holdings (NYSE:CHPT).
According to a recent McKinsey & Co. report, “The goal is to install 500,000 public chargers €”publicly accessible charging stations compatible with all vehicles and technologies €”nationwide by 2030. However.. we estimate that America would require 1.2 million public EV chargers and 28 million private EV chargers by that year.”
Globally, an estimated 290 million charging points will be required by 2040, and that would necessitate an investment of $500 billion, according to the World Economic Forum.
While CHPT delivered Q2 earnings per share in August that disappointed the Street, its guidance is more important.
For the quarter, the company posted a loss of 28 cents a share on sales of $108 million. Meanwhile, analysts, on average, were looking for a loss of 25 cents on sales of $103 million.
However, CHPT did maintain its full-year sales forecast range of $450 million to $500 million. It also expected to generate about $130 million of revenue in Q3.
Even better, as EV demand accelerates, analysts say the global electric vehicle charging station market could be worth $115 billion by 2028.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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