In Tesla’s (TSLA) aftermath and as evs strive to enter the mainstream, EV stocks have surged, but not all of them are equal. For an EV future, some auto stocks are more ready than others. The best electric car manufacturers and EV plays are listed here.
Lithium and Battery Technology Global X ETF
Growing EV Sales: Tesla Stock
The best car and EV stock by market capitalization, Tesla stock, has an EPS Rating of 80 and an IBD Composite Rating of 63. After a rebound in June lifted shares above this support level for the first time in months, they are now trading side by side with the 10-week moving average. Following a decline to 2022 lows in June, the relative strength line for the TSLA stock is now beginning to move upward. It displays a sizable, protracted upswing.
Tesla anticipates a 50% yearly increase in vehicle deliveries. Tesla deliveries increased 87 percent to 936,172 in 2021.
Tesla deliveries in Q2 2022 increased by 27% from a year earlier but decreased by over 18% from Q1. Covid lockdowns caused the Shanghai factory to be offline for the most of April.
After production resumed at full capacity in June, Tesla China sales set a new record.
Tesla’s Model S Plaid is the company’s fastest vehicle to date, reaching 60 mph in less than two seconds from a standstill. Tesla produces four vehicles, namely the sedan Model 3 and the crossover SUV Model Y. The Roadster, Semi, and Cybertruck are also planned.
BYDDF Stock Provides a Stable Profit Outlook
BYD (BYDDF) has an EPS Rating of 56 and no Composite Rating. On July 14, BYDDF shares gapped up 7.7% to recover the 50-day moving average on the strength of strong profit guidance following surging EV sales. Close to highs are visible on the relative strength line. China’s BYD is listed in Hong Kong and traded over the counter in the United States.
Battery electric vehicles (BEVs) and plug-in hybrid electric vehicles are now the sole focus of Chinese automotive and battery giant BYD (PHEVs). Despite Covid-19 lockdowns, BYD more than tripled June and Q2 EV sales. That follows a year in which EV sales more than tripled. BYD sells EVs in Norway and is focusing on other international markets with support from Warren Buffett’s Berkshire Hathaway (BRKB).
Major battery manufacturer BYD could soon provide Tesla with electric vehicle batteries. Additionally, BYD manufactures its own chips, enabling its quick expansion in 2021 and thus far this year.
LI Stock Pauses Following Massive Spike
The stock of Li Auto has an EPS Rating of 76 and a Comp Rating of 94. An IBD 50 top growth stock, LI stock maintains a performance above key averages
After a seven-week rise from early May to late June, during which shares more than doubled in value, the Chinese EV stock is now consolidating near highs. The Li One SUV is sold by Li Auto. A tiny gasoline engine helps the Li One’s electric range by extending it. The second vehicle from Li Auto, the L9 SUV, debuted on June 21.
In spite of Covid challenges, Li Auto’s EV sales increased 63 percent between the entire second quarter in June and May. Li nearly tripled EV sales in 2021. The rate of revenue growth is triple digits.
Lithium For EV Batteries SQM Stock
SQM stock has an 83 EPS Rating and a perfect 99 Composite score. In May, the SQM stock effectively launched on the strength of solid results supported by rising lithium prices.
In June, Sociedad Quimica y Minera issued a sell signal after giving up double-digit breakout gains. But since late May highs, its relative strength line has retreated.
The deployment of lithium-ion battery-powered electric vehicles is being led by Chile’s SQM. Lithium prices spiked in Q1 as a result of an increase in demand for the essential component of EV batteries. Iodine and potassium, which are utilised in X-rays and fertilisers respectively, are also produced by SQM.
SQM, Tesla, and BYD Are Held by Lithium ETF
For the majority of 2020 and 2021, the Global X Lithium & Battery Technology ETF saw a strong rally. The LIT ETF increased by 44% in May 2022 after declining in the first four months of the year. Since then, it has somewhat retreated and is now again just below the 50-day/10-week lines.
Out of a possible 99, it has a Relative Strength Rating of 64. This indicates that over the past year, it has outperformed 64% of all the stocks in IBD’s database.
The lithium stock ETF’s largest holdings include Albemarle (ALB), SQM, BYD, and Tesla. Along with battery manufacturers, the LIT fund also makes investments in lithium miners and refiners. Lithium-ion and lithium iron phosphate (LFP) batteries are used in the majority of modern EVs.
Single-stock risk can be decreased by investing in an ETF, or exchange traded fund.
Which EV giant, Tesla vs. BYD, is the better investment?
Chip limitations will continue to affect EV stocks in the short term, but they are beginning to ease. Battery prices and scarcity could be a problem in the
As lithium and other raw materials fail to meet demand, battery prices and shortages could become a problem in the medium term. Longer term, increased government support for EVs is probably on the way, and increased EV production should help drive down car prices.
Stocks of electric vehicles should be purchased?
The top companies to buy and watch typically have two key traits, according to CAN SLIM recommendations. They must first have a proven track record of earnings growth. Second, the stock must be exhibiting signs of outperformance relative to the market and forming bullish chart patterns.
The majority of the new EV stocks, however, have neither. They consist of Xos, Lordstown (RIDE), Faraday Future (FFIE), Canoo (GOEV), Fisker (FSR), and Canoo (XOS). Actually, many