As the world moves toward clean energy while simultaneously starting a crackdown on fossil fuels energy to tackle the climate catastrophe, it is impossible to leave the combustion engines operating. Under these circumstances, it is no wonder that the demand for electric vehicles (EVs) and self-driving cars is increasing at a breakneck speed. Experts forecast that by 2040, EVs will dominate 58 percent of the market. The lowering price of battery materials and much more diverse charging facilities are likely the most significant game-changers in terms of EV accessibility.
Another reason for this is that several huge tech companies, like Google and Nvidia, are attempting to expand their automotive products. Indeed, Apple, the American Tech Giant, has been rumoured to be working on an electric and autonomous vehicles (driverless automobile) project in secret for the past few years.
Long-term investors may consider investing in several companies that will play a crucial part in the approaching electric vehicle revolution. As the electric vehicle revolution becomes widespread in the following years, shares of such companies could help investors earn exceptional returns.
5 Canadian Electric Vehicle Stocks You Should Invest In
Here are five electric vehicle stocks with the most promising future growth for Canadian investors who want to get ahead of the game.
Magna International (TSX:MG)
Magna International is a $35 billion auto components manufacturer headquartered in Aurora. Exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision, and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contracted vehicle assembly are among the product groups offered by this automobile provider. It has 158,000 employees worldwide, with North America accounting for almost half of Magna’s revenue while Europe accounts for about 44%.
In FY 2021, sales climbed by 11% to $36.2 billion, compared to a 4% growth in worldwide vehicle manufacturing. As a result, net diluted earnings per share were $5.00, and adjusted diluted earnings per share stood at $5.13, compared to $2.52 and $3.95 in 2020. In addition, the company returned approximately $1 billion to stockholders in the form of share repurchases and dividends.
The company offers a quarterly dividend of 0.45 USD per share. Trading at $77.71 as of March 17, 2022 (2:32 PM), this Canadian stock is a promising investment for Canadian investors. The current market capitalization of 23,082,595,057 and a healthy trade volume of 664,805 with a 12.20 P/E ratio and an EPS of 6.32 almost guarantee profitability.
Tesla Inc. (NASDAQ:TSLA)
Tesla, situated in Palo Alto, California, was founded in 2003 and is a vertically integrated sustainable energy vehicles firm that also makes electric automobiles with the goal of transitioning the world to electric mobility. For residential and commercial properties, including utilities, the company supplies solar panels and solar roofs for energy generation and batteries for stationary storage. Tesla boasts a diverse range of integrated vehicles, including luxury and medium sedans and crossover SUVs. In addition, the company intends to sell more cheap sedans and small SUVs and a light truck, a semi-truck, and a sports car. In 2021, Tesla delivered a little more than 936,000 units worldwide.
In Q4 of 2021, operating cash flow fewer capital expenditures (free cash flow) was $2.8 billion, while the cash and cash equivalents increased by $1.5 billion, bringing the total cash and cash equivalents to $17.6 billion.
Trading at $993.98 as of March 23, 2022 (4:19 AM), Tesla is an established name in the EV sector. With the success of Tesla’s Electric Truck, it is evident that it will not be coming down anytime soon. The trillion-dollar market cap of 1,027,285,895,182 is a testament to its stability and profitability.
BlackBerry Limited (TSX:BB)
BlackBerry, previously the world’s top smartphone manufacturer, is now just a software services provider to provide organizations with end-to-end secure communication. The firm offers enterprise endpoint management and protection, concentrating in regulated sectors like government and embedded software for the automobile, healthcare, and industrial markets. The company has 3,497 employees across the globe. The company protects over 500 million endpoints, including 195 million cars. Based in Waterloo, Ontario, the company uses AI and machine learning to create revolutionary cybersecurity, safety, and data privacy solutions. It is a pioneer in endpoint security, endpoint management, encryption, and embedded systems.
BlackBerry Limited has deepened its partnership with Marelli, a major automaker and renowned global Tier 1 automotive supplier. The previous technology collaboration joint venture in 2016 and 2018 focused on Digital Cluster initiatives. As a result, Marelli’s Cockpit Domain Controller, a vital in-vehicle system with Infotainment and Digital Cluster functionalities, is powered by the BlackBerry QNX® Neutrino® RTOS and BlackBerry QNX® Hypervisor.
Trading at $9.40 as of March 23, 2022 (4:32 AM), this electric vehicle stock is stable in a highly volatile electric car market. The trading volume of 3,295,800 is undoubtedly a highly dynamic one.
GreenPower Motor Company Inc. (TSXV:GPV)
GreenPower develops, manufactures, and distributes an all-electric medium and heavy-duty road vehicle lineup, including transit buses, school buses, shuttles, cargo vans, and cab and chassis. GreenPower uses a clean-sheet design to create all-electric vehicles designed from the ground up to be battery-powered and emit zero emissions while integrating worldwide sources for crucial components. This OEM platform enables GreenPower to fulfill the needs of various operators while also providing standard parts for simplicity of maintenance and warranty access. GreenPower began operations in southern California after being created in Vancouver, Canada. GreenPower has been listed on the Toronto Stock Exchange since November 2015, and it will complete its NASDAQ IPO and listing in August 2020.
GreenPower Motor Company Inc. appointed the RWC Group as a distributor for GreenPower’s BEAST (Battery Electric Automotive School Transportation) school bus in the states of Arizona and Washington, as well as Clark County in Nevada, on March 14, 2022. These regions have roughly 20,000 school buses.
Trading at $8.00 as of March 23, 2022 (4:38 AM), this stock is expected to grow further in the upcoming months. GreenPower has an evergrowing market capitalization, currently at 184,727,160.
Ballard Power Systems Inc. (TSX:BLDP)
Ballard Power Systems Inc is a fast-growing clean energy startup. The company is developing and commercializing proton exchange membrane fuel cells. The company’s primary activity is developing, manufacturing, selling, and servicing fuel cell devices for various applications, concentrating on motive power (transportation and logistics) and stationary power (back-up power, supplemental power, and distributed generation). A fuel cell is an environmentally friendly electrochemical device that generates energy by combining hydrogen fuel and oxygen (from the air). Its primary source of revenue is in China, although it also has operations in Germany, Belgium, Japan, Denmark, the United Kingdom, and other nations.
Heavy-Duty revenue climbed by 89 percent to $22.5 million, owing to increasing sales to customers primarily in China, Europe, and North America. In addition, heavy-Duty Motive revenue climbed by 92 percent in Europe and 268 percent in North America, respectively. Ballard received $21.2 million in new orders in Q4 and delivered orders worth $36.7 million, leading to an Order Backlog of $93.1 million after the quarter.
Trading at $14.81 as of March 23, 2022 (4:07 AM), the company holds immense growth potential. The stocks’ profitability is further boosted by a market capitalization of $4,410,560,976 and a trading volume of 1,109,203.
Why You Should Invest in Electric Vehicle Stocks in Canada
With so many electric vehicle makers in the market and electric vehicle production at an all-time high, the future for EV stocks seems bright. Still, you probably haven’t even driven any electric vehicle, let alone considered purchasing one, so the prediction may appear bold, but stick with me.
We are in the midst of the most significant automotive revolution since Henry Ford’s first assembly line began turning in 1913. And it’ll probably happen far faster than you think. Many industry watchers and mainstream automakers believe we have already passed the tipping point where electric vehicle (EV) sales will quickly surpass gasoline and diesel vehicles.
By 2035, General Motors says it will only build electric vehicles, and Ford says all vehicles sold in Europe will be electric by 2030. Volkswagen believes electric vehicles will account for 70% of total sales by 2030.
This isn’t a passing trend, and it’s not greenwashing. Yes, the fact that many countries worldwide have set goals to prohibit the sale of gasoline and diesel automobiles has accelerated the process. The death of the internal combustion engine is, nevertheless, inescapable due to a technological revolution. And technology revolutions are notoriously swift.
The Bottom Line
Analysts believe that as we move closer to a world powered by renewable energy, EV stocks will become more profitable. The success of electric vehicles and the automotive industry that employs these methods is evidenced by the establishment of more and more electrical stations, energy production from non-traditional sources, and growing battery demand. The electric vehicle industry is the fastest-growing market globally, with a trillion-dollar turnaround that no other market can match. These solid growth prospects point out that investing in this sector at the right time can ensure high returns on investments.
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Electric Vehicle Stocks Canada
A wave of new deals – including a partnership with Enersy and Envoy Technologies to provide electric vehicle charging stations – has bolstered the promising case for Blink Superpower. The stock is currently on a large tear, and the cash flow it gives the company could be acquired or expanded. A wave of new deals, including collaboration with EnerSys and Envoys technology for electric vehicle charging stations, complements the support.
The company focuses on manufacturing medium and heavy-duty electric vehicles for transit, schools and charter buses. Tesla was founded in 2003 by Elon Musk and specializes in electric cars, lithium-ion batteries, energy storage and solar panels to sell products. The company’s first car was the Roadster sports car, which went into operation on 22 July 2008. Tesla has had many ups and downs over the years, but the company has had more success with its Model S sedan, critically acclaimed by Consumer Reports and Motor Trend magazine, which named it 2013 Car of the Year in 2013.
I expect companies’ financial position to improve in the coming years as more countries begin to use electric vehicles for public transport, which will increase demand for Tesla vehicles. Consensus estimates from Bay Street analysts suggest Tesla’s revenue will rise to $60 million in fiscal 2022, compared with $13 million in fiscal 2020. As a European automaker, Tesla hits the accelerator when the industry is amidst a massive shift from the internal combustion engine to electric vehicles.
Europe will be the world’s largest market for electric vehicles by 2020, overtaking China, which will lose its top spot as the world’s most populous country by 2021. Last year, European governments introduced new incentives for consumers to buy electric vehicles. In addition, the European Union imposed severe sanctions on car manufacturers whose fleets fail to meet new emissions targets to speed up the transition to electric vehicles. The new EU plan, released Wednesday, aims to tighten fleet emissions targets for car manufacturers and create a million charging points for cars on European roads by 2025.
In addition to its automotive push, Nio, Tesla’s biggest competitor in China, has begun to offer a battery-as-a-service concept in which car buyers can lease batteries for their vehicles, saving up to $10,000 on the price of a new vehicle by allowing buyers to replace batteries after a few years of use. Meanwhile, Uber has built its $96 billion business by using cars it has never manufactured, bought or sold, such as the Facedrive, to connect customers looking for a ride-sharing service and offer an environmentally friendly solution. And Biden has announced plans to switch the state’s vehicle fleet to electric vehicles.
In a year when more people are staying at home and carbon emissions are plummeting at a record pace, Facedrive has managed to grow its business in an all-around savvy move. They are expanding this successful model with a significant acquisition at the end of 2020. They acquired Steering, an electric car subscription company that is the largest clean energy producer in the United States. Steering is a subscription model for electric vehicles that fundamentally change the traditional car ownership model.
Now is the right time for long-term investors to invest in companies that will play a significant role in the impending electric vehicle revolution. The green electricity boom took hold in 2020, and many predict it will reach new heights in 2021. With recent announcements to boost the electric vehicle industry, we look at two electric vehicle inventories that you can explore in 2021 and beyond.
Magna International shares have soared 92 percent in the past year and are up 28 percent yearly. The company is in talks with Apple over its electric cars’ hype. So while the Mg share has fallen month-on-month (so far) by three percent, it is likely to grow as the focus expands on electric vehicles.
As more new and exciting electric vehicles come onto the market, Autocanada should be able to ride the wave. Sales slumped this year due to the COVID 19 pandemic, but the country has seen a recovery in purchasing power as demand for electric vehicles has risen. As a result, the world is leaving behind traditional gasoline and diesel-powered vehicles.
The electric car industry consists of companies that focus on manufacturing electric cars, trucks, vans and commercial vehicles and companies that offer parts and services for electric vehicles. In addition, IT companies look as significant hardware manufacturers necessary to build natural gas and other alternative fuel cars behind the scenes. Thus, while IT manufacturing plays a central role in the electric car industry, it also offers a unique opportunity to gain a foothold in the alternative fuel market.
Tesla (TSLA) is a company that has redefined the automotive industry with its electric cars. Tesla Model S was one of the first electric vehicles on the market and is still one of the best. If you have ever wondered if electric cars are suitable for you, read this blog post to learn more about what separates Tesla from other electric car manufacturers.
On Monday, shares in Lucid Motors rebounded in their trading debut, taking their place among the most prominent new electric vehicles. Shares traded on the New York Stock Exchange under the symbol LCID rose 10.6% to $26.83. Lucid Motors’ market capitalization is comparable to that of China’s electric vehicles NIO (NIO), XPeng (XPEV) and Li Auto (LI), which produce tens of thousands of cars.
But they pale compared to Tesla (TSLA), which has a market capitalization of $64.1 billion. Lucid Motors was founded in 2007 under Atieva and are a manufacturer and development company for luxury electric vehicles.
INN is examining battery metal companies for some of the most significant gains in 2021. Battery metals such as lithium, cobalt and graphite are essential for lithium-ion batteries used to power electric cars, and demand is expected to increase significantly over the next decade.
As the energy transition continues to unfold, automakers are increasingly aware of the need to secure lithium, cobalt and graphite battery metals to achieve their ambitious electrification targets. We have collected some of the best battery metal stocks on TSX and TSXV with annual earnings, including lithium, graphite and cobalt (with special nickel), for investors looking to enter the battery metal space. This release contains forward-looking information subject to various risks, uncertainties and other factors that may cause actual events or results to differ materially from those projected in the forward-looking statements.