Inventories of electric vehicles doubled Tesla‘s (TSLAWake Up Electric cars are looking to enter the mainstream – but not all are the same. Some auto stocks are more prepared than others for an electric future. Here are the top-rated electric vehicle makers and related electric vehicle plays.
- Lee Otto
- on semiconductors
- Lattice semiconductors
- Aehr Test Systems
The best EV stock to buy or view
The charts for most EV stocks remain under pressure. Widely established automakers and start-ups are speculative betting on the growth of electric vehicles, which are seen as an emerging field. Growth stocks were affected by inflation and the risk of a recession and slowdown in China.
It’s hard to find an EV stock with a good mix of fundamentals and technologies right now. These are our picks based on electric vehicle sales, strategy and growth plans.
Tesla shows a composite IBD rating of 93 and an EPS rating of 93. TSLA stock has an RS rating of 84, meaning it has outperformed 84% of all stocks in the IBD database over the past year.
Tesla stock extended its slide below the 50-day moving average. Stocks fell for the sixth consecutive day on August 18. The drop came amid price cuts by China’s leading electric car company and a massive market sell-off.
In the second quarter, Tesla had record sales of electric vehicles on the back of price cuts. The global EV company makes four models, primarily the Model 3 sedan and the Model Y crossover SUV. Delivery of the long-awaited Cybertruck is scheduled for later this year. It’s also planning a Semi and Roadster, whose launch dates have been pushed back.
Tesla expects to increase deliveries by 50% annually. In 2022, auto sales jumped 40%, year-over-year, to 1.31 million. Production increased 47% to 1.37 million.
me stock cars
China EV startup Lee Otto (L.I) carries a composite rating of 99, 81 EPS and 98 RS. Li Auto stock has been declining in recent trading sessions despite earnings and strong expectations. It is stable just above the 50-day line, which is a sign of strength in the current market.
After a strong 2022, Li Auto continues to outpace rival startups Nio and XPeng.
LI caters to the market for luxury electric SUVs. The company specializes in “long-range” electric vehicles, which use a small petrol engine to increase driving range.
The new L7 SUV is off to a solid start. My first all-electric car is due to be delivered by the end of the year.
Unlike many EV startups, Li Auto is profitable, despite its inconsistency.
Li Auto stock belongs to defect 50 List of the biggest growth stocks.
on semiconductor stocks
on semiconductors (on) has a composite rating of 83, an EPS rating of 77 and an RS rating of 87. Semiconductor stocks rose on July 31 on strong earnings and expectations, fueled by demand for automotive chips. Equities have undermined support at the 50-day line but are not far from the 52-week high.
ON Semiconductor, also known as Onsemi, sees a huge opportunity in electric vehicles.
Silicon carbide, or SiC, wafers can operate at much higher voltages, temperatures, and frequencies than conventional silicon-based semiconductors. This makes it a better choice for electric vehicles.
Silicon carbide semiconductors are Onsemi’s fastest growing product line. The company sees sales of silicon carbide wafers growing at a compound annual rate of 70% through 2027. It expects to capture 35%-40% of the silicon carbide market by 2027, up from 14% now.
Semiconductor lattice stock
Lattice semiconductors (LSCC) carries a Composite rating of 97, an EPS rating of 99, and an RS rating of 87. The grid stock also trimmed the 50-day line while staying off highs.
The company’s automotive and industrial segment is driving strong growth. In particular, Lattice is seeing high demand for specialized low-power FPGAs in electric vehicles.
FPGAs, or Field Programmable Gate Arrays, are semiconductor devices that play a major role in the latest automotive designs. They are used in car cameras and infotainment systems, for example.
Since electric cars are battery powered, lower power consumption is an important factor. This makes low-power FPGAs like those from Lattice well suited to the task, the company says.
Aehr Test Systems (ahr) carries a Composite rating of 94, an EPS rating of 48 and an RS rating of 97. Aehr stock rose on the July 14 earnings. It also fell below the 50-day line, while not far from the highs.
Aehr, a maker of semiconductor equipment, offers products for testing logic, optical and integrated memory circuits. The need for quality and reliability of semiconductors is increasing. As a result, the Fremont, California-based company is increasing its revenue by double digits.
Aehr is touting strong demand for equipment to test silicon carbide power chips used in electric vehicles.
Besides electric vehicles, silicon carbide chips are used in 5G wireless, aerospace, solar and wind energy, and other markets.
Tesla vs. BYD: Which EV giant is the best to buy?
Are electric vehicle stocks a good buy?
Two-character companies generally present the best candidates to buy and monitor stocks, according to CAN SLIM guidelines. First, they need a proven track record of earnings growth. Second, it should be technically strong and form bullish chart patterns.
Most new electric vehicle startups have neither. These include electric vehicle inventories Fisker (FSR), Kano (GOV), Faraday future (FFIE), Lordstown (Riding) And Whose (Characteristic). In fact, many startups are not yet producing electric vehicles.
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EV battery stock, EV charge stock
The growing world of electric vehicle stocks doesn’t end with automakers. A host of other companies provide car batteries, car charging stations, electric motors and other electric vehicle related products. Among those Charge Point (CHPT), EVgo (EVGO), charging flash (blnk) And square wall (WBX).
Helion (HYLN) develops electric powertrains for large trucks. Romeo Power (RMO) makes battery packs for commercial electric vehicle fleets. Quantumscape (QS) is aimed at solid metal lithium batteries.
magna (MGA) supplies battery enclosures and electronic gearboxes. It’s also an EV contract manufacturer.
Find Aparna Narayanan on Twitter at @employee.
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