The electric vehicle (EV) sector is heating up. Price wars, record deliveries, and technological breakthroughs related to the batteries that power EVs have all been announced in the last month alone.
The outlook for growth in the global electric vehicle market continues to be robust. Fortune Business Insights is forecasting worldwide EV sales to grow from $500 billion this year to $1.58 trillion by 2030. That growth is being powered by the transition to electric vehicles that every major automaker is now undertaking. As the market continues to grow and mature, clear winners and losers will emerge.
Large, established automakers look to have an edge right now, but they risk being upset by smaller start-ups in the space. How it all shakes out will be fascinating to watch. Here are three millionaire-maker EV stocks to buy before the window closes.
Tesla (TSLA)
Investors can take advantage of a buy-the-dip opportunity in Tesla (NASDAQ:TSLA) stock. The share price declined more than 10% following the company’s Q2 earnings. Tesla reported lower margins due to price cuts and other incentives offered on its EVs. This news sent the stock sharply lower. However, lost in the focus on declining margins, was the fact that Tesla actually beat Wall Street consensus forecasts for Q2 results.
The EV maker announced revenue of $24.93 billion for Q2 versus the $24.47 billion expected among analysts, according to Refinitiv data. Earnings per share (EPS) came in at 91 cents versus the forecasted 82 cents. Tesla also reaffirmed its target to deliver 1.8 million vehicles for all of this year. Unfortunately for TSLA stock, the company also said that its operating margins came in at 9.6%, the lowest level for the last five quarters.
But don’t be fooled. Tesla’s share price is not likely to remain down for long.
Toyota (TM)
Shares of Toyota Motor Corp. (NYSE:TM) have been gaining ground ever since the Japanese automaker unveiled a comprehensive new electric vehicle strategy in mid-June.
Specifically, Toyota announced a full line-up of EVs with expected rollout dates. Not only that, but they revealed plans to manufacture the EV batteries. The company said it will develop and manufacture both through a new business unit called “BEV Factory” that it has created.
Toyota said BEV Factory will aim to produce 1.7 million vehicles per year by 2030. Among the more impressive announcements is its aim for a driving range of 1,000 kilometers (620 miles) for all of their future EVs. In comparison, the Tesla Model 3 sedan has among the longest driving ranges of any EV at 570 km on a single battery charge.
TM is also developing a method for mass producing solid-state batteries for its EVs. This was music to investors’ ears, leading to a 19% year-to-date gain in TM stock.
Ford Motor Co. (F)
Ford Motor Co. (NYSE:F) is getting serious about driving sales of its electric vehicles and gaining market share.
On the eve of rival Tesla’s Q2 earnings print, Ford announced that it is cutting the price of its electric F-150 Lightning pick-up truck by nearly $10,000. This will be for the least expensive version of the Lighting truck. Meanwhile prices for all other versions, including the top line Platinum trim, will drop by at least $6,000 from current levels.
Additionally, the Detroit automaker has stated plans to triple production of the F-150 Lightning pick-up truck by this fall. Ford sold only 4,466 Lightning trucks in Q2 of this year after a fire in one of the vehicles led it to cease production for five weeks.
Ramping up production of the Lightning and other EVs is a top priority of Ford CEO Jim Farley. The leader continues to tout his ambitions to surpass Tesla as the number one EV maker in America. F stock has increased 20% this year and is up 40% over the past five years.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
