In this article, we discuss the 10 electric car stocks to buy for 2022. If you want to skip our detailed analysis of these stocks, go directly to the 5 Electric Car Stocks to Buy for 2022.
In 2021, electric vehicle sales surged in China and Europe, with the countries reporting 1.2 million and 1.4 million bookings of EV units, respectively, despite the COVID-19 pressures, representing a change in consumer attitudes towards electrification. To meet the surging demand, many traditional automakers like General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) have also invested heavily to deliver new electrified models, from research and development to factory redesign.
By the end of 2021, EV sales worldwide are expected to reach 5 million units, which represents a 66% growth as compared to 2020, with major markets being China, Europe, and the US. By 2030, 48% of all automobile sales will be attributed to electric vehicles, according to market research.
Political support for electrification has helped the EV market grow in 2021 despite the automotive industry being crippled with supply chain disruption and semiconductor shortages. For instance, in the US, President Joe Biden announced a $174 million stimulus package, committing to support the transition to electric vehicles, consequently investing in charging infrastructure and topping up the federal tax credit. The Biden administration has proposed a new target of reaching 50% electrification by 2030.
With climate change threatening the world we live in, many companies have set a net-zero emissions target, and that has significantly escalated the demand for electric vehicles for transportation of raw materials, delivery of products, and other corporate uses, since companies realize that electric vehicles play a significant role in the monumental objective of zero emission targets.
As more people shift to electric vehicles, all companies in the EV space will benefit from the transition. For example, EV charging stations, battery manufacturers, and semiconductor companies will experience higher demand for their products and services. The EV sector is gaining its due recognition, and is expected to deliver IPOs worth $100 billion by the end of 2023 as new entrants get set to dominate the market.
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Some of the most popular electric car stocks include Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), Nikola Corporation (NASDAQ:NKLA), and XPeng Inc. (NYSE:XPEV).
Our Methodology
For the best electric car stocks to buy for 2022, we have selected EV manufacturers that had mostly positive analyst ratings, growth potential, and strong company fundamentals. We have ranked these companies according to their popularity among the hedge funds tracked by Insider Monkey in the third quarter.
Electric Car Stocks to Buy for 2022
10. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: N/A
Rivian Automotive, Inc. (NASDAQ:RIVN) is an American electric vehicle manufacturer, founded in California in 2009. After its approximately $12 billion IPO in November 2021, Rivian Automotive, Inc. (NASDAQ:RIVN) is expected to compete with Tesla, Inc. (NASDAQ:TSLA), the current EV market leader.
Rivian Automotive, Inc. (NASDAQ:RIVN), in addition to being an EV automaker, is also creating in-house batteries which will help in production and reduce dependence on market supply chains. Rivian Automotive, Inc. (NASDAQ:RIVN)’s upcoming EV models include an SUV, a pickup truck, and a delivery van, which Rivian Automotive, Inc. (NASDAQ:RIVN) is building as part of an exclusive partnership with Amazon.com, Inc. (NASDAQ:AMZN). The company is also planning to construct its own charging stations across the US and Canada.
Tigress Financial analyst Ivan Feinseth initiated coverage of Rivian Automotive, Inc. (NASDAQ:RIVN) on December 10 with a Buy rating and a $147 price target. According to the analyst, Rivian Automotive, Inc. (NASDAQ:RIVN) has an “innovative and exciting product line” that allows investors good exposure to the ongoing electrification of the global auto industry. Another plus for Rivian Automotive, Inc. (NASDAQ:RIVN) is its partnership with Amazon.com, Inc. (NASDAQ:AMZN), which makes the stock a compelling investment opportunity.
Rivian Automotive, Inc. (NASDAQ:RIVN), valued at over $100 billion, announced on December 10 that it will build a vehicle assembly and battery plant in Georgia to expand operations.
Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the most exciting electric car stocks to buy for 2022, in addition to Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), Nikola Corporation (NASDAQ:NKLA), and XPeng Inc. (NYSE:XPEV).
9. Lordstown Motors Corp. (NASDAQ:RIDE)
Number of Hedge Fund Holders: 12
In the third quarter, billionaire Ken Griffin’s Citadel Investment Group was one of the largest stakeholders of Lordstown Motors Corp. (NASDAQ:RIDE), increasing its stake in the company by 87%, holding 1.34 million shares worth $10.71 million. Overall, 12 hedge funds tracked by Insider Monkey in Q3 were bullish on Lordstown Motors Corp. (NASDAQ:RIDE), with total stakes amounting to $25.92 million.
A $75 million investment in Lordstown Motors Corp. (NASDAQ:RIDE), an American EV automaker, by General Motors Company (NYSE:GM) afforded the company a seat on Lordstown Motors Corp. (NASDAQ:RIDE)’s board, and Lordstown Motors Corp. (NASDAQ:RIDE) became a key supply chain partner of General Motors Company (NYSE:GM). With the backing of General Motors Company (NYSE:GM), Lordstown Motors Corp. (NASDAQ:RIDE) is looking to compete with EV industry leaders like Nikola Corporation (NASDAQ:NKLA), Rivian Automotive, Inc. (NASDAQ:RIVN), and Tesla, Inc. (NASDAQ:TSLA).
The main EV offering of Lordstown Motors Corp. (NASDAQ:RIDE) to date is Endurance, an electric pickup truck, which the company plans to launch by April 2022. In October, Lordstown Motors Corp. (NASDAQ:RIDE) announced that Foxconn Technology Group would become the official assembler of the Endurance EV, and this will allow Lordstown Motors Corp. (NASDAQ:RIDE) quicker time to market.
On November 12, R.F. Lafferty analyst Jamie Perez upgraded Lordstown Motors Corp. (NASDAQ:RIDE) to Hold from Sell with a price target of $7, up from $3. The analyst expects that the Endurance EV will get to production under the company’s new outsourcing model with Foxconn.
Lordstown Motors Corp. (NASDAQ:RIDE), on November 11, reported its Q3 results. The company announced a loss per share of $0.55, beating estimates by $0.03.
8. Canoo Inc. (NASDAQ:GOEV)
Number of Hedge Fund Holders: 13
Canoo Inc. (NASDAQ:GOEV), an Arkansas-based company founded in 2017, is an EV manufacturer that plans to sell an electric minivan by 2022, and the product lineup at Canoo Inc. (NASDAQ:GOEV) includes commercial vehicles for ride sharing and rent-a-car services. Canoo Inc. (NASDAQ:GOEV) is an undervalued company in the EV space that has attractive growth potential, which makes it one of the best electric car stocks to buy for 2022.
Canoo Inc. (NASDAQ:GOEV) reported on November 15 its Q3 results, posting a loss per share of $0.47, in line with analysts’ estimates.
At the end of September, Canoo Inc. (NASDAQ:GOEV) announced a partnership with AVL Technologies to develop, test, and validate Advanced Driver Assistance Systems software for Canoo Inc. (NASDAQ:GOEV)’s Lifestyle Vehicle. The technology will provide a human interface that gives vehicle feedback to notify drivers to make safer choices on the road, and the software will be solely owned by Canoo Inc. (NASDAQ:GOEV).
The third quarter database of Insider Monkey suggests that 13 hedge funds were bullish on Canoo Inc. (NASDAQ:GOEV), with total stakes valued at $10.95 million. D E Shaw recently added Canoo Inc. (NASDAQ:GOEV) to its Q3 portfolio, with 268,162 shares worth more than $2 million.
7. Nikola Corporation (NASDAQ:NKLA)
Number of Hedge Fund Holders: 15
Nikola Corporation (NASDAQ:NKLA) is an electric vehicle manufacturer from Phoenix, Arizona. Nikola Corporation (NASDAQ:NKLA) plans to deliver its first batch of electric trucks by the fourth quarter of 2021. On November 4, Nikola Corporation (NASDAQ:NKLA) reported its Q3 results, posting a loss per share of $0.22, beating estimates by $0.04.
Wedbush analyst Daniel Ives on November 8 raised the price target on Nikola Corporation (NASDAQ:NKLA) to $15 from $10 and kept a Neutral rating on the shares. The analyst stated that Nikola Corporation (NASDAQ:NKLA) has taken some important steps towards building back its Wall Street credibility. He thinks the company’s Arizona factory build-out, key partnerships, and now settling the SEC issues are “all positives in the eyes of the Street”.
For Q4 2021, Nikola Corporation (NASDAQ:NKLA) plans to achieve some significant milestones. The company is set to deliver pre-series Nikola Tre BEVs for use on public roads hauling customer freight, announce additional fleet testing dealers/customers, purchase land for a centralized hydrogen production hub facility and commercial on-site gaseous generation station, and announce additional hydrogen infrastructure partners.
In the third quarter, 15 hedge funds monitored by Insider Monkey were long Nikola Corporation (NASDAQ:NKLA), up from 12 funds in the preceding quarter. Jeff Ubben’s Inclusive Capital is the biggest shareholder of Nikola Corporation (NASDAQ:NKLA) in Q3, with 10.2 million shares worth $109.6 million.
6. Fisker Inc. (NYSE:FSR)
Number of Hedge Fund Holders: 15
A California-based EV automaker, Fisker Inc. (NYSE:FSR) was launched in 2016 and is working on Fisker Ocean, an electric sports utility vehicle that is designed from vegan and recycled materials.
BofA analyst John Murphy raised the price target on Fisker Inc. (NYSE:FSR) to $24 from $18 on November 10 and kept a Neutral rating on the shares, stating that Fisker Inc. (NYSE:FSR) is somewhat likely to raise low-cost capital, with estimates based on the company’s valuation.
Publishing its third quarter results on November 3, Fisker Inc. (NYSE:FSR) posted a loss per share of $0.38, missing estimates by $0.04.
Fisker Inc. (NYSE:FSR) unveiled new SUVs on November 17, stating that the vehicles would have better driving ranges than Model Y Tesla, Inc. (NASDAQ:TSLA).
A total of 15 hedge funds reported owning stakes in Fisker Inc. (NYSE:FSR) in the third quarter, with total stakes worth $228.1 million. This is compared to 16 funds in the preceding quarter, with stakes equaling $256.2 million.
Fisker Inc. (NYSE:FSR) is one of the best electric car stocks to buy for 2022, in addition to Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), Nikola Corporation (NASDAQ:NKLA), and XPeng Inc. (NYSE:XPEV).
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Disclosure: None. 10 Electric Car Stocks to Buy for 2022 is originally published on Insider Monkey.
