Do EV Stocks Offer Good Value Currently?
Electric vehicles may be driving toward being value investments. With the federal Inflation Reduction Act including tax credits for people buying electric vehicles as well as $60 billion for renewable energy infrastructure, more Americans could be buying electric vehicles in the years ahead.
EVs and charging stations becoming ubiquitous could put some growth stocks into the value range. Consider these investments for their profit potential as EVs become more commonplace.
The stock that’s synonymous with electric cars is Tesla Inc. (
TSLA, Financial). This stock is still in the growth stage, but it does get an 8 out of 10 score in financial strength, a 9 out of 10 value ranking and an 85 out of 100 GF Score from GuruFocus. Tesla bulls say the company will be a disrupting force to not only electric cars, but also batteries, autonomous vehicles and solar generation systems.
The company that made the Model T is now a future force in electric vehicles with the F-150 Lightning truck and Mustang Mach-E. These vehicles are not everywhere just yet, but they have a huge potential to be in the future. Even though Ford Motor Co. (
With a low price-earnings ratio of 6.96 and a GF Score of 69 out of 100, General Motors Co. (
GM, Financial) may be an EV value stock to buy and hold for a profit. General Motors has a stable full of electric vehicles, including the luxury Cadillac Celestiq and Lyriq models, the Chevrolet Bolt, Silverado and Blazer and the GMC Hummer.
Wait, Apple Inc. (
AAPL, Financial) is an EV stock? This technology stock is moving into electric vehicles, announcing that an autonomous EV is in the works. The maker of the iPhone and iPad may not have cars in showrooms next week, but you could feel confident in investing in Apple stock since it has a GF score of 98 out of 100. It does have a price-earnings ratio of 27.25, but in this volatile year, Apple has grown more than 15% in share price.
Not a value investment since it hasn’t turned a profit yet, Blink Charging Co. (
BLNK, Financial) could be in a profitable position if EVs begin to be in every garage. The company is developing a network of charging stations so EV drivers can charge up while parking, shopping, watching a movie or going on vacation. GuruFocus scores Blink Charging as a 69 out of 100, with its highest rating for momentum.
Global X Lithium and Battery Technology ETF
One way value investors can ease the risk of investing in electric vehicles is through buying shares of exchange-traded funds. This ETF tracks a market cap-weighted index of global lithium miners and battery producers, both of which are essential to EV development. While past performance does not predict future profits, the Global X Lithium and Battery Technology ETF (
EV stocks may not all fit within a value portfolio, but options such as General Motors and Apple can give value investors exposure to electric vehicle technology without the risks new ventures bring.