Stocks

Top 7 EV Stocks to Buy and When to Buy Them

By 02/08/2021 No Comments

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Tesla is undoubtedly one of the most hyped-up stock in the market right now, mainly because people believe it to be a company of the future. And that is true to an extent because the future of automotive is definitely electric.

We’re clearly moving in the direction of saying goodbye to gas and oil and adapting to electric vehicles to save our planet, which might be one of the biggest shifts in any industry that is happening right now.

Whenever there is a significant shift in an industry, a lot of new companies gain market share at the cost of their old school competitors. Tesla is undoubtedly the biggest beneficiary of the Electric Vehicle (EV) revolution. 

But looking at the Tesla stock, one might feel a bit reluctant before investing in it because of its already hyped price. But you know what, Tesla is not the only EV stock that is going to gain out of this situation. 

There are several other EV stocks as well that will gain a lot. And the best part is, they haven’t exploded yet like Tesla, meaning you can still buy them at a reasonable price.

Today, we’re discussing 7 such EV stocks that are not as big as TSLA or NIO or those that support the EV ecosystem rather than directly making electric vehicles. 

7 Best EV Stocks

As you know, EV stocks are super hyped-up right now, and the majority of them are overvalued at the time of writing. If you’re a long-term value investor like me, you may be looking for optimal prices to purchase these stocks. That’s why we’ve specially mentioned the best optimal prices you can consider while placing your buy order for these stocks.

The list is created using our special process called the invest diva diamond analysis, and just like a diamond, it has five points – Capital, Intentional, Fundamental, Sentimental and Technical. 

Using this method, you can also create your own investment strategies and select the best stocks for investment by yourself. To learn more about it, you can attend the free on-demand masterclass here.

7. Electrameccanica Vehicles (SOLO)

The seventh on our list today is ElectraMeccanica Vehicles Corp. (SOLO). ElectraMeccanica is a Canadian designer and manufacturer of environmentally efficient electric vehicles, with a $586 million market cap.

Looking at the fundamentals of the company on the Stockcard platform, it looks like ElectraMeccanica needs some improvement, especially in its operations and finances. 

SOLO fundamentals

The combined market sentiment on SOLO appears to be neutral, with some investors bullish and some shorting it. Considering this is a very young company, we’d categories it as a high risk asset suitable only for young investors and people who can bear high-risk in their portfolio.

Looking at its price chart, volatility has been ever-present since the company went public back in 2017, and in the past two years, it has not yet been able to reach the all-time high level of almost $16. 

Best EV stocks SOLO

The price is currently consolidating below the Ichimoku cloud. And if you throw the Fibonacci retracement levels on the chart, you’d notice that the key resistance level currently stands at $6.72 and $4.41. 

If you want to add SOLO to your portfolio, you can consider setting your buy limit orders at these prices and then hold until you reach your preferred rate of return to make a profit. 

6. Arcimoto (FUV)

Number six on the list is Arcimoto (FUV). Another small-cap company with around $749 million in market capitalization. Arcimoto inc is in the business of manufacturing ultra efficient three-wheel electric vehicles.

Checking this stock on the stockcard platform, you’d notice that the company is in a more favorable position for growth, but just like Electrameccanica, it needs improvements in its operations and finances section. 

Looking at the chart, you can see that the stock has been in a huge uptrend for the last couple of months and is currently at around a brand new all-time high level just above $35.

FUV Technical Analysis

Adding our friendly Fibonacci retracement levels to the charts, we can quickly see that some key psychological levels exist at around $24, $21, and $17.

You can consider a combination of these levels as you but limit orders to get your hands on Arcimoto shares at a more optimal price.

5. Blink (BLNK)

Number five on today’s list of best EV stocks is Blink (BLNK), with just over $2 billion in market cap. Blink doesn’t make cars, but it provides electric vehicle charging services. The company offers both residential and commercial EV charging equipment, enabling people to easily charge at various location types.

It went public back in 2008, and its stock price hit over $3700 before crashing all the way down to its current market range below $50. But despite the massive crash, they managed to stay in business, which means they’re probably doing something right, and with a good management, there’s still a lot of hope for the future.

Looking at its stockcard profile, we notice that similar to Arcimoto, it has high growth potential but lacks stable operations, specifically, it shows a few shortcomings in its revenue growth performance and profitability. 

The market sentiment for this stock is actually pretty bearish and has put its stock price under a lot of pressure, at least in the short-term.

Now, let’s look at the chart for BLNK, applying our favorite indicators, the Ichimoku cloud and Fibonacci retracement onto it. If you don’t know what these are, then you got to attend the free masterclass here 👇

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The stock price has been a lot more volatile in the past few weeks but still creating higher highs and higher lows while staying above the Ichimoku cloud, which is a really bullish sign if you ask.

Having a look at the Fibonacci retracement, tracking the most recent uptrend since November 2020, shows that the key support levels exist at around $42, $36, and $28.

Best EV stocks BLNK

This is again a buy and hold stock. Based on past price action, the next resistance level for BLNK is at $94, where you can look to take profits. 

4. XL Fleet (XL)

Next up is XL Fleet, with over $2.5 billion in market cap. It is in the business of providing vehicle electrification solutions to commercial and municipal fleets. There is not much hype around this stock, but looking at glassdoor, they are hiring aggressively, which is a signal that the company is optimistic about its future growth.

Looking at the chart, its price is already at the 61% Fibonacci retracement level and has broken below the Ichimoku cloud, which are both bearish signs for the stock.

XL Fleet Chart Analysis

If you really want to add this to your portfolio, then you could consider the current market price of around $20 or set a buy limit order at $15, which is the next support level according to Fibonacci retracement. 

3. Fisker (FSR)

Getting into the top three EV stocks, the third one on the list today is Fisker (FSR), with over $4 billion in market cap. It is a California-based e-mobility service provider with sustainable vehicles focusing on revolutionizing the automotive industry by developing emotionally desirable and eco-friendly electric vehicles.

This is another undervalued EV stock because it’s been trading right at the 38% Fibonacci retracement level of around $15, below the Ichimoku cloud, which means it could drop even further to the next Fibonacci level at $12.54. 

Best EV stocks Fisker

If you wanna get your hands on Fisker, then some good buy limit orders would be $12.54 and $8.91, which is the next key support level for the stock. 

2. Workhorse Group (WKHS)

The runner-up for the list of best EV stocks is Workhorse Group (WKHS), with over $4.3 billion in market capitalization. The company designs, develops, manufactures, and sells high-performance medium-duty trucks with powertrain components. One of their products, the E-100, is an electric powertrain, which is an all-electric medium-duty truck. 

Stockcard shows that the majority of investors are over-excited about WKHS while it has fair growth potential and needs some improvement in its operations.  

On the charts, the stock is trading above $40 and has nearly gained 85% in the last couple of weeks, which makes one think it is already overvalued. However, some may argue that since this is just the beginning of electric powertrains, and especially with Joe Biden’s EV push, even at this price, it could be a bargain.

Best EV stocks Workhorse

Based on the current highs, the key Fibonacci support levels are at $33, $27, and $22, respectively. So if you’re not comfortable with the current prices, you can look for these levels to add WKHS to your portfolio. 

1. QuantumScape (QS)

Number one on the list with the highest market cap of all other stocks on the list is QuantumSpace (QS), with over $15 billion in market cap. 

This company develops the next generation solid-state lithium metal batteries that can be used in electric vehicles. The company has been in operations for nearly a decade and is backed by big names like Volkswagen and Bill Gates.

In December 2020, the company announced that its solid-state batteries will charge faster, hold more power, and last longer than any traditional EV batteries. Stockcard also shows high growth potential for this company.

If you look at its chart, it looks pretty gloomy as it has just broken below the Ichimoku cloud and approaching the 78% Fibonacci retracement level of $37. 

QS chart technicals

This is actually a very typical behavior of newly IPO tech stocks. The same thing happened to Facebook, Cloudera, and so many others. That’s why, as a strategy, you should stay away from newly-listed tech companies until their first big dip. 

You can place your buy limit orders for QuantumSpace at $37 and $23 according to the Fibonacci retracement levels.

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