Electric vehicles (EV) is a great sector for beginner investors to buy into as it represents the future of the auto industry. U.S. President Joe Biden recently stated that by 2030, 50% of new vehicles sold will be fully electric.
If that wasn’t good enough of a reason to invest, these companies are also helping the environment by building innovative technology to reduce the impact vehicles have on our world. Almost every big car manufacturer in the world is working on some sort of EV effort, but which are the best electric vehicles stocks for beginners to invest in?
Ferrari (BIT: RACE) is a great stock for beginners to invest in because it is relatively new in the EV space. This means investors could get in early before the company really ramps up its electric efforts. After refusing to join the EV space for years, the Italian-founded company has finally accepted that non-gas-powered vehicles are the future.
The famous sports car maker, founded in 1947, said it is expecting to launch its first all-electric supercar in 2025. The iconic brand has not been totally out of the loop though as the company has been busy building a hybrid supercar, the SF Stradale.
This traditional company’s move into EVs really highlights how massive the market opportunity is in this space. Ferrari may have been reluctant to take on this new trend, but it’s clear now that even the world’s most luxurious carmakers are going to have to jump on the EV bandwagon if they want to stay relevant in today’s world.
2. General Motors
Back in June, General Motors (NYSE: GM) increased its spending on electric and autonomous efforts to a whopping $35 billion through 2025. Previously, the motor company had a target of $27 billion, so this is a significant bump and proves how dedicated it is to investing in its green future.
General Motors is planning on launching 30 new EVs by 2025. In late 2021, GM is dropping its Hummer EV truck while a high-end Cadillac electric SUV is set to be released in mid-2022.
CEO Mary Barra has significantly helped General Motors keep its automotive crown by using her forward-thinking approach to push the company into new profitable ventures such as its EV efforts. Under Barra’s leadership, General Motors is becoming a global force in EVs and autonomous driving.
Last up on our list is Ford (NYSE: F), an old industry player in the motor game. Just like General Motors, Ford also has recently hiked its spending on its EV plans. The Detroit-based firm now plans to spend over $30 billion by 2025.
It also announced that it now expects 40% of its total global sales to be all-electric by 2030. Ford also has an ambitious target to release 16 EV models by 2022. In mid-June, Ford said that it had taken 100,000 reservations for its F-150 Lightning electric truck. This version will be a rival to Tesla’s (NASDAQ: TSLA) Cybertruck which is expected to be on the market by mid-2022.
Ford is also working with Argo AI, an autonomous driving technology firm in which it owns a considerable stake in, and Lyft (NASDAQ: LYFT) on bringing self-driving cars an everyday reality. These plans represent another opportunity for Ford to bring in more revenue by expanding its use of EV models.
The EV space represents just one of the industries with the most potential for investors, for a full breakdown, check out MyWallSt’s shortlist of market-beating stocks. Start your free access now.
Financial Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.