5 Electric Car Stocks to Watch (Besides Tesla and Apple)

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Apple (NASDAQ: AAPL) stock continues to rise following the announcement that the technology innovator will release a fully autonomous electric vehicle by 2024.

Meanwhile, Tesla (NASDAQ: TSLA) stock surged as CEO Elon Musk revealed an ambitious goal for 2020: Deliver 500,000 Teslas for the year.

To hit the goal, the Tesla team must deliver a total of more than 181,000 cars for the quarter. “Please go all out to make it happen,” Musk wrote last week in an email to employees that was published by the website Electrek.

Tesla also announced several software updates for the holiday season, including new horn sounds and new games, Tesmanian’s Eva Fox reported. The games include Cat Quest, Solitaire and The Battle of Polytopia, which Musk tweeted will soon be available in a multiplayer online version in the vehicles.

“Entertainment will be critical when cars drive themselves,” Musk tweeted.

See: Tesla’s Net Worth — How Much Is Tesla Worth Right Now?
Find: Elon Musk’s Biggest Bets That Paid Off

Both Apple and Tesla have passionately loyal fans and marquee names driving their success in the EV market — and in the stock market. But the stocks’ high price tags could present a barrier to entry for new investors unless those investors opt for fractional shares.

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Several other publicly traded EV manufacturers deserve a second look heading into 2021, especially if president-elect Joe Biden expands EV tax credits and incentives, which many experts expect.

It’s also worth watching stocks related to the technology required to manufacture self-driving EVs, including battery producers and lidar developers.

See: 6 Reasons Tesla Might Be the Stock You Need to Buy
Find: 13 Cars That Are Bad News for Tesla

Keep an eye on these rising companies if you’re seeking to diversify your investment in EV stocks in 2021.

NIO (NYSE: NIO)

InvestorPlace calls Chinese EV maker Nio a “mini-Tesla.” And while Macroaxis says the stock is “overvalued” at $44.06 right now, it remains a good long-term investment. The stock has gained 10 times its value in the past year, and InvestorPlace says the company’s underlying fundamentals “remain exceptionally favorable.”

XPeng (NYSE: XPEV)

China’s Xpeng, or Xiaopeng Motors, represents a good buy-and-hold option right now for those who believe in sustainability and want to show their support for an EV manufacturer. The stock is currently down 12.8% for the month and has shown volatility for most of the year. Still, XPeng just entered the European auto market with deliveries to Norway, giving Tesla and Volkswagen a run for their money.

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With a 342% year-over-year increase in vehicle deliveries in November and improved gross profit margins, investors are recommending buying XPeng during the dip.

See: 50 Most Environmentally Friendly and Affordable Vehicles
Find: 2021 Cars and Trucks That Are Worth Saving Up for Next Year

Velodyne (NASDAQ: VLDR)

As self-driving EVs gain public attention, InvestorPlace recommends taking a second look at lidar manufacturer stocks. Lidar, or “light radar,” is a crucial piece of technology for helping autonomous vehicles “see” the road. The technology can also be used as a safety feature to warn drivers of an impending collision in vehicles that are not fully autonomous.

Lidar developer Velodyne is using its lidar not just for EVs, but for robots and drones. This diversity makes Velodyne less of a risk than other lidar manufacturers when it comes to long-term investing. Ford, Hyundai and Apple are amongst the manufacturers who could be using Velodyne lidar in their vehicles.

Luminar (NASDAQ: LAZR)

InvestorPlace calls Luminar stock “an early entry point into the future of transportation.” The lidar developer from Orlando, Florida debuted on Nasdaq at the beginning of December and promptly doubled in price.

As with a few of the stocks on this list, LAZR is currently experiencing a slight dip, down to $31 at market close on Monday, down from $35 last week. Luminar’s long-term value sits in its technology, which is hailed as more affordable than that of its competitors, and its illustrious list of 50 industry partners, including seven of the top 10 global automotive original equipment manufacturers.

See: Gov. Newsom Wants to Ban Gas Cars by 2035 — The True Cost of Going Electric
Find: 10 Stocks That Could Bounce Back in 2021

Workhorse Group (NASDAQ: WKHS)

Analysts call this electric delivery vehicle manufacturer a buy now, in spite of problems that have included battery supply issues and production delays due to COVID-19. BTIG analyst Gregory Lewis said in a Yahoo! Finance article that investors could see gains of up to 19%. Meanwhile, Investopedia recently called Workhorse one of the “fastest growing electric car stocks,” along with Nio.

Consider grabbing this stock during the dip if you’re looking for an affordable EV investment with great growth potential.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

5 Electric Car Stocks to Watch (Besides Tesla and Apple)
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