4 electric vehicle stocks you can buy and hold for the next decade

Electric cars have become so mainstream that it’s hard to still think of them as a technology that’s only just beginning to take hold. For much of their existence, they needed government assistance in the form of tax credits to stimulate demand from car buyers, and in some cases they still do, with the federal government doling out up to $7,500 in credits for purchases.

Yet electric cars are also increasingly seen as a viable option on their own, and with automakers like General Motors promising to phase out all of its gas-powered vehicles by 2035, they will become the first choice option for many in the market.

This means they should also become a top choice for investors looking for long-term stocks to buy and hold for the long term. The following four actions are a good starting point.

Image source: Tesla.

You’re here

Any discussion of electric vehicle stocks can start and end with You’re here (TSLA 1.14% ). As the top maker of electric vehicles on the market today, Tesla is a solid choice for investors. It makes more electric vehicles than any other manufacturer, delivering nearly a million vehicles last year, and aims to sell 20 million electric vehicles a year by 2030.

That may be overstated, as the entire auto industry sells between 65 and 75 million a year, but it’s clear CEO Elon Musk sees a very bright future for electric vehicles, especially branded ones. You’re here. Investors should too.

Tesla has achieved consistent profitability for 10 straight quarters, something other EV makers can’t say, and as it expands globally, its sales are also expected to increase. Its Gigafactory in Shanghai is ramping up production, while a new factory in Berlin will help supply Europe with new Teslas.

The stock isn’t cheap by conventional measures, but its industry-leading position warrants a premium, a premium in which its business can grow as its capacity and capabilities increase.

Rivian

If Tesla is the mature electric vehicle on the market, then Rivian ( RIVN -0.44% ) is one of the upstarts. It went public just three months ago, and while its debut was less than stellar – the stock is down 60% from its highs and down 36% so far this year – it remains a long-term electric vehicle title.

Where Tesla focuses on sedans and crossover SUVs, Rivian targets pickup trucks, SUVs and commercial vans, all major profit centers for legacy vehicle makers. In short, Rivian is following the money, and that should mean years of growth for the EV maker.

Production of its R1T pickup began late last year, and although it fell just short of its delivery target of 1,200 (it produced 1,015), it is now quadrupling production to 200 vehicles per week against only 50 previously.

It also needs to ramp up production, as it plans to deliver 10,000 delivery vans to Amazon this year as part of an order of around 100,000 over the life of the contract. By prioritizing growth over profits from the start, Rivian hopes to achieve a critical mass that, like Tesla, will eventually be profitable.

Ford Mustang Mach-e smoking its tires.

Image source: Ford.

Ford

Ford ( F 3.96% ) also advances the production of electric vehicles. While it won’t go as far as GM to get rid of all its gas-powered vehicles, it will invest $30 billion in its electrified fleet by 2025, with its Ford+ initiative calling for 40% of its entire fleet will be fully electric in 2030.

That seems like a much more reasonable proposition than eliminating all internal combustion engine vehicles, because many people still don’t want electric cars.

He already owns the second best-selling electric car on the market with his Mustang Mach-E, with more than 27,000 vehicles sold last year. The cars are so popular that they only spend an average of 14 days on dealer lots.

This year is also off to a strong start, with Ford reporting that sales of electric vehicles grew almost four times faster than the overall electric industry. It has already sold more than 13,100 electric vehicles this year, up 169% from 2021, and two new electric vehicles are coming out: the F-150 Lightning and the Transit Pro commercial van.

This old-school automaker knows how to compete for today’s car buyer, and it’s a stock pick for the set and forgotten part of your portfolio.

Person loading his car at sunset.

Image source: Getty Images.

QuantumScape

With QuantumScape (QS -0.13% ), I’m a little on my laurels because this start-up is still in the pre-sale period of its life cycle and its technology, although promising, has not been fully proven. Yet, because of the transparency with which this EV battery maker shares its progress with the public, if it succeeds, it could revolutionize the industry.

QuantumScape is developing a new type of lithium battery that can recharge to 80% capacity in less than 15 minutes. This has not been possible with the technology currently on the market, but the QuantumScape design seems increasingly capable of meeting or even exceeding these goals.

He is supported by volkswagen, which gave it a $100 million investment and entered into a joint venture with the EV battery maker after certain milestones were reached. Commercial production of its batteries isn’t expected until 2024 or 2025, so there’s a long ramp up ahead for this market-beaten stock.

QuantumScape is certainly a risky bet, but for a very small part of your long-term holdings, it may be the one that offers the best returns.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

About Robert Pierson

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