The best electric vehicle stocks to buy with $100

After correcting by more than 21% this year, the S&P500 the index has been on an upward trend over the past two months. It is now down just 13.2% for the year at the time of writing. Still, overvaluation concerns and supply chain challenges led to a more pronounced correction in electric vehicle (EV) inventories. As markets recover and supply chain constraints resolve, EV inventories are expected to rebound.

If you’re looking to invest in electric vehicle stocks but think you don’t have a lot of money to spend, here’s some good news: you can invest in the best electric vehicle stocks with as little as $100. Here are three such stocks to consider buying right now.

1.Ford Motor Company

Although Ford Motor Company (F -5.04%) isn’t the first name that comes to mind when we talk about electric vehicle companies, the iconic automaker has big ambitions in the electric vehicle space. By the end of 2023, Ford plans to produce 60,000 electric vehicles per month. The company aims to produce 2 million electric vehicles per year by the end of 2026. In 2021, Ford sold 3.9 million vehicles worldwide. So 2 million electric vehicles means about half of Ford’s sales could be electric by 2026. That kind of sales would make the company a top player in the electric vehicle market.

Ford enjoys some key advantages over newer pure electric vehicle makers. First, it has a very strong brand with a loyal following. These customers will likely opt for the electric version of their favorite Ford model rather than switch to a new EV manufacturer. The company’s leadership position in the US automotive market, along with its deep manufacturing expertise, gives it an edge over the competition.

For example, Ford recently entered into a series of agreements and memorandums of understanding (MOUs) to secure battery capacity to fully meet its 2023 electric vehicle production targets. The company has already secured 70% of the battery capacity needed to support 2 million electric units by the end of 2026. Deep industry expertise and financial strength enable Ford to secure supply even on a constrained market. Overall, Ford is one of the best EV stocks to buy right now.

2. Nio

Chinese electric vehicle manufacturer Nio (NIO -0.53%) is one of the top pure-play electric vehicle enterprises in China. Nio’s innovative Battery-as-a-Service (BaaS) offering, advanced driver assistance features and impressive models have established it as a key player in China’s growing electric vehicle market . It more than doubled its deliveries in 2020 and 2021 before hitting supply chain constraints and pandemic-related restrictions in 2022. Yet Nio increased its 2022 deliveries through July by 22% by compared to the same period last year.

Nio has deployed more than 1,000 battery swap stations in China so far. Additionally, it has installed nearly a thousand charging stations with more than 5,000 chargers across China. Although China’s electric vehicle market is competitive, Nio’s growth shows that there is strong demand for its innovative products and services. As supply chain and COVID-related constraints resolve, Nio should see deliveries increase at a faster rate.

Nio’s stock has corrected 34% so far this year, providing an attractive entry point for long-term investors.

3. Lucid Group

At the end of last year, Lucid Group (LCID -3.88%) impressed customers and investors with its stylish cars that offered longer range than was available on the market. Nine months later, the company is struggling to ramp up production. The company has cut its 2022 production target twice. In July 2021, Lucid planned to produce 20,000 units in 2022. In May, the company updated the target to 12,000 to 14,000 vehicles. Three months later, Lucid saw that goal was also unachievable and cut it in half to 6,000-7,000 vehicles.

Obviously, investors are worried. The stock price is down 50% since the start of the year. Lucid cites supply chain constraints as the reason for the dwindling production outlook.

But all is not lost for Lucid. Young EV makers face challenges in initial ramp-up. Lucid has sufficient liquidity to run its operations well into 2023. Additionally, despite its premium fares, Lucid Air’s bookings continue to grow. This is due to the superior quality and features of its cars. The company has over 37,000 reservations for Lucid Air. Additionally, the Saudi government has committed to purchasing up to 100,000 vehicles from Lucid. All of these factors could help Lucid succeed in ramping up production in the coming months.

However, investors should note that Lucid has yet to prove that it can operate profitably; the stock therefore carries significant risks.

About Robert Pierson

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