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The Best Electric Vehicle Stocks to Buy with $100

The Best Electric Vehicle Stocks to Buy with $100

After correcting more than 21% this year, S&P 500 index has shown an upward trend in recent months. It is now down just 13.2% for the year at the time of writing. Still, concerns about overvaluation and challenges in the supply chain resulted in a stronger correction in electric vehicle (EV) shares. As markets recover and supply chain constraints are resolved, EV stocks should recover.

If you want to invest in EV stocks but don’t think you have much money left, here’s some good news: you can invest in top EV stocks for as little as $100. Here are three such stocks to consider buying 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 EV companies, the iconic automaker has big ambitions in the EV space. By the end of 2023, Ford expects to produce 60,000 EVs per month. The company aims to produce 2 million EVs annually by the end of 2026. In 2021, Ford sold 3.9 million vehicles worldwide. So 2 million EVs mean that about half of Ford’s sales could be electric by 2026. That kind of sales would make the company a leading player in the EV market.

Ford has some significant advantages over newer, pure EV manufacturers. First, it has a very strong brand with a loyal customer base. These customers will likely go for the electric version of their favorite Ford model rather than switch to a new EV maker. The company’s leading position in the US auto market, as well as its deep manufacturing expertise, gives it a competitive edge.

For example, Ford recently signed a series of agreements and memoranda of understanding (MOUs) to secure battery capacity to fully meet EV production targets for 2023. The company has already secured 70% of the battery capacity needed to support 2 million EV units by the end of 2026. In-depth industry knowledge and financial strength enable Ford to secure supplies even in a tight market. All in all, Ford is one of the best EV stocks to buy right now.

2. Nioz

Chinese EV maker Nioz (NIO -0.53%) ranks among the top pure-play EV companies in China. Nio’s innovative Battery-as-a-service (BaaS) offering, advanced driver assistance features and impressive models enabled Nio to establish itself as a key player in the fast-growing Chinese EV market. It more than doubled its deliveries in 2020 and 2021 before facing supply chain restrictions and pandemic-related restrictions in 2022. Nevertheless, deliveries grew by 22% from 2022 to July compared to the same period last year.

Nio has implemented more than 1,000 battery change stations in China so far. In addition, it has installed nearly a thousand charging stations with more than 5,000 chargers across China. Although the Chinese EV market is competitive, Nio’s growth shows that there is sufficient demand for its innovative products and services. As the supply chain and COVID-related constraints disappear, Nio should see its deliveries grow at a faster pace.

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

3. Lucid Group

late last year, Lucide Group (LCID -3.88%) impressed customers and investors alike with its streamlined cars that offered a greater range than what was available on the market. Nine months later, the company is struggling to ramp up production. The company has cut its production target for 2022 twice. In July 2021, Lucid expected to produce 20,000 units by 2022. In May, the company raised the target to 12,000 to 14,000 vehicles. Three months later, Lucid found that this target was also unachievable and cut it by half to 6,000 to 7,000 vehicles.

It is clear that investors are concerned. The share price has fallen by 50% so far this year. Lucid cites supply chain constraints as the reason behind the lowered production outlook.

But all is not lost for Lucid. Young EV makers face challenges at startup. Lucid has sufficient liquidity to operate its operations well into 2023. In addition, Lucid Air’s reservations continue to rise despite the high prices. This is due to the top quality and features of his cars. The company has more than 37,000 reservations for Lucid Air. In addition, the government of Saudi Arabia has pledged to purchase up to 100,000 vehicles from Lucid. All of these factors can help Lucid successfully increase its production in the coming months.

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

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