Near-term demand for electric vehicles (EVs) is currently cooling, but the long-term investment case remains the same. Here is a collection of EV stocks to watch to capitalise on opportunities in the industry.
- Tesla chief wants more control at the EV maker before pushing ahead with his AI plans.
- XPeng unveiled its flying car concept at the Consumer Electronics Show in Las Vegas earlier this month.
- Volkswagen subsidiary Cariad has partnered with Bosch to test autonomous charging.
The Voting Control Stock
Tesla [TSLA] boss Elon Musk has big artificial intelligence (AI) plans, but wants more shares in the automaker before he pushes ahead with them. In a post on X, Musk said he’s seeking approximately 25% of voting control — “enough to be influential, but not so much that I can’t be overturned”. If he doesn’t get his way, he may look to build AI products outside of the company. The EV leader delivered 484,507 vehicles in Q4, taking total deliveries for 2023 to approximately 1.8 million.
The AI-Powered System Stock
BYD [BYDDY] unveiled its AI-powered smart car system, XUANJI, last week. XUANJI “seamlessly perceives changes in the internal and external environment of the car in real time ... enhancing driving safety and comfort,” the Chinese company said in a press release. Also announced at its Dream Day 2024 event were its plans to invest RMB5bn in constructing multiple all-terrain test-driving sites across China. BYD overtook Tesla as the top-selling EV maker for the first time in Q4.
The Flying Car Stock
XPeng [XPEV] subsidiary AeroHT showed off its flying car concept at the Consumer Electronics Show (CES) in Las Vegas earlier this month. According to a press release, the EV take-off and landing (eVTOL) aircraft will be available for pre-order in Q4 2024 and will ship to customers in Q4 2025. “The future of mobility goes beyond cars. Whether people want to travel by car, air or other ways, we aspire to change what’s possible,” said Xpeng President and Vice Chairman Brian Gu. The XPeng share price has reversed 36% since the start of the year.
The Automatic Charging Stock
Volkswagen [VWAGY] software subsidiary Cariad and Bosch [BOSCHLTD:NS] are partnering on EV charging, the two German companies announced at the CES trade show. They envisage a system that “guides EVs driverlessly to an unoccupied parking space furnished with a charge spot, where a charging robot recharges them automatically”. Volkswagen has experimented with charging robots before — a prototype was launched back in December 2020, designed to address the costly nature of stand-alone charging.
The Rental Car Stock
Stellantis [STLA] has received an order for 250,000 vehicles from SIXT, one of Europe’s largest rental car companies, which dropped Tesla as its key supplier back in December. Though only a small percentage will be EVs initially, SIXT has plans to electrify 70–90% of its European fleet by 2030. Stellantis CEO Carlos Tavares said in a press release that the partnership will be “the ultimate test drive and a critical checkpoint for us in the upcoming years as Stellantis transforms into a sustainable mobility tech company.”
Another Way to Invest in EVs
The Global X Autonomous & Electric Vehicles ETF
The Global X Autonomous & Electric Vehicles ETF [DRIV] holds Tesla, XPeng, Volkswagen and Stellantis as of 22 January. As of 31 December, consumer discretionary and information technology account for 36.5% and 29% of the portfolio respectively, while industrials and materials have weightings of 17% and 11.7%, respectively; consumer services and energy have single-digit weightings. The fund is up 1.4% in the past year through 23 January, but down 12.5% in the past six months.
The KraneShares Electric Vehicles & Future Mobility ETF [KARS] currently holds BYD, Tesla, Volkswagen and XPeng. As of 31 December, consumer discretionary has a 43.6% weighting, while industrial and materials accounted for 25.4% and 22.6% of the portfolio, respectively; information technology has been allocated 6.2%. The fund is down 32.9% in the past year and down 33.6% in the past six months.