car manufactures

Top Electric Car Stocks for Q4 2020

The electric auto industry is made up of companies that manufacture cars, trucks, vans, and commercial vehicles, as well as those that manufacture or supply electric automobile parts and service. This is a young, high-growth industry. As a result, companies such as Tesla Inc. (TSLA) are well known, but others are unfamiliar to many retail investors.

While many large automakers have electric vehicles under production, this report focuses on those companies considered to be largely pure-play electric car manufacturers. The industry is new enough that there is no clear benchmark index to reflect their performance. However, stocks in this industry can be compared to the 1-year trailing total return of the Russell 1000, which is 18.3%.  This data and all statistics in the tables below are as of September 20.

Here are the top 3 electric car stocks with the best value, the fastest earnings growth, and the most momentum.

Best Value Electric Car Stocks

These are the car stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in early stages of development or industries suffering from major shocks, this ratio can be substituted for price-to-earnings (P/E) ratio, as a rough measure of a business’s value. A business with higher sales could eventually produce more profit when it achieves, or returns to, profitability. The price-to-sales ratio shows how much you’re paying for the stock for each dollar of sales generated.

Best Value Electric Car Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/S Ratio
Kandi Technologies Group Inc. (KNDI) 6.20 .3 2.7
NIO Inc. (NIO) 21.22 25.9 15.9
Tesla Inc. (TSLA) 429.01 400.5 16.1

Source: YCharts

  • Kandi Technologies Group Inc.: China-based Kandi is involved in the development, manufacturing and commercialization of electric vehicles (EVs), all-terrain vehicles (ATVs), battery packs, automobile motors, controllers for electric vehicles, and air-conditioning systems. Since 2013, the company has increased its focus on the development of pure EVs with a particular emphasis on expanding its market share in China. In September, the company announced the establishment of a wholly-owned subsidiary to be known as China Battery Exchange Technology Co. Ltd., which is focused on battery swapping and recycling.
  • NIO Inc.: NIO builds and sells electric vehicles and parts. Based in China, NIO also offers a range of battery services, including battery charging and battery swapping. In September, NIO delivered 4,708 vehicles, representing a new monthly record and a YOY increase of 133.2%.
  • Tesla Inc.: Tesla, the world’s largest automaker by market value, designs, builds, and sells electric vehicles and electric vehicle powertrain parts. Tesla sells vehicles directly to consumers and powertrain components to other automobile manufacturers. During Q3 2020, Tesla produced over 145,000 vehicles and delivered 140,000.

Fastest Growing Electric Car Stocks

These are the electric car stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales show that a company’s business is growing and can return larger profits to its shareholders when it achieves, or returns to, profitability.

Fastest Growing Electric Car Stocks
  Price ($) Market Cap ($B) EPS Growth (%)
Workhorse Group. Inc. (WKHS) 25.28 2.7 1,570
NIO Inc. (NIO) 21.22 25.9 137.2
Blink Charging Co. (BLNK) 10.31 .326 119.7

Source: YCharts

  • Workhorse Group Inc.: Workhorse Group designs and manufactures electric vehicles as well as for the aviation industry. The company also provides performance monitoring systems, delivery drones, and other products. In September, the company announced that its C-Series all-electric delivery trucks had achieved an improved range. The company cited new data showing that Workhorse’s 2020 model year C-1000 Extended Range achieved a maximum of approximately 160 miles per charge under urban situations, an industry-leading measure for this class of vehicle. 
  • NIO Inc.: See company description above.
  • Blink Charging Co.: Blink is a provider of electric vehicle (“EV”) charging equipment and networked EV charging services. The company’s EV-charging network is a proprietary cloud-based software system that operates, maintains, and tracks all the Blink EV charging stations and the associated charging data.

Electric Car Stocks With the Most Momentum

These are the car stocks that had the highest total return over the last 12 months. 

Electric Car Stocks With the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
NIO Inc. (NIO) 21.22 25.9 1,260
Tesla Inc. (TSLA) 429.01 400.5 790.5
Workhorse Group. Inc. (WKHS) 25.28 2.7 622.3
Russell 1000 NA NA 18.3
  • NIO Inc.: See company description above.
  • Tesla Inc.: See company description above.
  • Workhorse Group Inc.: See company description above.
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