Countries worldwide have started promoting electric vehicle adoption as a measure to lessen carbon emissions caused by the transportation sector. However, the transition from ICE to sustainable BEVs seems slower than desired.
According to Forbes Advisor, EVs only accounted for 5% of US overall auto sales as of the first half of 2022. It is still extremely far from the required 75% to 95% of all new car sales by 2030 for the country to achieve its net zero emission targets.
That said, If you are looking for a way to help boost the EV uptake, one of many ways you can do is to buy stocks. Forbes Advisor has made it easier by listing the top 10 EV stocks with high potential for growth.
As per the report, these stocks’ products are in high demand among the charging network firms. Furthermore, many of these stocks are currently trading at a 25% to 75% discount compared to their all-time highs.
Therefore, it is the best time to buy stocks from these companies and take advantage of the recent dramatic decline in the market.
| Best EV Stocks | Forward 12-Month Sales | TTM Sales | Altman Z-Score |
| Tesla Inc (TSLA) | +41% | $67 billion | 19.2 |
| NIO Inc. (NIO) | +75% | $5.7 billion | 3.1 |
| Li Auto Inc. (LI) | +83.5% | $4.9 billion | 6.6 |
| XPeng Inc. (XPEV) | +72.5% | $3.8 billion | 3.4 |
| ChargePoint Holdings (CHPT) | +56.5% | $282 million | 3.7 |
| Proterra Inc. (PTRA) | 76% | $247 million | 2.2 |
| Rivian Automotive, Inc. (RIVN) | +247% | $150 million | 5.8 |
| Lucid Group, Inc. (LCID) | 156.2% | $84 million | 4.4 |
| Wallbox N.V (WBX) | 103.5% | $81 million | 2.6 |
| Blink Charging Co. (BLNK) | 64.8% | $29 million | 29.7 |
*All analysis and data are sourced from Trades That Swing, current as of Sept 9, 2022.
How were the top 10 EV stocks ranked?
It must be noted that Forbes Advisor utilized sales growth and financial health to identify the top 10 electric vehicle stocks. The ranking requires the stocks to be registered on a North American stock exchange and qualify for the following criteria:
| Brackets | Requirements |
| TTM revenue: | To avoid highly speculative companies with little revenue, all companies on the list have at least $25 million in sales over the prior 12 months (TTM). |
| Revenue growth next year: | Each company is expected to grow revenue by at least 10% next year. All the stocks on the list have expected sales growth of 40% or more. |
| Annual revenue growth: | All the companies have increased sales in the current year by at least 10% year over year. There are two exceptions to this rule: RIVN and WBX, both of which have a very brief history of revenue data. |
| Financial health thresholds: | All the companies have an Altman Z-score above 1.8, with the lowest on the list being 2.2. For comparison, these scores correspond with a Morningstar financial health grade of B or C. The Altman Z-Score model is a measure used to predict the chances of a business going bankrupt in the next two years. |
This list can be considered reliable since it utilized the two most important factors that could indicate potential profitability: sales growth and financial health. That said, there is no wonder that investors kept buying stocks and products from these companies.
Nonetheless, EVs only need more push from the government, automakers, and investors to successfully make them a mainstream choice for buyers. Its prices must be affordable enough for different social classes while guaranteeing a competitive offering.
