The electric vehicle market is accelerating (pun intended).
According to S&P Global, by 2030 one in four new passenger cars sold worldwide will be an EV. In fact, top automakers are expected to account for more than 70% of global EV production by 2030. According to U.S. investment bank Goldman Sachs (NYSE:GS), half of all car sales globally by 2035 will be electric. Fortune Business Insights forecasts that the value of EV sales worldwide will reach $1.58 trillion by 2030.
Clearly, we are in the midst of a major transformation within the automotive industry, one that presents an enormous opportunity to investors. While not every automaker involved in electric vehicles is likely to be successful, some companies are leading the transition from gasoline-powered vehicles. Investors who choose wisely in the sector are sure to be rewarded with long-term gains in their portfolio. Here are three EV stocks to catapult you into the millionaires’ club.
Can anything stop the momentum in Tesla (NASDAQ:TSLA) stock? The leading EV maker has rebounded from a selloff last fall. That’s when CEO Elon Musk acquired Twitter and was devoting much of his time to the social media platform. With his attention now focused back on Tesla, the company’s share price has risen 150% year to date. Through five years, TSLA stock is up 1,165%, making it one of the best investments since 2018. And the news related to the company just keeps getting better.
Currently, TSLA stock is riding high on news that the company has struck a novel deal. Established automakers such as Ford (NYSE:F) and General Motors (NYSE:GM) will pay for access to Tesla’s network of fast charging stations across North America. On the heels of that headline, Tesla also recently reported exceptionally strong Q2 production and delivery numbers. Wall Street had forecast 445,925 deliveries for the quarter ended June 30. However, Tesla beat that estimate by more than 20,000 vehicles, delivering 466,140 EVs during Q2.
General Motors (GM)
After a difficult transition, General Motors transition to electric vehicles is starting to pay off. The biggest American automaker just reported Q2 sales of 691,978 new vehicles, up 18.8% from a year earlier. The Detroit-based manufacturer sold 36,300 EVs during the year’s first half, and has announced plans to produce 100,000 EVs in this year’s final six months. Several new EV launches in coming months could help GM reach that milestone, including electric versions of the Chevrolet Silverado and Equinox.
GM is also introducing an all-new electric delivery van this autumn, along with a Cadillac electric vehicle called the Celestiq. The price tag for the ultra-luxurious, handbuilt flagship sedan is $300,000. In total, General Motors is investing $35 billion into its electric vehicle transition between now and 2025 as it races to catch market leader Tesla.
GM stock had been sluggish since the pandemic struck in 2020, but appears to now be recovering. In the last 12 months, General Motors’ share price has gained 28%, including a 16% advance this year.
Toyota Motors (TM)
Shares of Japanese auto giant Toyota Motors (NYSE:TM) shot up 24% in June after the company announced a comprehensive EV strategy and plans to manufacture the batteries which power them. Toyota has set a goal of selling 1.5 million electric vehicles annually by 2026 and 3.5 million by 2030. The company’s new CEO Koji Sato, who took the reigns this past April, has made EV production the top priority.
Toyota also said that it is aiming for a driving range of 1,000 kilometers for all its future electric vehicles. Currently, the Tesla Model 3 sedan has among the longest driving ranges of any EV at 570 kilometers on a single battery charge. Toyota said it is in the process of developing a new method of mass producing solid-state batteries for electric vehicles. It aims to commercialize the technology by 2028. Investors applauded EV strategy and bid up TM stock. Year to date, the company’s share price is up 16%.
On the date of publication, Joel Baglole held a long position in GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.