With climate change posing an ever-increasing threat, the global automotive industry is actively seeking ways to combat carbon emissions. One of the most prominent solutions on the horizon is the widespread adoption of electric vehicles (EVs).
As automakers increasingly embrace this eco-friendly shift, and electric car demand continuing to grow, investors are on the lookout for stocks that hold the greatest potential to capitalize on the shift to electric energy.
Rivian (NASDAQ: RIVN)
Considered one of the most promising EV companies in the world, Rivian experienced a rapid change of circumstances since its initial public offering (IPO) in November 2021 due to both challenging market circumstances and execution issues.
However, the US carmaker won back a portion of investor trust last month when it reiterated its annual production outlook of 50,000 cars and beat Wall Street expectations for quarterly revenue.
Analysts at CFRA Research slightly raised RIVN’s price target following the positive quarterly report, saying the company “maintains a more favorable liquidity position than EV peers given its cash position of $11.8B at quarter-end.”
At press time, shares of Rivian stood at $14.73, down 0.9% on the day. Over the past month, the stock gained 15%, although its year-to-date losses remain high at 22%.
Lucid Motors (NASDAQ: LCID)
In the wake of poor delivery numbers last year due to supply chain and production constraints, Newark, California-based luxury EV maker Lucid staged a notable recovery in the stock market this year, gaining 30% in the first quarter of the year.
Still, a lot of investors were steering clear of LCID in recent months, as the company, like its peers, continues to grapple with rising losses and restricted cash reserves. However, on June 1, the company announced plans to raise around $3 billion through a new stock offering, to tackle these challenges.
Over the past week, the stock rose 4% and more than 11.3% since January 1, 2023.
Meanwhile, its stock price experienced a steep drop in the past 24 hours, plunging by more than 15%. While such market fluctuations can be unsettling, they also offer an intriguing opportunity for investors to potentially acquire Lucid stock at a discounted price.
Tesla (NASDAQ: TSLA)
Unsurprisingly, Tesla, the world’s biggest carmaker by market cap, is on the list of Finbold’s top EV stocks to keep an eye on in June.
The stock surged 17.6% in May and has risen 80% from its low point in January this year. In addition, TSLA exceeded the 50-day moving average on May 19.
Moreover, Tesla was one of the stocks that Cathie Wood believes could significantly benefit from the ongoing artificial intelligence (AI) boom, referring to the company’s efforts to develop autonomous driving technology.
At the time of writing, TSLA was changing hands at $203.93, up 1.38% on the day. Over the past week and month, the stock gained 11.9% and 25%, respectively.
The EV sector continues to expand, fueled by both established players and ambitious startups competing for a piece of the market. As we enter June, investors are closely eyeing several EV stocks that show immense potential, and the three mentioned analyzed above are certainly worth keeping an eye on.
The exponential growth of the EV market presents lucrative opportunities across the entire sector, extending beyond the electric vehicle manufacturers themselves.
Investors would be wise to not only closely track electric vehicle stocks but also direct their attention towards battery and lithium stocks that play a pivotal role in powering these vehicles to fully capitalize on the evolving landscape of the electrification revolution.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.