5 best electric vehicle stocks to buy in September 2021


Electric vehicle (electric vehicle) stocks saw a boost in 2021. While they continued their strong run in the first quarter and most of them hit record highs, there was a sell off. afterwards. In the past two months, EV stocks have recovered some of their losses and some have even turned positive for the year.

The pivot to electric cars is one of the biggest transformations we’ll see over the next two decades. Here are the five best EV stocks you can buy in September 2021.

  1. Lucid Motors (NYSE: LCID)

Lucid Motors went public earlier this year through a reverse merger with Churchill Capital IV (CCIV). It was perhaps the most publicized SPAC (Special Purpose Acquisition Company) merger of 2021. However, the stock looked weak and is trading at a steep discount from its pre-market highs. fusion.

With Lucid Motors set to begin deliveries of its Air sedan soon, it is among the best stocks of electric vehicles to buy in September. Earlier this week, Citi became the first brokerage to hedge shares of Lucid Motors. “Right now, Lucid is among the few who can challenge Tesla’s premium brand position as a leader in electric and tech vehicles,” Citi’s Itay Michaeli said in the note. He launched the Start-up EV stock with a buy rating and a target price of $ 28 while calling the stock “high risk”.

Lucid vs. Tesla

Many see Lucid Motors as a formidable competitor to Tesla. Incidentally, it is headed by British engineer Peter Rawlinson who had previously worked with Tesla. Meanwhile, Citi doesn’t think Lucid Motors is the next Tesla. He said: “At the end of the day, we don’t see Lucid as ‘the next Tesla’ but rather an EV platform that looks a lot like what we love about Tesla, but without some of the risks associated with assumptions. high shares of 2030 & [autonomous vehicle]/[full self-driving] expectations. “

Overall, LCID ranks among the best electric vehicle stocks to buy in September and is betting on the theme of vehicle electrification.

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  1. NIO (NYSE: NIO)

With a fall of more than 27% year-to-date, NIO is underperforming Tesla as well as Chinese EV stocks this year. Along with the stock liquidation of electric vehicles, China’s technological crackdown has also not helped NIO. Although the country has not targeted the electric vehicle industry, and probably would not given its strategic importance, investors have been reluctant to invest in Chinese stocks amid the crackdown.

Recently, the company announced a $ 2 billion share sale which led to another share sale. NIO has the tacit support of the Chinese government and the country has a special subsidiary category for battery exchange where only NIO is eligible. The country also bailed out the company as it struggled with a capital raise last year. In the long term, launching new models and entering new markets will generate value for investors.

NIO has already announced an expansion in Europe starting with Norway and suggested targeting Germany next. Tesla is also setting up a Gigafactory in Berlin to meet the growing demand for its electric cars.

Analysts are bullish on NIO stock

Wall Street analysts are pretty bullish on NIO stock. Of the 20 analysts covering the stock, 17 rate them as a buy while two analysts have a holding rating. Only one analyst has rated NIO as a sale or equivalent. Its median target price of $ 61.20 is a 58% premium over current prices.

NIO has a strong product proposition and valuations now look much more reasonable after the crash. There are short-term issues for the company, and it has had to relax the third-quarter delivery forecast amid the chip supply situation. However, it is still among the best VE stocks to buy and hold for the long term.

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  1. Fisker (NYSE: FSR)

Fisker is an electric vehicle start-up and, like Lucid Motors, went public through a SPAC merger. The company plans to start production of its first vehicle, the Ocean SUV in Europe next year. He partnered with Magna to produce the vehicle.

For its second vehicle named Project Pear, Fisker partnered with Foxconn to produce the vehicle. The company has competitively priced its vehicles and may be fighting an uphill battle with other electric vehicle manufacturers.

fisker ev shares to buy

Analysts are bullish on FSR stock

While analysts have been bearish on several stocks of EV startups, most of them are bullish on Fisker. its median target price of $ 24 implies a 74% hike over the next 12 months. Its highest target price of $ 40 is a 190% premium over current prices. Of the nine analysts covering Fisker, five rate them as a buy while three rate them as an expectation. An analyst rated Fisker as a sale.

This year, several brokerages took a bullish view of Fisker, and in April, Bank of America kicked off the electric vehicle startup as a buy. “Besides the experience of President, Co-Founder and CEO Henrik Fisker, FSR’s main competitive advantages are an interesting / attractive product and its platform sharing and contract manufacturing with Magna and Foxconn,” he said. it stated in the note.

Overall, given the partnerships Fisker has formed and the price tag of its cars, it is among the best stocks of EVs to buy, especially in the startup space.

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  1. General Motors (NYSE: GM)

When we think of electric vehicle stocks, we generally tend to overlook traditional car manufacturers. General Motors became the first automaker in Detroit to commit to a zero-emission future. GM has said it will not sell ICE (internal combustion engine) cars beyond 2035.

Wall Street analysts are bullish on the GM stock and its average target price of $ 73.86, a potential up 52.5% from current prices. Of the 14 analysts polled by TipRanks, 13 rate GM stock as a buy while one analyst has a holding rating. The stock fell last month after its second quarter results disappointed markets. However, most analysts saw the post-earnings decline as a buying opportunity.

GM stock fell after profits

“While the 2T results and the 2021 guide are weak, we believe the 2T was impacted by one-time warranty fees that will reverse and management has set an easy bar for 2H assuming lower volume sequentially due a shortage of chips, “said Emmanuel, analyst at Deutsche Bank. Rosner. It added the stock to the Catalyst short-term call buying list and maintained a target price of $ 68.

All in all, while traditional automakers like GM have seen their valuations revalorize, there is still room for expansion in their multiples. As GM increases its sales of electric vehicles, it could see a further rise. While this is not a stock of electric vehicles in the strict sense, it is nevertheless a game on the industry given the massive investments it has described in electric vehicles.

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  1. REE Automotive (NYSE: REE)

REE Automotive also went public through a SPAC merger and is currently trading at a 40% discount from the IPO price of SPAC. Stock, however, appears to be a good niche game in the electric vehicle industry. The three analysts covering REE have a buy rating on the stock, and its median target price of $ 15 is a premium of almost 150%.

ree best stock ev to buy

REE Automotive’s long-term forecast

REE Automotive projects revenue of $ 5.7 billion in 2025 and expects its EBITDA to reach $ 904 million that year. To put that in perspective, its market cap is around $ 1.9 billion, which gives us a 2025 price / sales multiple of just 0.33x.

The stock is currently not liked by the markets, but looks like a good VE stock to buy and hold for the long term.

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Mohit Oberoi is a freelance financial writer based in India. He completed his MBA with a specialization in finance and also holds a CFA charter. He has over 14 years of experience in the financial markets. He has written extensively on world markets over the past seven years and has written over 7,500 articles. It covers metals, electric vehicles, asset managers, technology stocks and other macroeconomic news. He also enjoys writing on personal finance and valuation related topics.


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