launched its first IPO on the stock market. They issued 13.3 million shares, at a price of $17 each.
Early investors have been rewarded for their faith in electric vehicles (EVs), as Tesla shares are currently valued at $714.
The success of Tesla led to dozens of other EV stocks entering the fray, and as electric vehicles look to go mainstream, you might be curious about investment opportunities.
Sadly, there is no obvious "second coming" of Tesla in the stock market. In fact, many EV stocks are struggling.
Investor’s Business Daily points out the recent market sell-off, fueled by concerns over a resurgence of the pandemic, has left EV stocks "severely damaged."
In addition to this, all automakers have been hit by the semiconductor chip shortage. They have had to spend more money exploring new supply lines, and sold fewer units than planned due to manufacturing delays.
The good news is customer demand for electric cars is still increasing. When manufacturing is back to full capacity, most companies have a backlog of vehicles already sold.
Things look pretty good in the long term too. President Biden has just signed an executive order aimed at making half of all new vehicles sold in 2030 electric, and he has promised more EV infrastructure spending.
The top-rated electric car companies
While the market has been hard on EV stocks, Investor’s Business Daily believes there are still some worth looking at.
Their top five picks are Tesla, GM, Ford, VW, and Ferrari.
IBD explains that while most of these are not pure EV stocks, they are all heading in that direction.
It seems pretty certain that the electric revolution is upon us. The newer EV stocks will be hoping there’s still room at the table.