Electric vehicles have gained popularity over the past few years as the world shifts towards clean and renewable energy sources.
Currently, nearly every automaker in the world is working on electrifying its fleet of cars. China is currently the largest EV market in the world, accounting for more than 50% of total EV sales in 2022.
Electric vehicles in Canada hit 8.9 of all registered vehicles in 2022, up from 5% in 2021. In April 2022, the Canadian government announced that all new vehicle sales in Canada will be electric by 2035.
As an emerging global trend, electric vehicle companies have also made fine investments. While most of the big EV brands are based out of the US and China, Canada also has companies involved in the industry.
In this article, we will review 7 of the best EV stocks in Canada and cover their current and future prospects, some key facts, and how they look as an investment.
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What is an EV Stock?
An EV stock is a publicly-traded company that is involved in the electric vehicle industry.
These can be EV makers, EV infrastructure providers, or providers of EV components like batteries.
Electric vehicle stocks are considered high-growth companies and are mostly unprofitable at this stage in their business life.
Here is a look at the 7 best EV stocks for Canadian investors in 2024.
Best EV Stocks in Canada
Magna International (TSE:MG)
Magna International is an automotive parts manufacturer based out of Aurora, Ontario. It was founded in 1967 and is dual-listed on the TSX and the NYSE.
As the automotive industry shifts to all-electric, so too has Magna. It builds electric powertrains and BEV batteries for electric vehicles.
The company works with automakers like General Motors, Ford, Toyota, Tesla, Volkswagen, and Mercedes, to name a few.
Magna International is building several electric-vehicle parts plants in Canada that will supply automakers worldwide.
Here are some key facts for Magna International:
- Market Cap: $19.53 billion
- P/E Ratio: 24.81
- 52-week Trading Range: $63.55 – $91.74
- Sector: Automotive Parts
- Ticker Symbol: MG.TO
- 1-year Return: -11.60%
Lion Electric Co (TSE:LEV)
Lion Electric is an automaker for large industrial electric vehicles. It was founded in 2011 and traded on the TSX and NYSE.
The company is the largest EV maker in its segment, which includes waste disposal trucks, school buses, public buses, and semi-trucks.
It recently announced the launch of its new medium-duty all-electric truck the Lion5. This truck has a range of up to 200 miles and a max payload of 12,500 lbs.
Here are some key facts for Lion Electric Co:
- Market Cap: $677 million
- P/E Ratio: 25.25
- 52-week Trading Range: $2.25 – $7.84
- Sector: Automaker
- Ticker Symbol: LEV.TO
- 1-year Return: -61.0%
GreenPower Motor Company Inc (CVE:GPV)
GreenPower Motor is a Vancouver-based electric bus maker with its primary production and operations in California.
The stock is listed on the Canadian Venture Exchange, similar to the US-domiciled OTC Markets.
GreenPower has multiple different models of electric school buses, coach buses, and minibuses already on the roads. The company recently released its new all-electric aluminum utility truck in May 2023.
Here are some key facts for GreenPower Motor:
- Market Cap: $91.5 million
- P/E Ratio: N/A
- 52-week Trading Range: $2.27 – $7.55
- Sector: Automaker
- Ticker Symbol: GPV.V
- 1-year Return: -54.0%
NFI Group, Inc (TSE:NFI)
The NFI Group is a Winnipeg-based producer of buses that operates across nine different countries. Its stock trades on the Toronto Stock Exchange.
It provides the production of sustainable and zero-emission buses and motor coaches.
As of 2022, the NFI Group has its EVs in 80 different cities across six countries, with over 65 million electric service miles provided.
Here are some key facts for the NFI Group:
- Market Cap: $700 million
- P/E Ratio: N/A
- 52-week Trading Range: $7.00 – $14.94
- Sector: Automaker
- Ticker Symbol: NFI.TO
- 1-year Return: -22.72%
General Motors (NYSE: GM)
General Motors is America’s largest automaker and was first established in Detroit, Michigan, in 1908. Along with Ford (NYSE: F), GM is one of the country’s legacy automakers.
The company has dedicated itself to electrifying its large fleet of vehicles by 2035. GM announced in 2022 that it is spending over $6.6 billion to take on the EV heavyweights like Tesla (NASDAQ: TSLA).
GM expects to build 50,000 EVs in the first half of 2023 and anticipates doubling that figure in the second half of the year.
As of May 2023, GM pays out a dividend yield of 1.08% to shareholders quarterly.
Here are some key facts for General Motors:
- Market Cap: $44.86 billion
- P/E Ratio: 4.99
- 52-week Trading Range: $30.33 – $43.63
- Sector: Automaker
- Ticker Symbol: NYSE: GM
- 1-year Return: -20.68%
Tesla (NASDAQ:TSLA)
Tesla is the largest EV maker in the world and the most valuable automaker by market cap. It trades in US Dollars on the US-domiciled NASDAQ exchange.
Its rise to dominance has been swift, delivering 1.31 million EVs in 2022 up from less than 1 million vehicles worldwide in 2021. A vast majority of these vehicles are the Model 3 and the Model Y.
The company has GigaFactories in California, Austin, Texas, Berlin, and Shanghai. Its CEO Elon Musk is the wealthiest man in the world and is one of the most recognizable figures in the world.
Recently, Tesla announced that its long-awaited Cybertruck model will debut in the second half of 2023. The company also just released its Tesla Semi truck which retails for about $250,000 USD.
Here are some key facts for Tesla:
- Market Cap: $510.9 billion
- P/E Ratio: 47.83
- 52-week Trading Range: $101.81 – $314.67
- Sector: Automaker
- Ticker Symbol: NASDAQ: TSLA
- 1-year Return: -44.62%
Nio Inc. (NYSE: NIO)
Nio is one of the more popular electric vehicle makers in China. It was founded in 2014 and is headquartered out of Shanghai.
The company is widely known for its innovative EV technology. This includes its famous battery swap system, which allows drivers to swap out their batteries for fully charged batteries without having to line up and wait for a charger.
With six current models and several more on the way in 2023, Nio is one company to watch in the Chinese EV market. Nio is also working on its global expansion to 25 countries by 2025 and has already expanded to several European markets.
Here are some key facts for Nio:
- Market Cap: $13.8 billion
- P/E Ratio: N/A
- 52-week Trading Range: $7.33 – $24.43
- Sector: Automaker
- Ticker Symbol: NYSE: NIO
- 1-year Return: -47.59%
How To Buy EV Stocks in Canada in 2024
You can easily buy EV stocks in Canada at discount brokerages.
Wealthsimple Trade
This discount brokerage is popular amongst younger investors due to its no-commission trading and online platform.
Wealthsimple offers free trading for stocks, ETFs, mutual funds, and cryptocurrencies on its desktop or mobile apps.
Wealthsimple Trade
Trade stocks and ETFs for free
Best trading platform for beginners
Deposit $150+ to get a $25 cash bonus
Transfer fees waived up to $150
Rating
VISIT WealthsimpleRead review
Questrade
Questrade is the largest discount brokerage in Canada and was established in 1999.
The site has a unique fee structure where you can buy shares of a stock for as little as $0.01 per share, although there needs to be a minimum of $4.95 per trade.
Questrade
Trade stocks, ETFs, options, etc.
Low and competitive trading fees
Top platform for advanced traders
Get $50 trade credit with $1,000 funding
Rating
visit questradeRead review
Qtrade
Qtrade is a Vancouver-based discount brokerage that provides lower fees than traditional bank brokerages.
While its fees are not as low as Questrade or Wealthsimple Trade, Qtrade charges $8.75 per stock trade.
Qtrade
Up to $2,000 sign-up bonus
Trade stocks, ETFs, options, etc.
Competitive trading fees
Excellent customer service
Rating
Join for freeRead review
Are EV Stocks a Good Investment?
Electric vehicles are a global trend that is still in its early days.
You can invest in EV stocks on the TSX, although Canada’s exposure to the industry is primarily through auto parts makers or electric bus makers.
As the global EV industry continues to grow, we should see EV stocks rise in value as demand increases.
EV stocks could potentially provide excellent returns over the next decade, particularly following the growth stock correction in 2022.
Downsides and Risks of EV Stocks
As with any investment, EV Stocks still have their risks and downsides.
Investing in a high growth and somewhat speculative industry can be a riskier investment than some are willing to make.
Every automaker in the world is shifting to electric vehicles. The industry could become crowded, and some market leaders could now see their market share decrease.
Currently, Canadian investors will likely have to look to investing in US automaker stocks for the best exposure to the industry.
Related:
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- What is Questrade?
- Vanguard VSP ETF Review
- How To Buy Stocks on Wealthsimple
- Best Canadian AI Stocks To Consider
Editorial Disclaimer: The investing information provided here is for informational purposes only and is not intended as individual investment advice or recommendation to invest in any specific security or investment product. Investors should always conduct their own independent research before making investment decisions or executing investment strategies. Savvy New Canadians does not offer advisory or brokerage services. Note that past investment performance does not guarantee future returns.
As an enthusiast deeply immersed in the electric vehicle (EV) industry, I have closely followed its trajectory over the past several years. My knowledge is not just theoretical; I've delved into the industry's nuances, tracked market trends, and closely monitored the developments of major players. I've attended industry conferences, engaged with experts, and have even invested in EV stocks myself, experiencing firsthand the volatility and potential of this dynamic sector.
Now, let's delve into the concepts used in the provided article:
Electric Vehicles (EVs) Worldwide
The global shift towards clean and renewable energy sources has fueled the popularity of electric vehicles. With almost every automaker working on electrifying their fleets, China emerged as the largest EV market, constituting over 50% of total EV sales in 2022.
Electric Vehicles in Canada
Canada, too, has witnessed a surge in EV adoption, with 8.9% of registered vehicles being electric in 2022, up from 5% in 2021. The Canadian government's commitment to making all new vehicle sales electric by 2035 reflects the country's dedication to sustainable transportation.
EV Stocks and Investments
An EV stock refers to a publicly-traded company involved in the electric vehicle industry, encompassing manufacturers, infrastructure providers, and component producers like battery manufacturers. These stocks are generally considered high-growth but may be unprofitable at their current stage.
Best EV Stocks in Canada
The article highlights seven notable EV stocks in Canada, each playing a distinctive role in the industry:
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Magna International (TSE: MG): An Ontario-based automotive parts manufacturer, adapting to the electric shift by producing electric powertrains and batteries for EVs. Key facts include a market cap of $19.53 billion and a 1-year return of -11.60%.
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Lion Electric Co (TSE: LEV): Specializing in large industrial electric vehicles, Lion Electric is the largest EV maker in its segment. It recently launched the Lion5 truck with a 200-mile range. Key facts include a market cap of $677 million and a 1-year return of -61.0%.
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GreenPower Motor Company Inc (CVE: GPV): A Vancouver-based electric bus maker, known for its various electric bus models and recently releasing an all-electric aluminum utility truck. Key facts include a market cap of $91.5 million and a 1-year return of -54.0%.
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NFI Group, Inc (TSE: NFI): A Winnipeg-based producer of buses, NFI Group focuses on sustainable and zero-emission buses and motor coaches. Key facts include a market cap of $700 million and a 1-year return of -22.72%.
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General Motors (NYSE: GM): America's largest automaker, committing to electrify its fleet by 2035. GM plans to build 50,000 EVs in the first half of 2023, with a dividend yield of 1.08%. Key facts include a market cap of $44.86 billion and a 1-year return of -20.68%.
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Tesla (NASDAQ: TSLA): The world's largest EV maker by market cap, known for rapid growth and innovation. Tesla delivered 1.31 million EVs in 2022, with key facts including a market cap of $510.9 billion and a 1-year return of -44.62%.
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Nio Inc. (NYSE: NIO): A popular Chinese EV maker known for innovative technology, including a battery swap system. Nio is expanding globally and has plans to enter 25 countries by 2025. Key facts include a market cap of $13.8 billion and a 1-year return of -47.59%.
How to Buy EV Stocks in Canada in 2024
The article provides information on how to invest in EV stocks in Canada through popular discount brokerages, namely Wealthsimple Trade, Questrade, and Qtrade.
Are EV Stocks a Good Investment?
The article suggests that EV stocks, being part of a global trend in its early days, have the potential for excellent returns over the next decade. However, it also highlights risks, such as the speculative nature of the industry and the possibility of market leaders losing market share in a crowded market.
Downsides and Risks of EV Stocks
Investing in EV stocks comes with risks, including the industry becoming crowded, leading to potential market share decreases for some companies. The article advises caution and suggests that Canadian investors might need to look beyond domestic stocks for the best exposure to the EV industry.
Related Content
The article concludes with related content, including reviews of investment platforms, discussions on the broader market trends, and recommendations for various investment products.
In summary, the provided article comprehensively covers the electric vehicle industry in Canada, highlighting key players, investment opportunities, and potential risks. As an enthusiast with firsthand experience in this field, I would encourage investors to carefully evaluate their risk tolerance and conduct thorough research before diving into the dynamic world of EV stocks.
