15 Best-Performing EV Stocks for August 2024 – NerdWallet

According to the International Energy Agency, about 1.6 million electric vehicles (EVs) were sold in the U.S. in 2023 — a significant increase from the 1 million sold the previous year^[0]

Increased sales and enticing EV tax credits may make investing in EV stocks more attractive than ever.

EV stocks include electric vehicle manufacturers, electric battery producers and companies that make charging stations and electric motors. In a broader sense, electric vehicle stocks may also include mining companies and semiconductor companies that produce key EV components.

If you’re looking for EV stocks, there are several to choose from. However, keep in mind that investing in individual stocks is typically riskier than investing in a well-diversified index fund or exchange-traded fund. And while stock pickers will often look for a strong track record of performance, many EV stocks don’t have one, making the EV market speculative.

The table below shows the 15 best-performing members of the Solactive Electric Vehicles and Future Mobility Index that are also traded on major U.S. exchanges. The stocks are ranked by one-year return.

Source: Finviz. Data is current as of Aug. 23, 2024, and is intended for informational purposes only, not for trading purposes.

If you’d rather not pick individual electric vehicle stocks to include in your portfolio, EV exchange-traded funds (ETFs) could be helpful. These ETFs hold a basket of stocks related to electric vehicles, including EV technology such as charging stations and vehicle batteries. One of these funds is the Global X Autonomous & Electric Vehicles ETF (DRIV). DRIV seeks to mirror the performance of the Solactive Autonomous & Electric Vehicles Index, which lists companies in the electric vehicle space.

Electric vehicles aren’t only being produced by new car companies. Legacy car manufacturers such as General Motors, Ford, Toyota and Ferrari all offer at least a hybrid electric vehicle, and most offer a fully electric model. Some of these companies are even included in electric vehicle-themed ETFs.

One drawback of ETF investing is that you don’t get complete control over what you invest in. For instance, while funds such as DRIV do invest in EVs and EV technology, some of DRIV’s top holdings — NVIDIA Corp. (NVDA), Toyota Motor Corp. (TOYOF), Microsoft (MSFT) and Alphabet Inc. (GOOGL) — may come as a surprise.

If you’re looking to add EV stocks to your portfolio, you’ll need a brokerage account to purchase them. Setting up an account is relatively easy and takes about 15 minutes. Once you fund an account, you can research EV stocks and invest directly from your brokerage account.

If you’re looking for more environmentally friendly investment options, you can also explore green stocks.