NIO Stock: 5 Electric Vehicle Names to Buy in November

Investors in top electric vehicle stocks such as Tesla (NASDAQ:TSLA) have a few options when it comes to growth potential.

| More on:

Anybody watching the North American stock markets lately will have noticed two big electric vehicle takeaways of late. The pullback in EV media darling Tesla (NASDAQ:TSLA) has mirrored the correction in tech stocks. This should not have been the surprise that some analysts have hailed it as. Indeed, EV stocks and tech stocks have seen similar momentum in the past 12 months on the markets.

A tight race between EV stocks

But neither should the sudden rocketing of an apparent outsider like NIO (NYSE:NIO) have surprised observers. The Chinese auto maker already shocked investors once this quarter with its sudden upside. However, NIO also soared 6% Tuesday. The move was notable, as it came at a time when many other stocks on the North American markets were dipping into the red. Wednesday saw the party continue, with 8.9% gains.

This makes the Asian automaker a key stock to watch for an EV boom. But there are yet other pretenders to the Tesla throne. Canadian investors are no doubt already familiar with Magna International (TSX:MG)(NYSE:MGA). In fact, investors interested in NIO stock and looking to Asia for upside in the electric vehicle space have a key play in Magna. It’s also a dividend payer, with a 3% yield.

That’s some fairly juicy passive income, especially for a manufacturing stock. However, this is a well-appointed name with a fortified economic moat. That dividend also complements the possibilities for some steep capital gains. Trading at $68 a share, Magna could blaze past the $100 mark given the right circumstances. Even a moderate price target of $78 predicts upside potential in this solid auto stock.

More than one route to wealth creation

The metals that power the batteries used in these breakthrough vehicles also offer their own upside potential. Mining stocks such as Lithium Americas have enjoyed steep gains in 2020 as the green vehicle thesis continues to grow wealth in shareholders’ portfolios. Having soared +200% in the last 12 months, Lithium Americas is now correcting. Having pulled back 33% in the past month, investors currently have a value opportunity.

Investors in electric vehicle makers such as Tesla have a few options when it comes to growth potential in the manufacturing space. For instance, General Motors made waves when it announced an upcoming electric model of its famous Hummer.

The GMC Hummer EV has already generated a great deal of buzz. Indeed, its eventual production (expected 2022) could further depress Tesla’s share price as this competitive field becomes ever more crowded.

The clocks weren’t the only thing falling back as we headed into November. With Tesla decelerating, the path to glory has opened up for other road users. Furthermore, Tesla has a 36-month beta of 1.95, almost double the volatility of the market. Investors should look past such frothy names and keep an eye on other market leaders, such as the growth-focused Magna International.

This week will be decisive for EV stocks, though. With the U.S. election now in electoral vote counting mode, investors will soon know whether green growth is about to get the green light at the White House.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool recommends Magna Int’l.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge and TC Energy rebounded nicely over the past year. Are more gains on the way?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

2 Utility Stocks That Are Smart Buys for Canadians in November

Are you looking for some of the smart buys to consider in November? These utility stocks offer growth and a…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is Power Corporation of Canada Stock a Buy for its 5% Dividend Yield?

Is Power Corporation of Canada (TSX:POW) stock's 5% dividend yield worth it? Discover why this resilient stock could be a…

Read more »

hand stacks coins
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These three dividend stocks are ideal for strengthening your portfolio and earning a stable passive income.

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »