Electric vehicle power system technology stock

Are electric vehicle stocks making a comeback?

But electric vehicle (EV) stocks – some of the biggest winners during the 2020-2021 tech boom – are also making a comeback. Or at least some of them are! "The early stage of the EV boom was a bit of a free for all," explains Sonia Joao, chief operating officer of Houston-based RIA Robertson Wealth Management.

Will EV battery technology revolutionize the EV industry?

Major battery producers are investing heavily to meet rising EV battery demand. Meanwhile, battery technology start-ups (some of which are going public via special purpose acquisition company [SPAC] mergers) are developing new energy storage systems that could revolutionize the industry.

What are electric car stocks?

Electric car stocks comprise companies primarily focused on manufacturing electric cars. Companies that manufacture the components used in electric cars -- such as batteries or autonomous vehicle systems -- can also be considered part of the electric car industry. Image source: Getty Images.

Should you invest in EV stocks?

Allocating a portion of your portfolio to EV stocks can both aid the transition to zero-emissions vehicles and potentially boost your portfolio’s returns. However, as a breakthrough technology, many—but not all—of the leading EV companies are growth stocks. Some of them are years away from profitability, carrying big risks for investors.

Is ON Semiconductor a good EV stock?

As with the prior lithium stock, ON Semiconductor is a company that isn't tied to an individual EV company and therefore is a broader play on the trend of electric vehicle adoption versus a particular make or model. With a great specialty and operations that are comfortably profitable, it may be a less sexy but certainly safer bet for EV investors.

Should you buy EV battery stocks?

Investors don't have to pick a winning automaker -- they can buy shares of battery stocks instead. The range of options in EV battery stocks goes from pre-revenue to one of the world's biggest automakers. The automotive industry is going electric. Every major automaker is actively developing or already selling electric vehicles (EVs).