EV Publicly Traded Companies

Not only is the electric car an exciting, money-saving, and environmentally-sound choice for your next new vehicle, but investing in EV technology may also provide a boost to your stock portfolio. The electric automotive stock market is slowly developing into a niche investment sector for the experienced and the novice trader alike.

While some experts claim that investing in this growing technology is a sound choice that could be the “next dot-com bubble,” other expert investors advise caution. We agree with both and emphasize that you’ll need to do your homework.

There are numerous publicly traded companies that are involved in the alternative transportation sector of the stock market around the world. This sector includes efficient electric cars, electric vehicle batteries, smart grids and infrastructure, solar power, and several other investment categories, which, together, offer up numerous options in this emerging and electrifying market.

All the numerous options aside, however, there are only a handful of companies that both trade publicly and actually manufacture electric vehicles. This is unfortunate for both consumers wanting an electric car and investors shedding tears to find solid EV companies that actually build their own cars.

When purchasing any alternative transportation stock in any company on any exchange, your primary concern should be earnings. Just as in when buying real estate your primary concern should always be location, when buying securities in any company, your first concern should be earnings, after which comes earnings, and, finally, earnings. The logic behind this reasoning is that companies with earnings have little or no difficulty getting funds from both the public and private sectors. This rule of thumb pertains not only to penny stocks but also to the more secure securities such as utility companies or blue chip securities listed on the NYSE, the NASDAQ, or the OTCBB.

Unfortunately, however, finding good earnings performance within the alternative transportation sector on any exchange is easier said than done. Most OTCBB alternative transportation public companies have no earnings. Many others, even those traded on major exchanges, have only limited earnings. Before investing in any alternative transportation-related stock, you should thoroughly investigate the company and its earnings. Research what the EV company is planning for its short-term and long-term future.

With this in mind, the essential question that begs being asked by investors is if it is even judicious at all to invest in the budding electric vehicles alternative sector – a sector where any monetary achievement is far from assured.

One sector of the EV market that is currently growing furiously is that of the organization of electric charging stations. The charging station market is a sector that appears to be getting stronger and is showing solid signs of growth. The companies within this sector are plugging into public money and should definitely be investigated with investment potential in mind.

The alternative fuel sector is another one that appears to be heating up, although, reportedly, the supply of lithium-ion batteries will continue to exceed the demand for the next few years. Investors interested in lithium-ion battery companies may want to stay clear of companies that rely solely on this technology for their earnings.

Novice investors can get their feet wet by staying faithful to those stocks with which many people are familiar. Well-known corporations whose main commerce isn’t completely reliant on the EV sector are great options. These include major EV manufacturers such as Tesla Motors as well as other leaders like General Motors and Nissan. Even Ford, BMW, and Mercedes have begun to get into the race, and be sure to keep an eye on Kandi Technologies and BYD Company Ltd. Other recognizable public companies with alternative transportation affiliation include BorgWarner, Johnson Controls, GE Energy, Enterprise Holdings, and Rockwell Automation. Any one of these could potentially be a prudent investment.

Investors looking to get a little wetter than just their feet may want to consider companies that are connected to the EV sector but offer unconnected products as well. Some of the stronger ones are AeroVironment, ECOtality, NRG Energy, Coulomb Technologies, and Car Charging Group Inc.

Of course, if you want to dive into the deep end of the pool there are plenty of EV businesses that are perfect for that. Although these carry more risk on your investment, if you should happen to get lucky you may well see huge profits. OTC and NASDAQ companies like Alternative Fuel Technologies, Azure Dynamics Corp, Zenn Motor Company, CIGSolar, Valence Technology, EVCARCO, Electric Car Company Inc, and Force Fuels Inc are some companies that fall into this category, and there are many copious others. We suggest using only discretionary income when purchasing OTCBB penny stock.

Although electric vehicles are definitely the automotive technology of the future, not all companies working on electric vehicles, chargers, or the necessary infrastructure are going to make it. Some will, however, and those that do could make it big.

In the end, early investors will simply have to roll the dice and take of a leap of faith. Although there is definitely the potential of a rich reward for investors, most alternative transportation stocks are nothing more than a speculative investment. Caveat emptor.