EV stocks in Canada represent a growing sector in the automotive industry, focusing on electric vehicles. These stocks offer investors a chance to capitalize on the transition from fossil fuels to sustainable energy. With Canada aiming for all-electric cars by 2035, the future for Canadian EV stocks looks promising.
Read this article because it equips you with the knowledge to navigate the Canadian EV stock landscape, backed by years of trading experience.
I’ll tackle the following questions …
- What Are Canadian EV Stocks?
- What Are the Top Canadian Electric Vehicle Stocks for 2023?
- Why Should You Invest in Electric Vehicle Stocks in Canada?
- Are Electric Vehicle Stocks Risky?
- What Are the Different Types of Electric Vehicles Available in the Market?
- Are There Any Electric Vehicle Stocks Based Outside of Canada That Are Relevant for Canadian Investors?
Let’s get to the picks!
Table of Contents
- 1 What Are Canadian EV Stocks?
- 2 Top Canadian Electric Vehicle Stocks for 2023
- 3 Why You Should Invest in Electric Vehicle Stocks in Canada
- 4 How To Invest in EV Stocks in Canada
- 5 Risks and Downsides of Investing in EV Stocks
- 6 Key Takeaways
- 7 Canadian EV Stock FAQs
- 7.1 Are There Any Electric Vehicle Stocks Based Outside of Canada That Are Relevant for Canadian Investors?
- 7.2 How Are EV Stocks Taxed in Canada?
- 7.3 What Are the Different Types of Electric Vehicles Available in the Market?
- 7.4 What Are the Profitability Metrics for Canadian EV Stocks?
- 7.5 How Do Canadian EV Stocks Compare Globally?
- 7.6 Where Can I Find Reliable News on Canadian EV Stocks?
- 7.7 What Technologies Are Being Pioneered by Canadian EV Stocks?
- 7.8 What Is the Access and Reach of Canadian EVs?
- 7.9 How Do You Make Money by Investing in EV Stocks?
- 7.10 What Role Do Governments Play in the Canadian EV Market?
- 7.11 How To Stay Updated with the Latest Developments?
- 7.12 What’s the Range of Canadian EV Models?
- 7.13 Are There Any Trial Programs for Canadian EVs?
What Are Canadian EV Stocks?
Canadian EV stocks are shares of companies based in Canada that are involved in the electric vehicle industry. This includes manufacturers of EVs, producers of batteries, and companies offering EV-related services. In my years of trading and teaching, I’ve seen sectors rise and fall, but the EV space in Canada has consistently shown promise.
Top Canadian Electric Vehicle Stocks for 2023
My top Canadian EV stock picks are:
- TSX: LEV — The Lion Electric Company
- TSX: MG — Magna International
- TSX: NFI — NFI Group Inc.
- TSE: PKI — Parkland Company
- TSXV: GPV — GreenPower Motor Company
- OTCPK: VLKAF — Volkswagen AG
Investing in the right stocks is crucial for portfolio growth. Here are some top Canadian EV stocks to consider for 2023, based on market cap, demand, and revenue growth.
The Lion Electric Company (TSX: LEV)
My first Canadian EV stock pick is The Lion Electric Company (TSX: LEV).
The Lion Electric Company is a leader in the electric school bus market. With government support for greener solutions, this stock has significant growth potential. Their operations extend beyond school buses to include trucks and fleets.
Magna International (TSX: MG)
My second Canadian EV stock pick is Magna International (TSX: MG).
Magna International is not a pure EV play but has a significant role in the EV sector. They produce essential parts and have partnerships with several automakers. Their diversified approach minimizes risks, making them a solid pick.
NFI Group Inc. (TSX: NFI)
My third Canadian EV stock pick is NFI Group Inc. (TSX: NFI).
NFI Group focuses on buses and is gradually shifting towards electric models. With cities becoming more conscious of reducing emissions, NFI Group is well-positioned to capitalize on this trend.
Parkland Company (TSE: PKI)
My fourth Canadian EV stock pick is Parkland Company (TSE: PKI).
Parkland is involved in the fuel sector but is making moves into electric charging stations. As the demand for EVs rises, so will the need for charging solutions, making Parkland a company to watch.
GreenPower Motor Company (TSXV: GPV)
My fifth Canadian EV stock pick is GreenPower Motor Company (TSXV: GPV).
GreenPower Motor is a smaller player but has a focus on electric buses and fleets. They have seen an increase in orders, and their customer service has received positive reviews.
Volkswagen AG (OTCPK: VLKAF)
My sixth Canadian EV stock pick is Volkswagen AG (OTCPK: VLKAF).
Volkswagen, a German automaker, is making significant strides in Canada’s EV market. The company recently announced plans to build its first North American EV battery manufacturing plant in St. Thomas, Ontario.
The investment is part of Volkswagen’s broader strategy to spend nearly $200 billion over the next five years to reduce its EV production costs and grow its market share. The Canadian EV investment is likely the largest single investment in Canada’s auto sector history, and there are strong signs of more to come.
Why You Should Invest in Electric Vehicle Stocks in Canada
Electric vehicles are the future of the automotive industry. Canada’s aim for all-electric cars by 2035 makes investing in this sector a strategic move.
When considering which EV stocks to invest in, don’t overlook the stock’s float. Low float stocks can be more volatile, offering both higher risks and potentially higher rewards. This characteristic can make certain EV stocks more attractive to day traders and those looking for quick gains. For a deeper understanding of how low float impacts stock volatility, check out this informative article.
The Future of the Automotive Industry
The automotive industry is undergoing a significant shift towards electric vehicles. Companies like Tesla (NASDAQ: TSLA) and Ford (NYSE: F) are leading the way, but Canadian companies are not far behind.
Canada’s Aim for All-Electric Cars by 2035
The Canadian government has set an ambitious goal to have all new cars be electric by 2035. This policy will undoubtedly boost the Canadian EV sector, offering investors a golden opportunity for high returns.
How To Invest in EV Stocks in Canada
Investing in EV stocks is similar to investing in any other sector. You’ll need a brokerage account, and it’s crucial to diversify your investments to manage risks effectively.
Investing in EV stocks isn’t just about buying shares. You can also use options to diversify your investment strategy. One popular options strategy is the credit spread, which allows you to potentially profit from minimal price movement in the stock. If you’re interested in diversifying your EV stock investments through options, here’s a comprehensive guide on credit spreads.
Risks and Downsides of Investing in EV Stocks
While the future looks bright, investing in EV stocks comes with its own set of risks, including market volatility and competition.
While market volatility is a given in the EV sector, smart investors use various market indicators to gauge risk. One such indicator is the bearish engulfing candle, a pattern that can signal a potential downturn in a stock’s price. This can be particularly useful for assessing the risk level of an EV stock before making an investment. For a deep dive into how a bearish engulfing candle can help you assess risks, check out this detailed guide.
Are Electric Vehicle Stocks Risky?
All investments come with risks, and EV stocks are no exception. Market trends can be volatile, and there’s always the risk of lower-than-expected demand for electric vehicles.
Volatility and Market Risks
The EV market is still relatively new and can be subject to volatility. Market risks like economic downturns can also impact the industry, so it’s essential to have a well-thought-out investment strategy.
Investing in Canadian EV stocks offers a promising opportunity for high returns, especially with the government’s push for electric vehicles. However, like any investment, it’s crucial to do your research and understand the risks involved.
Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…
I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.
We don’t accept everyone. If you’re up for the challenge — I want to hear from you.
Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.
What Canadian EV stocks are on your watchlist? Let me know in the comments — I love hearing from my readers!
Canadian EV Stock FAQs
Are There Any Electric Vehicle Stocks Based Outside of Canada That Are Relevant for Canadian Investors?
Yes, stocks in Tesla, Ford, Volkswagen, GM, Honda, Toyota, Nissan, Mazda, Subaru, Kia, Hyundai, BMW, Audi, Mercedes-Benz, Volvo, Jaguar, Land Rover, Porsche, Lamborghini, Ferrari, Maserati, Bentley, Rolls-Royce, and every other big company in the European, Japanese and United States markets should interest Canadian investors. These companies have a global reach and are more likely to generate big EV sales than startups.
How Are EV Stocks Taxed in Canada?
In Canada, profits from selling stocks are considered capital gains and are subject to taxation. It’s essential to consult with a tax professional for specific advice.
What Are the Different Types of Electric Vehicles Available in the Market?
The market offers various types of electric vehicles, including hybrids, plug-in hybrids, and fully electric cars. Each has its own set of advantages and disadvantages, affecting their stock value differently.
What Are the Profitability Metrics for Canadian EV Stocks?
Profitability in the Canadian EV sector is often measured through Earnings and Dividend yields. Analysts regularly publish information on these metrics. To diversify risk, investors often opt for ETFs focused on renewable energy and EVs.
How Do Canadian EV Stocks Compare Globally?
When comparing countries, Canadian EV companies often collaborate with those in California and other country partners. Toronto and Vancouver are key hubs for EV innovation. Local governments often provide subsidies and incentives to support the industry.
Where Can I Find Reliable News on Canadian EV Stocks?
Reliable news on Canadian EV stocks can often be found in specialized newsletters and reputable sources. Look for articles from verified authors that provide data-backed content and analytical results.
What Technologies Are Being Pioneered by Canadian EV Stocks?
In terms of technology, powertrains and lithium batteries are at the forefront. Engineering advancements are critical, and tools for better battery range are in continuous development. Pilot trials and concepts are often showcased at tech events.
What Is the Access and Reach of Canadian EVs?
Access to Canadian EVs is growing, especially in urban areas like Toronto and Vancouver. With thousands of charging stations in the network, many consumers are finding it more convenient to switch to EVs.
How Do You Make Money by Investing in EV Stocks?
To make money in the EV sector, consider investing in diversified funds or ETFs that focus on renewable energy and electric vehicles. Always keep an eye on the highs and lows of individual stocks and consult analysts for investment advice.
What Role Do Governments Play in the Canadian EV Market?
Governments play a pivotal role in shaping the EV market. They provide deals and incentives for both companies and consumers. They also work with engineering firms to improve the country’s charging network.
How To Stay Updated with the Latest Developments?
Stay updated by subscribing to industry-specific newsletters. These usually come from credible sources and include posts about the latest deals, name changes in the companies, and other market-related series of events.
What’s the Range of Canadian EV Models?
The range of Canadian EV models is expanding, with several new series being launched. Development in battery technology is also allowing for longer ranges, catering to a wider array of customers.
Are There Any Trial Programs for Canadian EVs?
Trial programs are sometimes offered to potential customers to test out the EV’s gear and features. These trial offers often make headlines in industry-specific news outlets and can be a significant selling point.