Should UK investors join the electric vehicle (EV) revolution with Tesla stock?

first_img The electric vehicle (EV) industry has been one of the top performers this year. And the one share that gets the most attention is California-headquartered Tesla (NASDAQ: TSLA). With a market cap of $280bn, it’s the most valuable automotive company in the world. Year-to-date, Tesla stock is up around 260%, hovering at $1,500. Founder Elon Musk’s fortune has now surpassed that of Warren Buffett’s.On July 22, the company reported Q2 earnings. Therefore today, I’ll take a closer look at the potential of EV shares for long-term UK investors. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Tesla stock: four straight quarters of profitThe most recent earnings report marked four consecutive profitable quarters for the electric carmaker. It reported $104m in profit for the April to June quarter. It would be important to remember that due to lockdowns, its Fremont, California manufacturing plant was closed down for about half of that period.Tesla stock is now eligible to join the S&P 500, the index of top companies in the US. If it were to become part of the coveted index soon, the company would be among the top 20 most valuable companies. In that case, many funds that track the index would have to add Tesla stock into their holdings, a move that would likely support the share price in the coming months.Musk has recently confirmed the company is “very close” to achieving Level 5 autonomous driving technology. He gave a video message at the opening of Shanghai’s annual World Artificial Intelligence Conference (WAIC). Tesla’s founder referred to the capability to navigate roads without any driver input and said: “I’m extremely confident that Level 5 or essentially complete autonomy will happen, and I think will happen very quickly”. Industry analysts currently debate whether the technology will be ready that fast. Yet when Musk speaks so boldly about the future of EV automation, investors in Tesla stock listen and add to their long positions. Other US-based EV manufacturers to considerIn the past few months, other EV manufacturers have also been attracting Wall Street’s attention. Oregon-based Arcimoto (NASDAQ: FUV) may excite your interest if you’re looking for a cheap share that could become the ‘next Tesla stock’. FUV shares currently have a price tag of $5.88. After going public in September 2017, Arcimoto has built its production facility. Since September 2019, it has been producing and selling the Fun Utility Vehicle.Texas-based Ayro (NASDAQ: AYRO) started trading on the NASDAQ composite on May 29 following a merger with DropCar, which was already listed on the exchange. The group creates sustainable electric solutions for last-mile delivery, fleet management, and closed campus transport such as golf courses, universities, or airports. These light-duty vehicles are typically classified as low-speed electric vehicles (LSEVs). They serve a niche, yet growing, market.Ayro shares opened at $4.10, but by June 4, were down to $2.15. Yet investors’ risk appetite in EV shares helped push the shares to a high of $8.18 on July 6. Now they’re around $4.80.Foolish takeaway on Tesla stockDo you believe that the new decade will see increased investor appetite in electric vehicles? Then you may want to research the suitability of EV shares like Tesla, as well as FUV or AYRO. Once you’re ready to hit the ‘buy’ button, you should typically be able to buy these US-based stocks through your broker. Enter Your Email Address Should UK investors join the electric vehicle (EV) revolution with Tesla stock? Image source: Aston Martin tezcang has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Tezcan Gecgil, PhD | Friday, 24th July, 2020 | More on: TSLA center_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Tezcan Gecgil, PhDlast_img

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