To The Moon

One of the hottest sectors on the stock market today is the electric vehicle (EV) market. This industry is new and there has been a lot of speculation about what company will become dominant in the industry.

Tesla$Tesla Motors(TSLA)$ is easily the king of the EV sector for now since they have the best technology, and they are rapidly scaling production. Traditional automakers like Ford$Ford(F)$ and General Motors$General Motors(GM)$ are also making moves in this sector and are hoping to steal some of the market share from Tesla.

The valuation of Tesla’s stock has skyrocketed, making it one of the largest companies in the world valued higher than Ford and General Motors combined.

1- Tesla

There is no doubt that Tesla is the king of the electric vehicle industry. Tesla’s production has been skyrocketing every year and Elon Musk continues to scale it by building new factories around the world. Manufacturing is one of the largest obstacles for automakers to overtake when it comes to electric vehicles and Tesla has mastered this craft and only continues to get better.

Tesla’s stock price may be considered overvalued by certain fundamental analysts, but short-term price movements are caused by supply and demand rather than fundamentals. Analysts are seeing that Tesla has a larger market cap than other automakers like Ford, who have delivered a lot more vehicles than Tesla. Ford delivered 3 million cars in 2021 while Tesla delivered around 900,000. Tesla’s market cap is over $1 trillion while Ford’s is just $60 billion.

Tesla’s free cash flow went from $-2 million in 2018 to $3.4 billion in 2021. This means it went from burning $2 million a year to generating a cash inflow of over $3 billion. This is amazing growth, and it is reflected in the stock price in ways that some simply do not agree with.

2- Ford

In 2021 Ford sold 3.9 million vehicles worldwide, with 11,116 of them being electric vehicles. According to its CEO, Ford plans to increase electric vehicle production to 600,000 by 2023. While Ford is still far from matching Tesla’s electric vehicle sales, it still sells millions more cars in total, bringing in more revenue.

Ford brought in over $136 billion in revenue in 2021 alone, which is 2.5x more than Tesla’s revenue of around $53 billion. The real question is how many people will be converting to electric vehicles in the future. As of now, Tesla has the advantage when it comes to electric vehicle sales. If Ford can scale its production of electric vehicles to keep up with Tesla’s pace, they have a chance of being a top competitor in the industry.

3- NIO

NIO$NIO Inc.(NIO)$ is a Chinese electric vehicle company based in Shanghai. It is also involved in the FIA Formula E Championship which is a motorsport championship specifically for electric vehicles.

In 2021, NIO delivered over 91,000 vehicles, making them a solid competitor in the industry. It also has good technology like NIO Pilot which is a level 2 semi-autonomous system that offers advanced driver-assistance systems. This type of technology can provide features such as lane-keeping, adaptive cruise control, and emergency braking.

4- GM

General Motors is the largest automotive manufacturer based in the United States and is one of the largest worldwide. It delivered over 400,000 electric vehicles in 2021 alone, making it a solid competitor in the electric vehicle industry. General Motors brought in over $127 billion in revenue in 2021 just barely getting beat by Ford.

General Motors has announced that it will launch 30 new electric vehicles by 2025. GM manufacturers cars under brands such as Chevrolet, Buick, Cadillac, and GMC. General Motors began to deliver its Hummer EV pickup truck and the BrightDrop EV600 commercial vehicle, so it is making solid progress in the industry and is a stock to keep an eye on.

5- Rivian

Rivian Automotive$Rivian Automotive, Inc.(RIVN)$ is an American electric vehicle company that is primarily building SUVs. It is backed by Ford and Amazon$Amazon.com(AMZN)$ , giving investors hope that the company will It began delivering R1T pickup trucks in 2021 but only delivered a total of 920 vehicles for the year. Compared to its competitors, Rivian still has some way to go to catch up on deliveries.

Other ventures it is pursuing include building an exclusive charging network in the United States and Canada by 2023. As demand for electric vehicles increases, more charging stations will be necessary. This venture could pay massive dividends for Rivian in the future given the demand for EVs continues to do well.