7 Best EV Stocks in Canada 2024: Invest in Electric Vehicles

Electric vehicles have gained popularity over the past few years as the world shifts towards clean and renewable energy sources.

Currently, nearly every automaker in the world is working on electrifying its fleet of cars. China is currently the largest EV market in the world, accounting for more than 50% of total EV sales in 2022.

Electric vehicles in Canada hit 8.9 of all registered vehicles in 2022, up from 5% in 2021. In April 2022, the Canadian government announced that all new vehicle sales in Canada will be electric by 2035.

As an emerging global trend, electric vehicle companies have also made fine investments. While most of the big EV brands are based out of the US and China, Canada also has companies involved in the industry.

In this article, we will review 7 of the best EV stocks in Canada and cover their current and future prospects, some key facts, and how they look as an investment.

What is an EV Stock?

An EV stock is a publicly-traded company that is involved in the electric vehicle industry. 

These can be EV makers, EV infrastructure providers, or providers of EV components like batteries.

Electric vehicle stocks are considered high-growth companies and are mostly unprofitable at this stage in their business life.

Here is a look at the 7 best EV stocks for Canadian investors in 2024.

Best EV Stocks in Canada

Magna International (TSE:MG)

Magna International is an automotive parts manufacturer based out of Aurora, Ontario. It was founded in 1967 and is dual-listed on the TSX and the NYSE.

As the automotive industry shifts to all-electric, so too has Magna. It builds electric powertrains and BEV batteries for electric vehicles.

The company works with automakers like General Motors, Ford, Toyota, Tesla, Volkswagen, and Mercedes, to name a few.

Magna International is building several electric-vehicle parts plants in Canada that will supply automakers worldwide.

Here are some key facts for Magna International:

• Market Cap: $19.53 billion
• P/E Ratio: 24.81
• 52-week Trading Range: $63.55 – $91.74
• Sector: Automotive Parts
• Ticker Symbol: MG.TO
• 1-year Return: -11.60%

Lion Electric Co (TSE:LEV)

Lion Electric is an automaker for large industrial electric vehicles. It was founded in 2011 and traded on the TSX and NYSE.

The company is the largest EV maker in its segment, which includes waste disposal trucks, school buses, public buses, and semi-trucks.

It recently announced the launch of its new medium-duty all-electric truck the Lion5. This truck has a range of up to 200 miles and a max payload of 12,500 lbs. 

Here are some key facts for Lion Electric Co:

• Market Cap: $677 million
• P/E Ratio: 25.25
• 52-week Trading Range: $2.25 – $7.84
• Sector: Automaker
• Ticker Symbol: LEV.TO
• 1-year Return: -61.0%

GreenPower Motor Company Inc (CVE:GPV)

GreenPower Motor is a Vancouver-based electric bus maker with its primary production and operations in California.

The stock is listed on the Canadian Venture Exchange, similar to the US-domiciled OTC Markets. 

GreenPower has multiple different models of electric school buses, coach buses, and minibuses already on the roads. The company recently released its new all-electric aluminum utility truck in May 2023. 

Here are some key facts for GreenPower Motor:

• Market Cap: $91.5 million
• P/E Ratio: N/A
• 52-week Trading Range: $2.27 – $7.55
• Sector: Automaker
• Ticker Symbol: GPV.V
• 1-year Return: -54.0%

NFI Group, Inc (TSE:NFI)

The NFI Group is a Winnipeg-based producer of buses that operates across nine different countries. Its stock trades on the Toronto Stock Exchange.

It provides the production of sustainable and zero-emission buses and motor coaches.

As of 2022, the NFI Group has its EVs in 80 different cities across six countries, with over 65 million electric service miles provided.

Here are some key facts for the NFI Group:

• Market Cap: $700 million
• P/E Ratio: N/A
• 52-week Trading Range: $7.00 – $14.94
• Sector: Automaker
• Ticker Symbol: NFI.TO
• 1-year Return: -22.72%

General Motors (NYSE: GM)

General Motors is America’s largest automaker and was first established in Detroit, Michigan, in 1908. Along with Ford (NYSE: F), GM is one of the country’s legacy automakers. 

The company has dedicated itself to electrifying its large fleet of vehicles by 2035. GM announced in 2022 that it is spending over $6.6 billion to take on the EV heavyweights like Tesla (NASDAQ: TSLA). 

GM expects to build 50,000 EVs in the first half of 2023 and anticipates doubling that figure in the second half of the year. 

As of May 2023, GM pays out a dividend yield of 1.08% to shareholders quarterly. 

Here are some key facts for General Motors: 

• Market Cap: $44.86 billion
• P/E Ratio: 4.99
• 52-week Trading Range: $30.33 – $43.63
• Sector: Automaker
• Ticker Symbol: NYSE: GM
• 1-year Return: -20.68%

Tesla (NASDAQ:TSLA)

Tesla is the largest EV maker in the world and the most valuable automaker by market cap. It trades in US Dollars on the US-domiciled NASDAQ exchange.

Its rise to dominance has been swift, delivering 1.31 million EVs in 2022 up from less than 1 million vehicles worldwide in 2021. A vast majority of these vehicles are the Model 3 and the Model Y.

The company has GigaFactories in California, Austin, Texas, Berlin, and Shanghai. Its CEO Elon Musk is the wealthiest man in the world and is one of the most recognizable figures in the world.

Recently, Tesla announced that its long-awaited Cybertruck model will debut in the second half of 2023. The company also just released its Tesla Semi truck which retails for about $250,000 USD. 

Here are some key facts for Tesla:

• Market Cap: $510.9 billion
• P/E Ratio: 47.83
• 52-week Trading Range: $101.81 – $314.67
• Sector: Automaker
• Ticker Symbol: NASDAQ: TSLA
• 1-year Return: -44.62%

Nio Inc. (NYSE: NIO)

Nio is one of the more popular electric vehicle makers in China. It was founded in 2014 and is headquartered out of Shanghai. 

The company is widely known for its innovative EV technology. This includes its famous battery swap system, which allows drivers to swap out their batteries for fully charged batteries without having to line up and wait for a charger. 

With six current models and several more on the way in 2023, Nio is one company to watch in the Chinese EV market. Nio is also working on its global expansion to 25 countries by 2025 and has already expanded to several European markets. 

Here are some key facts for Nio: 

• Market Cap: $13.8 billion
• P/E Ratio: N/A
• 52-week Trading Range: $7.33 – $24.43
• Sector: Automaker
• Ticker Symbol: NYSE: NIO
• 1-year Return: -47.59%

How To Buy EV Stocks in Canada in 2024

You can easily buy EV stocks in Canada at discount brokerages.

Wealthsimple Trade

This discount brokerage is popular amongst younger investors due to its no-commission trading and online platform.

Wealthsimple offers free trading for stocks, ETFs, mutual funds, and cryptocurrencies on its desktop or mobile apps.

Questrade

Questrade is the largest discount brokerage in Canada and was established in 1999.

The site has a unique fee structure where you can buy shares of a stock for as little as $0.01 per share, although there needs to be a minimum of $4.95 per trade.

Qtrade

Qtrade is a Vancouver-based discount brokerage that provides lower fees than traditional bank brokerages.

While its fees are not as low as Questrade or Wealthsimple Trade, Qtrade charges $8.75 per stock trade.

Are EV Stocks a Good Investment?

Electric vehicles are a global trend that is still in its early days.

You can invest in EV stocks on the TSX, although Canada’s exposure to the industry is primarily through auto parts makers or electric bus makers.

As the global EV industry continues to grow, we should see EV stocks rise in value as demand increases.

EV stocks could potentially provide excellent returns over the next decade, particularly following the growth stock correction in 2022.

Downsides and Risks of EV Stocks

As with any investment, EV Stocks still have their risks and downsides.

Investing in a high growth and somewhat speculative industry can be a riskier investment than some are willing to make.

Every automaker in the world is shifting to electric vehicles. The industry could become crowded, and some market leaders could now see their market share decrease.

Currently, Canadian investors will likely have to look to investing in US automaker stocks for the best exposure to the industry.

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