Automakers around the world are working overtime to pivot to electric vehicles and phase out gasoline-powered models.
The market for EVs looks enormous, with Fortune Business Insights forecasting that the value of the global EV market will reach $1.58 trillion annually by 2030. While Tesla (NASDAQ:TSLA) has a big lead currently, its competitors are closing the gap.
From start-ups to established auto giants, car companies are pulling out all the stops to gain market share in the highly competitive EV sector. Which companies ultimately emerge victorious remains anyone’s guess. But as the future unfolds, we invite you to look beyond Tesla. Here are three electric vehicle stocks you’ve probably overlooked.
Ford (F)
Ford Motor Co. (NYSE:F) recently made headlines in Canada when the Detroit automaker announced plans to build a $1.2 billion cathode active material plant for electric vehicle batteries in rural Quebec.
The Canadian facility is expected to begin operations in 2026 and produce an average of 45,000 metric tons of cathode active materials each year for Ford’s growing number of EV batteries. This is just one example of the ways in which Ford is pivoting its operations away from gasoline-powered vehicles and going all-in on electric.
Ford is investing more than $50 billion in EVs globally through 2026, leading to the creation of brand new vehicles such as the E-Transit van. Other innovations include electric versions of popular legacy models such as the Mustang muscle car and F-150 pick-up truck.
The company said in its most recent earnings release that it expects to be building EVs at a rate of 600,000 per year by the end of 2024. CEO Jim Farley continues to emphasize that Ford’s aim is to surpass Tesla as America’s top electric vehicle company.
F stock is flat on the year, having gained 0.73% since January.
Rivian Automotive (RIVN)
Rivian Automotive (NASDAQ:RIVN) has struggled but now looks to have turned a corner.
The company behind the fully electric R1T pick-up truck and Rivian electric delivery van (EDV) is being produced in partnership with Amazon (NASDAQ:AMZN). Its stock has gained 13% this year. The share price looks to have bottomed in June and since then, has risen 45%. That’s encouraging, especially since Rivian remains a start-up company that is not yet profitable.
The company’s second-quarter financial results were also impressive. Rivian reported an adjusted net loss per share of $1.08, which was much better than the expected loss of $1.41. Revenue of $1.12 billion exceeded consensus calls for $1 billion.
More importantly, Rivian said that it now expects to produce 52,000 electric vehicles in 2023, which would be over double the amount it manufactured in 2022. While Rivian remains unprofitable, it had $10.20 billion of cash on hand as of June 30 this year.
General Motors (GM)
Like archrival Ford, General Motors (NYSE:GM) is also going all in on electric vehicles. The largest U.S. automaker is spending $35 billion through 2025 to electrify its fleet.
At the end of June this year, the company announced plans to utilize Tesla’s North American electric vehicle charging network. Under terms of the deal, General Motors’ electric vehicles will have access to 12,000 Tesla fast chargers beginning in 2024. This will save GM billions on infrastructure investments and thus allow it to focus on producing actual vehicles.
General Motors encountered some hiccups with its EV production, due mostly to slow battery production. In spite of that, the company maintains that it will produce 400,000 electric vehicles in North America by the end of 2024. And 100,000 of those EVs will be produced in the second half of this year.
Long-term, GM’s considerable resources should enable it to catch-up if not lead in the race to produce electric vehicles for a global market. GM stock has declined 3% year to date.
On the date of publication, Joel Baglole held a long position in GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.