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Analysis of Electric Vehicle stocks
18 Nov 2021 (445 views)  

I compare the financial fundamentals of several stocks that are involved in selling electric vehicles (EV).

The leader is clearly Tesla. Its stock price has increased by 146 tines since it went public in 2010.

Many investors looked towards the new EV startups and expect them to achieve the same spectacular growth. 

Some of the new startups have introduced impressive models with great specifications. They have also achieved impressive sales. 

I have invested in Tesla stock for the past three years. I want to point out a principle that is often overlooked by the investors. 

It is easy to design a EV with great specification. However, it is a challenge to produce the vehicle at a low cost to yield a good profit margin. 

Tesla is extremely successful because of its battery technology, low cost manufacturing, software and many other features. 

Some of these features are not present in the other EV stocks.

I present the financial fundamentals of the EV stocks in the table below.

Here are my key points:

a) Only four manufacturers are expected to show a profit for the next financial year. their ranking (from the lowest PE ratio) are BYD, Tesla, Li Auto and Nio.

b) All of the stocks have modest debt, with TPE ratio below 70%.

c) The figures show little about the recent IPOs, i.e. Lucid and Rivian. 

I have invested in Tesla and may invest in BYD. 

Note - This is my personal view. It is not financial advice. Please do your own research before you invest in any of these stocks.

Tan Kin Lian


Analysis of Electric Vehicle stocks
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I compare the financial fundamentals of several stocks that are involved in selling electric vehicles (EV).

The leader is clearly Tesla. Its stock price has increased by 146 tines since it went public in 2010.

Many investors looked towards the new EV startups and expect them to achieve the same spectacular growth. 

Some of the new startups have introduced impressive models with great specifications. They have also achieved impressive sales. 

I have invested in Tesla stock for the past three years. I want to point out a principle that is often overlooked by the investors. 

It is easy to design a EV with great specification. However, it is a challenge to produce the vehicle at a low cost to yield a good profit margin. 

Tesla is extremely successful because of its battery technology, low cost manufacturing, software and many other features. 

Some of these features are not present in the other EV stocks.

I present the financial fundamentals of the EV stocks in the table below.

Here are my key points:

a) Only four manufacturers are expected to show a profit for the next financial year. their ranking (from the lowest PE ratio) are BYD, Tesla, Li Auto and Nio.

b) All of the stocks have modest debt, with TPE ratio below 70%.

c) The figures show little about the recent IPOs, i.e. Lucid and Rivian. 

I have invested in Tesla and may invest in BYD. 

Note - This is my personal view. It is not financial advice. Please do your own research before you invest in any of these stocks.

Tan Kin Lian