Canadians: 3 Top EV Stocks to Buy Today

TSX investors on the hunt for exposure to the electric automobile market should snag EV stocks like Blackberry Ltd. (TSX:BB)(NYSE:BB).

| More on:
You Should Know This

Image source: Getty Images

The electric vehicle market has continued to catch the attention of investors in the beginning of this decade. This is a market geared up for big growth in the years and decades ahead. Allied Market Research recently projected that the global electric vehicle market would grow from $162 billion in 2019 to over $800 billion by 2027. This would represent a compound annual growth rate (CAGR) of 22.6% over the projected period.

Canadians should look to get in on this lucrative space. Today, I want to look at three of the top EV stocks to snatch on the TSX. Let’s dive in.

Why lithium stocks are hot again

Lithium stocks were red-hot in the final years of the 2010s, before succumbing to a sharp correction. The lithium gold rush was stumped by a lack of demand, but that is changing to kick off this decade. Lithium Americas (TSX:LAC)(NYSE:LAC) stock has already increased by more than five times its value from a year ago. Its shares were down 6% in early afternoon trading on January 27.

Recently, the U.S. Bureau of Land Management (BLM) paved the way for Lithium Americas to jump fully into lithium production. It gave final approval to Lithium Americas’ Thacker Pass battery-grade lithium carbonate project in Nevada, opening the door to commercial production in 2022.

This EV stock is a top auto parts manufacturer

Magna International (TSX:MG)(NYSE:MGA) is the largest automobile parts manufacturer in North America. The automobile sector took a significant hit during the COVID-19 pandemic. EVs were not exempt from this pullback. However, the picture is looking brighter in the beginning of 2021. Shares of Magna have more than tripled from the 52-week low it fell to during the March 2020 market crash.

This top auto parts company has attracted attention since it announced a further foray into the EV space in late December. It will form a joint venture with LG Electronics to build components for electric vehicles. Earlier in 2020, Magna revealed that it would help to manufacturer an electric vehicle for start up Fisker Inc. in Europe.

Shares of Magna have gained huge momentum over the past year. Value investors may want to wait for a more attractive entry point, especially as we await its next batch of earnings. Magna also offers a quarterly dividend of $0.40 per share, which represents a 2.3% yield.

How BlackBerry is moving into the EV space

BlackBerry (TSX:BB)(NYSE:BB) is the final EV stock I want to look at today. Its shares have erupted in January, partly on the back of a social media-fueled campaign. However, it has also attracted positive attention after it announced a collaboration with Amazon. The two companies will aim to develop cutting-edge automobile software. This software, called IVY, is expected to hit the market in vehicles by 2023.

Moreover, according to a recent CNET report, Baidu’s high definition mapping technology for its vehicles will run on BlackBerry’s QNX Neutrino real time operating system. The technology will be used by Guangzhou Automobile Group and future electric vehicles from Baidu.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Baidu. Tom Gardner owns shares of Baidu. The Motley Fool owns shares of and recommends Amazon and Baidu. The Motley Fool recommends BlackBerry, BlackBerry, and Magna Int’l and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

More on Investing

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.

3 TSX Stocks I’d Buy This Week

Are you struggling to find stocks to add to your portfolio this week? Here are my three top picks!

Read more »

Target. Stand out from the crowd
Dividend Stocks

3 Oversold Stocks to Buy for Passive Income

These three oversold stocks aren't just great right now for high passive income, but provide exposure to high-growth industries.

Read more »


3 Stocks to Hold in Your TFSA for Easy Tax-Free Income

Telco stocks like BCE Inc (TSX:BCE) offer high dividend income -- especially when held in a TFSA!

Read more »

Hand arranging wood block stacking as step stair with arrow up.

Why Shawcor (TSX:SCL) Stock Jumped 9% in September

Shawcor Ltd. (TSX:SCL) stock has rallied off big gains after announcing that big changes may be ahead over the next…

Read more »

Mature financial advisor showing report to young couple for their investment
Bank Stocks

Retire Young: How to Turn a TFSA or RRSP Into $1 Million

Here’s how you can turn your TSFA or RRSP into $1 million or more to plan your early retirement.

Read more »

A person holds a small glass jar of marijuana.
Cannabis Stocks

Cannabis Stocks Jump: What Investors Need to Know

Cannabis stocks have started to recover in recent weeks, showing there might be signs that now is the time to…

Read more »

money cash dividends
Dividend Stocks

TFSA Passive Income: Invest $30,000 to Earn $500,000 + $7,800 in Tax-Free Dividends

Make the power of compounding work for you and turn a $30,000 investment into $500,000 in the next 20 years.

Read more »

Online shopping
Tech Stocks

Why Shopify Stock and Other Tech Stocks Jumped on Tuesday

Shopify (TSX:SHOP) stock and others started climbing on Oct. 4, but will the rise continue or fall back?

Read more »