Elon Musk: 3 Top TSX EV Stocks to Buy Before February

Tesla’s recent solid revenue and earnings growth reflect how rapidly the demand for electric vehicles is rising. Here are three great TSX stocks to buy before February that are set to gain from the EV boom.

| More on:
Car, EV, electric vehicle

Image source: Getty Images

The Elon Musk-led electric carmaker Tesla (NASDAQ:TSLA)  released its Q4 earnings on Wednesday after the market closing bell. The company’s fourth-quarter revenue zoomed up by 46% YoY (year over year) to US$10.7 billion. Its Q4 adjusted profits more than doubled from a year ago to US$903 million. TSLA produced nearly half-a-million cars last year. Overall, its financials reflected how rising EV (electric vehicle) demand could help it grow at a fast pace in the coming years.

Tesla is considered a great success today. However, this success didn’t come so easy. Musk — its CEO — faced sharp criticism for years from industry experts and the bears for being over-optimistic. Nonetheless, skyrocketing demand for EVs has helped Tesla silence its critics and made Musk the world’s richest person.

Here are three amazing Canadian EV stocks that you can buy on TSX without any delay to gains from the ongoing EV revolution.

Canadian EV stocks

Magna International (TSX:MG)(NYSE:MGA) is my first favourite Canadian EV stock. It’s a vehicle parts and mobility technology firm that has recently increased its efforts to benefit from the EV revolution. The company has also raised its stake in the artificial intelligence and autonomous vehicle segments lately.

In December 2020, Magna International and LG Electronics — the South Korean tech giant — formed a joint venture. The joint venture aims to help these companies expand in the fast-growing powertrain electrification market. The joint venture would focus on EV components such as e-motors and inverters. In the last few years, Magna International’s complete vehicle assembly segment’s revenue share has risen sharply — from 7.3% in 2015 to 17% in 2019.

Its already flourishing vehicle assembly and vehicle parts business helps the company fund its investments in future technology for autonomous cars and electric cars. This could trigger a rally in this TSX EV stock in the coming quarters, I believe.


BlackBerry (TSX:BB)(NYSE:BB) is another great TSX stock to benefit from surging EV demand. The company’s QNX operating system is already popular among carmakers. The company is currently developing a new integrated data platform in partnership with Amazon Web Services. This platform will help automakers collect vehicle sensor data and use it in-vehicle and cloud applications. BlackBerry plans to add more EV specific features to this platform.

BlackBerry also recently settled its disputes — related to intellectual property rights infringement — with the American social media giant Facebook. Also, I expect BB’s partnership with Baidu to allow it to rapidly expand its market share in China — the world’s largest EV market.

Although its stock has been highly volatile in January, I still find it worth buying for the long term.

Lithium Americas

Lithium Americas (TSX:LAC)(NYSE:LAC) is a Vancouver-based resource company. It’s currently building lithium development projects in Argentina and the United States. Lithium demand is already soaring as more electric cars in the world require more lithium-ion batteries for power. By the time Lithium Americas completes its projects, lithium’s demand is likely to skyrocket with more EVs on the roads worldwide.

Notably, batteries are one of the most critical and an expensive part of an EV. That’s why companies like Lithium Americas would play an important role in revolutionizing transportation with EVs. Its stock has risen by over 200% in the last six months. I expect this rally to continue, as the company comes closer to completing its lithium projects.

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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Gardner owns shares of Amazon, Baidu, Facebook, and Tesla. Tom Gardner owns shares of Baidu, Facebook, and Tesla. The Motley Fool owns shares of and recommends Amazon, Baidu, Facebook, and Tesla. 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. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Top TSX Stocks

Electric car being charged
Top TSX Stocks

Is Now the Right Time to Buy Magna Stock?

Magna International (TSX:MG) stock retains potential upside after a near 20% rally over the past month. There's one key risk…

Read more »

a person watches a downward arrow crash through the floor
Top TSX Stocks

Don’t Wait for the Market Bottom: These 2 Top TSX Stocks Are on Sale Today

Although waiting for the market bottom can be appealing, these two TSX stocks are already on sale and offer investors…

Read more »

Illustration of bull and bear
Top TSX Stocks

These TSX Stocks Have Plenty of Room to Run

These 3 TSX stocks offer handsome growth prospects amid challenging macro conditions

Read more »

top canadian stocks on tsx to buy november 2022
Top TSX Stocks

Top TSX Stocks to Buy in November 2022

Every month, we ask our freelance writer investors to share their best stock ideas with you. Here’s what they said…

Read more »

A plant grows from coins.
Top TSX Stocks

3 Stocks I’m Buying till I’m Blue in the Face

These three stocks are excellent long-term investments and ultra-cheap, making them some of the top stocks I'm buying in this…

Read more »

Man holding magnifying glass over a document
Top TSX Stocks

Why Is Everyone Talking About Nutrien Stock?

There’s more to the NTR stock (TSX:NTR) decline than an earnings miss and earnings guidance revision. Watch goodwill!

Read more »

Illustration of bull and bear
Top TSX Stocks

3 TSX Stocks Bucking Business Trends

Although many stocks are being impacted by the current environment, these three TSX stocks are still growing at an impressive…

Read more »

Women's fashion boutique Aritzia is a top stock to buy in September 2022.
Top TSX Stocks

4 Reasons I’d Buy Aritzia Stock

Aritzia unsurprisingly reported strong growth again this month, showing why it's one of the best long-term growth stocks to buy…

Read more »