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Next Tesla! This 1 Top Canadian EV Stock Just Got Irresistible

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As the demand for electric vehicles (EVs) continues to surge around the world, shares in Tesla continue to climb. The stock is up over 300% in the last year and over 2,000% in the last five years alone. With the demand continuing for the foreseeable future, it looks like the company’s six consecutive profitable quarters will continue as well. The company seems to be the dominant force of the EV industry. And this has encouraged other carmakers to jump on the bandwagon.

Competition heating up for Tesla stock

Sure, Tesla is far and away the dominant force when it comes to innovation with the EV industry. However, there are other companies out there that are seeing the green, in more ways than one. Companies like Ford and General Motors recently announced there would be a shift towards EVs over the next decade. In fact, General Motors wants to have an entire line of EV and plug-in hybrid vehicles by 2030.

The growing tide also comes on the back of new United States president Joe Biden, who is putting aside billions towards green initiatives. This includes the EV market, where he hopes to have 650,000 federal vehicles replaced by EVs in the next several years. This continues to be a jump for Tesla stock.

Then there’s China to consider. The country is the largest consumer and producer of EVs. These cars are likely to be massed produced around the world, leaving the opportunity open for even more companies to see growth through EV demand. With the EV industry likely to be worth $1 trillion by 2030, it’s clear how.

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Diversification

Tesla stock also saw movement recently, as Elon Musk invested US$1.5 billion in Bitcoin. This sent a massive buying spree into cryptocurrency, with Bitcoin worth almost $70,000 as of writing! Management also announced it would be accepting cryptocurrency in the near future.

So, while this investment should help the Bitcoin industry, it’s not as clear that the company will continue its streak as the EV leader. This, again, leaves room for others to come up with cheaper options for customers to buy up. With companies like Ford and General Motors now on the train, it won’t be long until everyone has an EV in their driveway.

How to benefit

Buy Magna International (TSX:MG)(NYSE:MGA). The company creates equipment for vehicles and light trucks worldwide. As the world shifts towards EV, this company stands to make a killing with this shift in the auto industry. Even during the downturn, the company has maintained a healthy balance sheet. That means it really has nowhere to go but up.

Sales for the recent quarter were up 12%, with cash increasing to $2.3 billion — a jump of 35% that helped lead to an 8% jump in the company’s dividend. While the annual sales dropped by 17%, the company remains confident that this shift in technology will see it on top for years, even decades to come.

The company expects to see total sales reach about $45 billion by 2023, driven by expansion throughout North America, Europe, and China. This is likely to explode due to the company’s joint venture with LG Electronics announced back in December. Together, the pair should be able to create everything an EV needs, computer-related or otherwise. Basically, the growth opportunities are endless for this stock.

Foolish takeaway

While you might be worried you missed out on the best EV stock, Tesla stock may start to really slow in the next while. Meanwhile, a solid company like Magna stock has seen 66% growth in the last year and 167% in the last five years, so it’s no slouch. You can get on the action and then some by considering it today.

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Before you consider Tesla, you may want to hear this.

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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.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool recommends Magna Int’l.

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