Picks of the Decade! 2 Top Canadian EV Stocks to Make $2 Million Amid a Market Rally

The stock market is continuing to rally, as electric vehicle and tech stocks have recovered sharply in the last few sessions. Here’re two amazing TSX EV stocks that could help you multiply your savings in no time.

| More on:

Canadian stocks are continuing to rally on Thursday, as the S&P/TSX Composite Index posted a record high near 18,868 this afternoon. It was the fourth consecutive day when the market benchmark posted a new record high. Gradually subsiding pandemic-related woes and the reopening economy are increasing investors’ hopes about a positive change in the jobs market in the coming months. These key factors could be acting as a catalyst — fueling the market rally in March. Now, let’s discuss how you can multiply your hard-earned money by investing in stocks amid the market rally.

EV stocks are gaining momentum again

If you have been following auto industry developments in recent years, you might already be aware of the fast-growing demand for electric cars, self-driving cars, and smart mobility. These are becoming the biggest emerging trends in the market that are likely to grow exponentially in this decade. That’s why electric vehicle (EV) makers like Tesla (NASDAQ:TSLA) and NIO (NYSE:NIO) posted massive gains last year. While Elon Musk-led company’s shares yielded over 740% returns last year, its Chinese peer NIO’s stock jumped by 1,112%.

In 2020, most other businesses and industries struggled with COVID-19 woes. However, EV demand continued to skyrocket. That’s why NIO managed to more than double its total revenue last year to about US$2.5 billion. A 106% increase in its vehicle sales in 2020 and the rising contribution of automotive regulatory credits drove its massive sales gains. Similarly, Tesla has been reporting profits for the last six consecutive quarters. Its revenue rose by only 28% last year. But its adjusted net profits jumped to US$2.4 billion from just US$36 million in 2019.

Clearly, electric vehicles and related technologies are the areas where you should be investing your money if you want to make a fortune investing in stocks in the coming years. Here are my two favourite Canadian EV stocks that you can buy today.

Two top Canadian EV stocks to buy today

While many large automakers are following Tesla and NIO to spend billions of dollars to take advantage of consumers’ shift towards electric vehicles, many tech companies are also jumping in the race. Canadian tech companies like BlackBerry (TSX:BB)(NYSE:BB) and Magna International (TSX:MG)(NYSE:MGA) are focusing on the development of better technology for tomorrow’s EVs and autonomous cars.

In the last few months, both of these Ontario-based companies have raised their bets on EVs. For example, BlackBerry recently has partnered with big tech firms like Amazon Web Services and Baidu to develop more advanced data platforms and software for autonomous and electric vehicles. BB’s QNX Neutrino operating system is set to be used in upcoming mass-produced EVs in China — the world’s largest car market.

Likewise, Magna International is enhancing its portfolio of e-powertrain products. The company recently partnered with LG Electronics to produce various parts for electric vehicles. This could be one reason why analysts expect its revenue and bottom line to significantly improve in 2021.

Foolish takeaway

You may have already missed recent rallies in EV stocks like Tesla and NIO. However, Canadian EV technology stocks like BlackBerry and Magna haven’t seen much appreciation for their efforts in the autonomous and electric vehicle segments lately. I expect these stocks to outperform the broader market by a wide margin in the coming quarters, as their big investments in EV and autonomous car technology start giving results. That’s why you may want to add these stocks to your portfolio now.

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. David Gardner owns shares of Amazon, Baidu, and Tesla. Tom Gardner owns shares of Baidu and Tesla. The Motley Fool owns shares of and recommends Amazon, Baidu, and Tesla. The Motley Fool owns shares of NIO Inc. 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 Tech Stocks

Rocket lift off through the clouds
Tech Stocks

1 AI Stock Up 11% to Own in a TFSA for Long-Term Growth

Never mind chasing flashy AI start-ups with soaring valuations. Check out this profitable Canadian tech powerhouse that has stood the…

Read more »

Bitcoin
Tech Stocks

2 Top Crypto Stocks for the Blockchain Boom

Here's why investing in crypto stocks such as Coinbase can help you deliver outsized gains over the next 12 months.

Read more »

four people hold happy emoji masks
Tech Stocks

This Stock Down 14% Is My Hold-Forever Investment

The pullback in this high-growth Canadian stock is a buying opportunity for investors seeking outsized returns in the long term.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

This Tech Stock Could Dominate the Future of AI and Cybersecurity in Canada

OpenText may come to dominate the cybersecurity arena in Canada.

Read more »

Data center servers IT workers
Tech Stocks

Best Stock to Buy Right Now: Open Text vs CGI?

Both companies are dealing with information technology and harnessing the power of AI. Only one has an unmatched history and…

Read more »

Concept of big data flow, analysis, and visualizing complex information for artificial intelligence
Tech Stocks

A Tech Stock to Buy Now in the AI Bull Market

Alphabet (NASDAQ:GOOG) stock may be the cheapest American AI tech stock to pick up as markets near new highs.

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

Is This Canadian Tech Stock the Next Big AI Winner?

This Canadian tech stock is one of the biggest names out there still, and it's one to keep an eye…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

This AI Stock Down 12% Is My Moonshot Investment

This AI-powered supply chain management and operation planning software company is my top pick to leverage AI tech for years…

Read more »