Electric vehicles quietly rely on one thing above all else: secure access to battery materials. Fresh attention on the Smackover Formation in the US, with large lithium deposits and interest from big energy groups, has pushed battery supply chains back into the spotlight. For investors, that shines a light on businesses linked to electric cars and components. This article breaks down three stocks from this cleaner-transport theme.
The three EV stocks covered below are only a sample of the opportunity, and the full screen surfaced 44 more listed businesses with equally compelling stories that do not appear in this article. To go broader and identify your own highest conviction ideas, head straight into the EV Stocks screener to filter and analyze the full set of electric vehicle manufacturers, battery suppliers, and component makers.
Ford Motor (F)
Ford Motor plugs into the EV Stocks theme through its Model e unit, which designs and sells fully electric models alongside software and charging. The wider group still leans on Ford Blue at about US$144.9b revenue and Ford Pro at roughly US$65.2b, giving a large US$50.0b automaker meaningful but not dominant EV exposure.
Ford Motor is building a larger base of high margin software subscriptions, with about 1.6 million paid subscriptions across the group, blended ARPU of around US$14 per month and contribution margins above 50%. This can increase recurring revenue and support earnings resilience if subscriber numbers and ARPU continue to grow.
What happens to Ford Motor’s profitability targets if one key cost pressure does not ease as quickly as current plans assume?
If that cost line worries you, read the full narrative for Ford Motor to see how Ford Motor’s software, scale and capital plans could reshape the risk reward trade off.
DENSO (TSE:6902)
DENSO is a global auto parts supplier focused on powertrain electronics and thermal management systems that are essential for EV batteries and hybrid drivetrains. It generates about ¥4.6t revenue in Japan, ¥2.0t in Asia and ¥2.1t in North America, and carries a market cap near ¥4.7t.
DENSO provides EV exposure through battery thermal management, electric compressors and powertrain control units that automakers use for hybrids and pure EVs. Earnings growth above 20% over the past year and a P/E of 10.8x frame that exposure in a notable way, depending on how one unseen pressure shapes long term demand for these components.
That hidden pressure could matter. Check the analysis report for DENSO to see whether DENSO’s EV leverage is being underappreciated by the market.
Rivian Automotive (RIVN)
Rivian Automotive sits squarely in the EV Stocks theme because it designs and builds battery electric pickup trucks, SUVs and commercial vans while also owning key parts of the charging and software stack that support those vehicles over time.
Rivian Automotive develops and sells battery electric pickups and SUVs, commercial delivery vans and related EV hardware, while also running a software and services arm. Automotive activities generate about US$4.4b of revenue and Software and Services about US$2.0b, with the group valued around US$19.4b.
Rivian Automotive matters here because it is not just making electric vehicles, it is trying to build an EV ecosystem that links hardware, charging and software into one package for both drivers and fleets.
"Rivian Automotive is using the R2 launch to reach a much larger midsize SUV audience at a lower entry price point than the R1 line. Early feedback, higher than expected preorder conversion and growing test drive volumes suggest further support for future vehicle deliveries and revenue from this product cycle."
What happens to Rivian Automotive’s valuation story if one key assumption about its future unit economics does not fall into place?
If that unit economics swing is what you care about, read the full narrative for Rivian Automotive to see how Rivian Automotive’s R2 push could accelerate or stall the whole story.
Seeking Alternatives Before Momentum Flies Past
Fresh ideas move first. Once momentum builds, the cleanest entries go fast and latecomers get caught chasing. Scan these curated shortlists while it matters and get in early.
- Spot potential cash machines before they trend by running the 8 dividend fortresses and focus on payouts that might keep portfolios funded even when prices swing.
- Hunt for future breakout leaders in physical assets through the 33 elite gold producer stocks and track producers tied directly to moves in the gold price.
- Target under the radar automation winners with the 89 robotics and automation stocks and follow companies building the machines and software that could reshape industrial productivity.
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