Beyond Cars: Top 3 EV-Related Stocks To Invest In Now

When considering electric vehicle (EV) stocks, investors generally start with sector behemoth Tesla (NASDAQ:TSLA) and fan out from there. Most of the time, it comes down to choosing between electric vehicle maker A and maker B. But these are notably EV makers of cars and trucks.

But what about all the other types of electric-powered vehicles? How many investors focus on those products and the companies that make them?

I recently read a Barron’s article discussing Norway’s MV Ampere, the world’s first battery-operated ferry. Powered by one-megawatt, the MV Ampere moves people between Lavik and Oppedal, Norway, across the Sognefjord fjord.

That got me thinking about EV-related stocks as alternatives to those representing EV car and truck manufacturers.

According to Tom Hesselink, executive director of the Electric Boat Association of America, I’ll be better off looking to Europe for possible choices, as America’s unlikely to make sweeping changes soon.

Perhaps, but here are my three EV-related stocks just the same.

Deere & Company (DE)

Deere & Company (NYSE:DE) accelerated its push into the electric market in December 2021 when it announced the acquisition of Kreisel Electric, an Austrian company developing “immersion-cooled electric battery modules and packs for high-performance and off-highway applications.”

Deere said in the announcement that it could see the battery technology in its turf equipment and small tractors. In February, John Deere launched the Z370R Electric ZTrak Residential Zero Turn Motor with plans to expand its lineup. The company stated in its Feb. 7 press release:

“The Z370R Electric ZTrak boasts strategically designed features and technologies, making for simplified, cleaner mowing without sacrificing the mowing experience when compared to a traditional gas mower…Promoting an easy adoption of electric solutions, the Z370R can be charged without removing the batteries by using a standard outdoor extension cord and a 110-volt grounded outlet.”

However, it’s not the first electric vehicle made by Deere. That distinction belongs to the company’s TE 4X2 Electric Gator Utility Vehicle, launched in 1999.

It’s hard to know how long Deere will take to bring out electric combines and tractors. For now, the electrification of its turf equipment products will have to suffice.

Long-term, DE stock is an excellent play, and their increasing electric options only makes it that much better.

LiveWire Group (LVWR)

LiveWire Group (NYSE:LVWR) is the electric motorcycle spinoff of Harley-Davidson (NYSE:HOG). Completed a year ago through the merger with a special purpose acquisition company (SPAC), the move generated $334 million in cash for LiveWire.

Harley launched the LiveWire in 2019. In 2021, it was relaunched by LiveWire as the LiveWire One, considerably cheaper at $21,399, down from nearly $30,000 in 2019. It had 146 miles of range and could be 80% recharged (DC fast charger) in 45 minutes. Its top speed is 110 miles per hour and can be 0-60 in three seconds.

LiveWire has grown sales every year since 2019. In 2022, it had $47 million in sales, up 31% from 2021 and 135% higher than its 2019 sales of $20 million. Last year, it sold 597 LiveWire electric motorcycles from 75 contracted partner locations.

There is one caveat: LiveWire continues to lose money. In 2022, it lost $85 million on an operating basis, $19 million higher than a year earlier. Costs were higher due to the ongoing development of its S2 Del Mar motorcycle. Luckily, the first units rolled off the line in late July and deliveries are expected to begin any day.

The losses are a big reason its stock is down 13% over the past year. However, LVWR looks like a thrilling ride if you’re an aggressive investor. LiveWire trades at 34.4x sales.

Taiga Motors (TAIMF)

This last selection is even riskier than LiveWire, however, Quebec-based Taiga Motors (OTCMKTS:TAIMF) could be just the ticket for the right type of investor.

Taiga makes electric personal watercraft (PWC) and snowmobiles.

In Q2 2023, it delivered 43 PWC and 102 snowmobiles while producing 178 vehicles. Its pre-orders were 2,981. Taiga is clearly trying to keep pre-orders at a realistic level so its production doesn’t get overrun. As of the second quarter ended June 30, the company’s Taiga Service Providers (TSPs) network had 20 locations in the U.S. and Canada to provide deliveries and after-sales service. It continues to scale this network.

Revenue in Q2 was 4.1 million Canadian dollars ($3.04 million), double Q1 2023 and 924% higher than a year earlier. Sales were much higher due to a 590% increase in vehicle deliveries over last year.

Due to supply issues for its Orca Carbon PWC, the company expects its production to be at the lower end of its previous guidance of 1,700-1,900 vehicles in 2023. Based on the list price of $20,966 per vehicle, and calculating $3.04 million divided by 145 delivered, Taiga could generate $35.64 million in 2023 revenue. That’s up considerably from 3.2 million Canadian dollars ($2.37 million) in 2022.

Taiga currently trades at 1.2x sales. Thus, the risk/reward proposition for the very aggressive investor ought to be enticing.

This post originally appeared at InvestorPlace.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.