2 electric vehicle stocks to buy and hold for the next decade

I’m searching for the best electric vehicle stocks to buy for my shares portfolio. Here are two great US and UK shares I’d snap up right now.

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We are in the midst of a new motoring revolution. Carbuilders across the planet are making big pledges to supercharge production of electric vehicles (EVs) to harness growing consumer concerns over the environment. Some or manufacturers like Jaguar and Volvo plan to produce only electrically-powered cars within the next decade.

Sales projections for the EV market are nothing short of show-stopping. The experts at Statista, for example, reckon there will be 116m electric cars on the world’s road by 2030. Compare that to the 8.5m that were running last year.

Soaring demand for low-emissions vehicles leaves plenty of opportunities for UK share investors like me to make some decent cash. Here are two top-quality EV stocks I’d buy right now.

An electric vehicle stock I already own

TI Fluid Systems (LSE: TIFS) is actually a UK share I already own. It makes a wide range of car components like brake lines, fuel tanks and air conditioning tubes which it supplies to major automakers. And it’s doing a roaring trade at the moment as electric and hybrid vehicles require higher loadings of its products than combustion-engine-powered cars.

The business has put electrification front and centre of its growth strategy, and in the third quarter it racked up €232m worth of contract awards. It looks well on course to have its content loaded on more than half of key battery-powered vehicles in Europe and North America between 2020 and 2028.

However, TIFS isn’t having things all its own way at the moment. Microchip shortages and supply chain issues caused global light auto production to drop almost 20% in the third quarter. Consequently, revenues at this business slumped 14.7% year-on-year. These problems could persist for some time too.

However, I’m encouraged that TI Fluid Systems’ focus on electric vehicles has enabled it to outperform light vehicle output by such a colossal margin in recent months. It illustrates how this electric vehicle stock could outperform other auto-related shares as ‘clean’ vehicle sales rocket over the next decade.

Why I’d buy Tesla shares

As we’ve just seen again, the Tesla Motors (NASDAQ: TSLA) share price is highly sensitive to Tweets from its enigmatic founder and CEO. On this occasion, Tesla’s share price has sunk in premarket trading after Elon Musk asked Twitter users if he should sell around 10% of his stock in the company.

This unpredictability clearly creates danger for Tesla shareholders. But, as a long-term investor, I’m still thinking of buying the US carmaker for my portfolio. This is because, even accounting for periods of severe share price volatility, I reckon the Tesla share price should still rise solidly in the decade ahead.

Tesla is a market leader in the EV space, putting it in the box seat to ride the green motoring revolution. But, of course, Tesla is more than just a great EV stock. I also think its leading self-driving tech will help it make gigantic profits from the upcoming boom in autonomous driving. I believe Tesla has the vision and the brand power to make the most of the motoring revolution.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild owns shares of TI Fluid Systems. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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