Best Electric Car Companies to Invest in UK – How to Invest in Electric Cars Today!

Fact Checked by Gary McFarlane

The electric vehicles and renewable energy markets are growing at an exponential rate. If you want to invest in electric car companies, you will need to create an account with a brokerage able to offer the relevant markets.

This guide will detail the best electric car companies to invest in and how to complete your stock purchase at an FCA broker that offers 0% commission.

Table of Contents

#1 Broker to Invest in Electric Car Companies UK – eToro

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How to Invest in Electric Car Companies UK – A Quick Guide For 2021

See below for a quick guide on how to sign up with eToro, a broker with a license from multiple regulatory bodies, including the FCA. The platform lists a variety of electric car companies to invest in at 0% commission.

  • Step 1: Open an Account with eToroTo create an eToro account you can click ‘Join Now’ and enter basic information surrounding your identity, as well as a username and password. The latter will be unique to you and will enable you to access your investments on the platform.
  • Step 2: Upload Your ID – When prompted, complete the KYC process. This entails attaching a recent bank statement or tax bill and a copy of your government-approved photo ID.
  • Step 3: Deposit Funds – You will need to finance your eToro account before you can invest in electric car companies. Enter the amount you wish to deposit, starting from $50 (approximately £37). Options include bank transfers, credit/debit cards, and e-wallets such as Skrill.
  • Step 4: Search for Electric Car Company – Type your chosen stock into the eToro search bar. For instance, if you want to invest in the electric car company Tesla, you should enter this and hit ‘Trade’ when you see it appear.
  • Step 5: Invest in Electric Car Company – Complete the trading order by adding the monetary amount you want to invest and clicking ‘Open Trade’. The minimum stake at eToro is just $50.

If the electric car company you invest in is trading at over $50 and you decide to stake the minimum, you are essentially opting to purchase a fraction of a share. This is ideal for investing in the best electric cars companies with a small amount of money.

Note that many electric car stocks are listed in US marketplaces such as the NASDAQ and NYSE, which trades 14:30 – 21:00 UK time. If you click ‘Set Order’ outside of these hours, eToro will ensure your investment is carried out when the relevant exchange reopens.

67% of retail investor accounts lose money when trading CFDs with this provider.

The Best Electric Car Companies to Invest – Our Top Picks

Choosing the best electric car companies to invest in isn’t the easiest of tasks. As such, we’ve whittled down our top picks and have listed them below for your perusal.

  1. Tesla – Invest in a Market Leader in Electric Car Sector
  2. General Motors – Best Stock to Invest in Automated Electric Cars
  3. Blink Charging – Best Way to Invest in Electric Car Charging Stations
  4. XPeng – Invest in Secular Growth of Chinese Electric Vehicle Market
  5. Workhorse Group – Tesla Alternative to Invest in US Electric Vehicles

When you grasp how to invest in electric car companies, the extra information that follows should give you a clearer idea of which better suits your goals.

 67% of retail investor accounts lose money when trading CFDs with this provider.

Best Brokers To Invest in Electric Car Companies UK – Shortlisted

The best brokers to invest in electric car companies in the UK will list a range of relevant markets. It’s also crucial that the platform holds a license from a regulatory body like the FCA and offers flexible investment options such as fractional stocks.

See our pick of the best platforms below.

  • eToro – Overall Best Place to Invest in Electric Car Companies in the UK
  • Capital.com – Trade Electric Car Companies at 0% Commission
  • AvaTrade – Credible Broker to Trade Electric Car Companies With Leverage

You will find detailed reviews of the above investment platforms shortly.

Best Electric Car Company Investments UK – Full Analysis

For some inspiration and to help you select the best electric car companies for your financial goals, below we offer full reviews of stocks that might be worth a closer look. As always, just be sure that you research your chosen stocks thoroughly before proceeding with an investment.

1. Tesla – Invest in a Market Leader in Electric Car Sector

If you want to invest in an electric car company that is widely considered an industry leader, look no further than Tesla. This electric car company went public on the NASDAQ in 2010 and is known the world over. Tesla delivered an estimated 500,000 electric vehicles in 2020 alone, namely crossover SUVs and Model 3 Sedans.

eToro Chart Tesla

See some information surrounding the price history of this electric car investment:

  • Tesla’s initial public offering was in 2010 and the shares were originally trading at an adjusted price of $3.84
  • A year later, in 2015, the shares had risen to around $50
  • Fast forward to late 2021, Tesla is priced at $1,013 per share
  • That’s an increase of 26,280% since its debut

Not only does the firm manufacture electric vehicles, but it also aims to create an ecosystem of sustainable energy products. This includes energy solutions such as solar roofs, power cells, storage systems, and much more.

As one of the market leaders, Tesla’s ongoing success could provide you with a profitable way to invest in electric car companies in the UK. The electric vehicle sector continues to grow, and it is clear that Tesla is a powerhouse. With that said, you need to conduct your own research before risking any money.

2. General Motors – Best Stock to Invest in Autonomous Electric Cars

Another option to invest in electric car companies in the UK is General Motors. This company has been around since 1908 and is listed on the NYSE. While it still offers gasoline and diesel-powered cars, it has since announced plans to be “all-electric” in the future. In fact, this longstanding company will increase its spending on autonomous and electric vehicles to $35 billion – which is over £26 billion.

eToro Chart General motors

The company is planning to speed up plans to produce fuel and battery cell technology by opening two battery plants in the US. Margins have been better than expected so far in 2021. Moreover, General Motors’ capital expenditure per share was around $7 billion in the pre-pandemic days of 2019. However, because of the company’s pledge to go all-electric, it’s expected to increase its CapEx to around $9 – $10 billion in 2022.

  • The electric car industry is experiencing a shortage of chips, due to problems at manufacturers
  • This caused well-known car manufacturer Ford to halt production of one of its best-selling vehicles, an all-electric truck the F-150
  • In stark contrast, General Motors has not let this chip shortage affect the production of its best-selling vehicles
  • Instead, any chips the company holds are allocated to high-priority vehicles, to not slow down production

Another reason you might invest in this company is brand loyalty. For instance, General Motors owns Hummer, Cadillac, Chevrolet, GMC, and Buick. Most avid Cadillac and Chevrolet drivers would not dream of switching to another brand.

As such, market commentators believe this company could be a big player in the electric vehicle space. This is because when all the above-mentioned brands move over to electric, it’s likely its loyal fans will follow suit.

3. Blink Charging – Best Way to Invest in Electric Car Charging Stations

You can invest in electric car companies in the UK via the firms that power the vehicles themselves. A good example of this is Blink Charging. This company was founded in 2018 and is listed on the NASDAQ. Blink Charging shares have risen by 57% in the last four weeks of trading alone, which is partly because of advantageous developments announced in the US.

President Joe Biden has pledged that funding of around $7.5 billion will be spent on electric vehicle charging companies. The US government is also offering a tax refund incentive of $7.5k per electric vehicle.

eToro Blink Charging Chart

To help you decide on the best car companies to invest in, in the UK, we’ve researched the price history of this company.

  • In November 2018, Blink Charging was trading at $2.37
  • During the same month in 2019, shares were priced at $1.75
  • Another year later, a share would cost $9.70, which is an increase of 154%
  • By late 2021, Blink Charging shares are around $44

Between 2020 and 2021, Blink Charging has risen by over 353%. As such, this might be one of the best electric car companies to invest in. Although the future looks bright for Blink Charging, you should always carry out personal research when learning how to invest in electric car companies.

4. XPeng – Invest in Secular Growth of Chinese Electric Vehicle Market

As you may or may not know, China is the world’s biggest car market in the world, which is hardly surprising given the size of the population. XPeng is among the top US-listed Chinese electric car companies.

The firm launched on the NYSE in July 2021 at $15 per share. XPeng produces one of the lowest-priced lidar-enabled electric vehicles with an advanced driver system. The company delivered around 10,138 electric cars in October 2021 alone.

eToro XPeng Chart

Considering how new this firm is, compared to the likes of General Motors, it has potential as a growth stock and thus – could be a great electric car company to your portfolio. On its first day of trading on the NYSE, shares increased by around 41%, so naturally, the company hit the ground running.

Before you make a decision on the best electric car companies to invest in, take a look at the short price history of this US-listed Chinese stock:

  • At the end of August 2020, XPeng was trading at $23
  • By late November 2020, shares had risen by 178% and were priced at $64
  • In mid-May 2021, XPeng stock was valued at around $26, showing a drop of around 59%
  • In just over six months, shares had risen to $50, illustrating an increase of over 92%

As you can see, this start-up company had an impressive start on the NYSE. At the beginning of 2021, things slowed down for the stock. However, things have improved significantly, so this could be a top electric car company to invest in.

According to the China Association of Automobile Manufacturers, the sale of electric cars is expected to rise by around 30% in the country by the end of 2021. Again, it’s vital that you research the matter yourself.

5. Workhorse Group – Tesla Alternative to Invest in US Electric Vehicles

When thinking about the best electric car companies to invest in, Workhorse Group is another stock to consider. This company manufactures electric-powered vehicles, covering delivery, utility, and more. Workhorse Group was founded in 2007 and is listed on the NASDAQ. Its IPO listed the shares at $1.15 each.

eToro Chart Workhorse

Many market commentators believe that the low price of Workhorse Group shares presents a great opportunity to enter the market before things really take off.

  • This is because in February 2021 shares in this electric car company were at $40.61
  • By late November 2021, Workhorse Group is trading at around $7
  • This represents a drop of over 82% in around 9 months

Some analysts think this stock could rise by over 350% by 2026. Before you invest in this electric car company in the UK, be sure to explore the ins and outs of the stock and its price history.

 

Best Place to Invest in Electric Car Companies in the UK

The best place to invest in electric car companies in the UK will provide you with access to a regulated and easy-to-use environment. The below-reviewed platforms can offer just that, as well as access to the best electric car companies, with a low-cost approach.

1. eToro – Overall Best Place to Invest in Electric Car Companies UK

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eToro is a trusted place to invest in electric car companies in the UK. The FCA, ASIC, and CySEC regulate the space and the broker is a member of the FSCS. This platform charges 0% commission to invest in/trade stocks and ETFs and the spread is tight. eToro serves more than 20 million clients and supports tons of payment types.

When you have created an account, you can finance it using e-wallets, bank transfers, or credit/debit cards. As you will fund your account with British pounds, you will be charged a competitive FX fee of 0.5%. This is to swap GBP over to US dollars when making a deposit. The minimum amount needed to fund your eToro account is $50, and the same goes for the lowest stock investment required.

etoro review

Top electric car company stocks include Tesla, Workhorse Group, Blink Charging, XPeng, and NIO. There is also the option of passively investing in a basket of assets via the CopyPortfolio feature. One of the most fitting portfolios would be the ‘Driverless’ option, which includes companies such as Tesla and NIO and is regularly rebalanced by eToro on your behalf.

eToro also offers Copy Trading. You can choose a seasoned trader who focuses on a specific sector and invest in them. Whatever they buy or sell will appear in your own portfolio. This broker also offers a free mobile app to allow you to invest on the move. Finally, eToro is home to plenty of other asset classes in addition to stocks and ETFs – including cryptocurrencies, forex, gold, eneriges, and more.

Pros

  • Invest in stocks and ETFs at 0% commission
  • Minimum investment per trade from just $50
  • Supports debit/credit cards, e-wallets, and local bank transfers
  • Regulated by the FCA, CySEC, and ASIC, and covered by the FSCS
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Trade Electric Car Companies at 0% Commission

capital.com review

Capital.com is another top-rated brokerage, this time offering access to electric car companies via CFDs. This enables you to speculate on stocks without owning shares. For instance, let’s say you are trading a Tesla CFD. The CFD in question will track the real-world market price of Tesla and mirror it. All you have to do is predict its future value.

If you think the price of your chosen electric car company will increase, you can create a buy order, or go short with a sell order if you believe it might fall. The best share CFDs listed at Capital.com include Blink Charging, Tesla, Lordstown Motors, and XPeng. All are available to trade commission-free and with competitive spreads.

capital.com review

Capital.com requires a minimum deposit of just £20 if you finance your broker account using a credit/debit card or e-wallet. For those who prefer a bank transfer, be prepared to wait several days for it to clear. Furthermore, the minimum deposit will be £250, instead of £20. This platform is regulated by bodies including the FCA, ASIC, NBRB, and CySEC. Capital.com also offers a mobile app so that you can trade on the go.

Pros

  • Top-rated spread betting and CFD broker
  • Regulated by the FCA, ASIC, CySEC, and NBRB
  • Minimum deposit just $20 (debit/credit cards and e-wallets)
  • 0% commission on all markets
  • Tight spread and no deposit/withdrawal fees
  • Thousands of financial markets supported
  • Great for beginners

Cons

  • Advanced traders might find the platform too basic
  • Minimum deposit of £250 on bank transfers

78.77% of retail investor accounts lose money when trading CFDs with this provider.

3. AvaTrade – Invest in Electric Car Companies via Leveraged CFDs

avatrade review

AvaTrade also offers access to electric car companies via CFDs, although not as many as the aforementioned platforms. This broker offers share CFDs with 0% commissions and low spreads. If you are underwhelmed with the number of share CFDs available, you also have the option of connecting your account to third-party platform MT5.

Share CFDs related to electric vehicles include Tesla and NIO. If you connect to MT5, you will also be able to use trading tools to analyze the markets. AvaTrade offers leverage up to 1:5 on share CFDs. As such, if you allocate £200, you could potentially open a position worth £1,000. Use leverage with care, as it can magnify losses as well as gains.

avatrade review

AvaTrade offers a safe trading environment and is regulated in multiple jurisdictions. When the time comes to finance your trading endeavors, the minimum deposit is just £100. You will have the choice of credit/debit cards, bank transfers, and e-wallets. AvaTrade offers a mobile app which is free of charge to download on iOS and Android devices.

Pros

  • Regulated in seven jurisdictions
  • 0% commission on all supported markets
  • Offers spread betting and CFD instruments
  • Minimum deposit of just £100
  • Free demo account
  • Supports MT4 and MT5

Cons

  • Spread betting department limited to just 200+ financial markets
  • No support for instant bank transfers

Trading CFDs and FX Options entail risk and could result in the loss of your capital.

Invest in Electric Car Companies UK: Selecting the Best Electric Car Investment

Learning how to invest in electric car companies in the UK is relatively straightforward. With that said, selecting the best investment can be difficult, due to the sheer number of companies stepping into this sector.

We’ve talked about the best electric car stocks in detail throughout this guide. Below, you will see a list of important metrics to consider when building a portfolio on a self-directed basis.

Risk

Before you invest in electric car companies in the UK, you need to make yourself aware of the risks involved in doing so. That is to say, perform thorough research into your chosen market and ensure the broker you choose is reputable and regulated.

The biggest risks of investing in electric car companies are as follows:

  • Some market commentators think that electric car companies are still making vehicles that are too expensive for the general public
  • Electric car companies are faced with competition from rival manufacturers and legacy automakers
  • As such, you run the risk of investing in a stock that decreases in value, therefore you could face a loss

Many investors mitigate risk by creating a diverse portfolio of assets. It’s also wise to access the electric vehicle market via a broker that is regulated and facilitates fractional investments.

One of the best FCA brokers is eToro. The platform allows you to invest in electric car companies in the UK from $50 and is regulated by the FCA and covered by the FSCS.

Historical Performance

When you are considering the best way to invest in electric car companies in the UK, always ensure you look at some price history. The historical performance of a company can aid you in making informed decisions in the future and offer you some insight into how the stock might grow or fluctuate.

Google General Motors Chart

A good example of this is the aforementioned General Motors:

  • General Motors was founded in 1908
  • As such, there is over 100 years worth of price history to view
  • In November 2010, General Motors was trading at $34
  • During the same month, in 2020, shares were at $43, showing an increase of 26%
  • A year later, in late November 2021, General Motors stock is valued at around $63

Essentially, it’s the fluctuations in the trading price of the electric car company that you will look to capitalize on later down the line. The goal you are hoping to achieve is that you can cash out your investment later for more than you originally staked – which constitutes a profit.

Best Way to Invest in Electric Car Companies Passively

Although many people invest in electric car companies in the UK by carefully selecting individual stocks – there are other options.

See the best alternative below:

Electric Car Company CopyPortfolio

During our review on top-broker eToro, we mentioned that the platform offers a passive tool called Copy Trading. The broker also offers CopyPortfolios, which refers to a basket of industry-specific stocks managed by eToro.

Like in the case of ETFs, eToro will regularly rebalance the portfolio in question, largely based on the performance of the company it tracks. There are many investment vehicles to choose from depending on your chosen market.

eToro CopyPortfolio Driverless EV

We checked out what’s available for those looking to invest in electric car companies and discovered ‘Driverless’:

  • Rather than copying individual stocks, you will access multiple electric car companies and sustainable energy firms within this one portfolio
  • This allows you to take a hands-off approach to investing, whilst also adding electric car company stocks such as Tesla to your portfolio
  • Other companies include General Motors and NIO
  • This CopyPortfolio doesn’t just concentrate on electric car manufacturers
  • It also includes firms that are involved with renewable energy technologies

In order to invest in electric car companies via the CopyPortfolio tool, you will need to select ‘Driverless’, and click ‘Invest’. Choose how much to allocate and you will find the investment within your portfolio of assets.

You will now mirror multiple markets under one investment. Positions within a CopyPortfolio like this will be rebalanced, thus opened and closed periodically. This is to maintain the portfolio’s strategy and asset allocation ratio. eToro does not charge management fees, but you will be required to pay the spread on the underlying financial transactions, so do check out the fee table.

How to Invest in Electric Car Companies UK – Detailed Walkthrough

By this point in our guide, you should have a better idea of the best electric car companies to invest in. Whether you are looking for UK, US, or Chinese-based stocks, there is something for everyone.

The quick walkthrough earlier might have been too basic for newbies. As such, beginners will find a more detailed account of how to sign up to invest in electric car companies in the sections below.

Step 1: Open a Trading Account

You can sign up with eToro to create a trading account in a few simple steps This broker services over 20 million people, offers low-cost trading and a variety of commission-free electric car stocks. Next, complete required information like a password and username. Followed by your email and phone number, and of course, your first and last name.

how to join etoro

After telling the broker your nationality, date of birth, and address, you can finish the KYC process to invest in electric car companies. Attach a copy of a utility bill or bank account statement that contains your name, address, and date of issue. You also need to attach a copy of your driver’s license or passport.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Add Investment Funds

When you are ready to invest in electric car companies in the UK, you will need to finance your account. eToro supports a varied number of payment types to fund your account. We found this to include UK bank transfers, e-wallets such as Skrill and PayPal, and debit/credit cards.

Deposit Funds

The minimum deposit is $50 at eToro and, as you will be financing your account with GBP, there is the aforementioned 0.5% charge to pay. This is only 50p for every £100, which is highly competitive.

It also saves you from converting to US dollars when investing in US-listed stocks. Add an amount to deposit and confirm by clicking ‘Next’.

Step 3: Search for an Electric Car Company to Invest in

Search for your chosen electric car company investment by typing it into the search tool. In this example, we are looking for Tesla.

eToro Search Tesla

To confirm, click ‘Trade’, located next to the asset of your choice.

Step 4: Invest in Electric Car Company

eToro will allow you to invest in the best electric car companies in the UK with as little as $50. As such, you are not limited to having to purchase a full share. In our example, we are looking to invest $200.

eToro Tesla Order Form

When you have decided how much to invest in your chosen electric car company, you can add it to the ‘Amount’ field and press ‘Open Trade’. eToro will execute your order and add the shares to your portfolio.

Take note, in our example above, the investment form states ‘Set Order’ because the US markets are closed. Once we click this button, eToro will place our order when the market reopens in the morning.

Best Electric Car Companies to Invest UK- Conclusion

The electric vehicle industry is booming, with market commentators expecting global sales to increase by 70% in 2021 alone. Today, we’ve talked about the best electric car companies to invest in. Not only does this include electric vehicle manufacturers like Tesla but also companies such as Blink Charging. This is a firm tasked with creating a network of stations to power electric cars.

The best way to invest in electric car companies in the UK is via a trusted broker – of which eToro is the best option. There is a diverse selection of electric car companies to invest in with 0% commission, tight spreads, and small stakes starting from $50. The broker is a member of the FSCS and is approved by the FCA.

eToro – Best Platform to Invest in Electric Car Companies UK

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.