How to invest in electric cars | See the 6 quick steps involved - Finder UK

How to invest in electric cars

Find out how to invest in electric cars and some of the risks involved.

Electric cars use electricity to run with rechargeable batteries. They don’t have any exhaust fumes and produce fewer emissions than standard petrol or diesel cars. We’ve listed some electric car stocks and explain how to get started.

There are a number of incentives worldwide to getting an electric car. In the UK, those buying electric cars can make use of the “Plug-in Car Grant”, which covers up to a 35% discount on the vehicle’s recommended retail price, up to a limit of £5,000. The UK government supports “Plugged-In Places”, a program designed to install vehicle recharging points across the UK.

As well as this, all electric vehicles qualify for a 100% discount from the London congestion charge.

To help reduce our impact on the environment, the UK has plans to end the sales of new petrol and diesel vehicles by 2030, as set out in the government’s 25 year environmental plan.

How to invest in electric cars

  1. Choose a share dealing platform. We’ve listed some below for you to consider. A lot of the companies listed below are based in the US, so to invest in them you’ll need to choose a provider that lets you trade US stocks.
  2. Open an account. Be prepared to give information about your income, national insurance number and where you live.
  3. Fund your account. You’ll need enough funds in your account to cover the shares you want to buy.
  4. Choose your electric car stocks and search for it. We’ve given you some ideas below. Make sure you do your research into the company’s financials and performance.
  5. Submit an order. Choose how many shares you want and review the price.
  6. Hit buy. Once you’re happy with the price of the shares and comfortable with your investment, hit “Buy”.

Electric car stocks

Here are some of the companies leading the way in electric cars.

Tesla Inc (NASDAQ: TSLA)

Tesla is an electric vehicle and clean energy company. It creates electric cars, battery energy storage, solar panels and solar roof tiles. Tesla was founded in 2003 as Tesla Motors.

Elon Musk, the CEO of Tesla was, until the end of February 2021, the world’s richest man. He fell behind Amazon founder Jeff Bezos when the plunging price of Tesla shares dropped him down to second place.

Nio Inc (NYSE: NIO)

Nio is a Chinese car manufacturer headquartered in Shanghai that specialises in electric vehicles. Nio has a network of 131 battery swap stations in 58 cities in China.

Nio cars are fitted with NOMI, which is AI technology that can control the music and take selfies of your passengers.

Li Auto Inc (NASDAQ: LI)

Li Auto, or Li Xiang is an electric vehicle manufacturer in Beijing.Li Auto specialises in hybrid vehicles, which can be powered with either electricity or gasoline as an attempt to wean consumers off of petrol powered vehicles.

Li Auto only floated on NASDAQ in July 2020, when it raised $1.1 billion (about £780 million) and was valued at around $10 billion (around £7 billion).

General Motors Co (NYSE: GM)

General Motors Co designs, manufactures, markets and distributes vehicles and vehicle parts. It’s the largest American automobile manufacturer and one of the largest in the world.

GM has committed to 30 new electric vehicles by 2025. It’s aiming to make its cars accessible to everyone with its Ultium Platform.

BMW AG (DAX: BMW)

BMW has started to produce electric cars, Plug-in Hybrids and Mild Hybrid vehicles. It’s got BMW 360° Electric, which offers charging technology, and the ChargeNow public charging network, giving access to more than 7,000 UK public charging points.

Compare share dealing platforms

Compare investment services

Table: sorted by promoted deals first
Data updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
UK: £2.95
US: $3.95
EU: €3.95
N/A
£0
Your first 100 trades are free with Fineco (T&Cs apply)
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. The minimum deposit with Fineco is £0. Capital at risk.
eToro Free Stocks
£0
N/A
£0
Capital at risk. 0% commission but other fees may apply. The minimum deposit with eToro is $200.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
£0
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. The minimum deposit with HL is £1. Capital at risk.
Degiro Share Dealing
UK: £1.75 + 0.014% (max £5)
US: €0.50 + $0.004 per share
N/A
£0
Degiro is widely seen as one of the best low-cost share brokers, for people who are looking to trade regularly. The minimum deposit with Degiro is £0. Capital at risk.
interactive investor Trading Account
£7.99 (with one free trade per month)
N/A
£9.99 per month
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. The minimum deposit with ii is £0. Capital at risk.
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Compare up to 4 providers

Data updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Moneybox stocks and shares ISA
£1
0.45% and £1 monthly subscription fee (free for first 3 months)
£0
Moneybox offers a smart and simple way to invest. Sign up in minutes and start investing with £1 via their award-winning app. Capital at risk.
interactive investor stocks and shares ISA
Any lump sum or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
N/A
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
InvestEngine stocks and shares ISA
£100
0.25%
£0
Offer - £50 welcome bonus for new customers. Subject to minimum investment. T&Cs apply. Capital at risk.
Moneyfarm stocks and shares ISA
£1500
0.75%
£0
Moneyfarm helps you meet your investment goals with fully-managed portfolios designed around you. Capital at risk.
Fidelity Stocks and Shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Legal & General stocks and shares ISA
Legal & General stocks and shares ISA
£100 or £20 a month
0.61%
N/A
Legal & General is a big financial services company which offers insurance, lifetime mortgage, pensions and stocks and shares ISAs. Capital at risk.
AJ Bell Stocks and Shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
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Data updated regularly
Name Product Minimum investment Choose from Fee for a £50,000 pension pot Brand description
Interactive Investor Pension
Any lump sum or £25 a month
Over 3,000 funds
Annual fee: £239.88, fund fees: £50-500
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Moneyfarm Pension
£1,500 (initial investment)
7 funds
0.35%-0.75%
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
Annual fee: £125, includes fund fees
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
PensionBee Pension
No minimum
9 funds
Annual fee: £250-475, includes fund fees
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100 or £25 a month
2,500 funds
Annual fee: £225 (£200 cap if holding shares), fund fees included
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
Penfold
Penfold
No minimum
4 portfolios
Annual fee: £375-455, fund fees included
Moneybox Pension
£1
3 funds
Annual fee: £225, fund fee: £60
Manage your money with an easy-to-use Moneybox app. Capital at risk.
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Compare up to 4 providers

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

The risks of investing in electric cars

Many hope that electric cars become the norm in society, but there are some risks involved.

The main one is with the materials needed to produce the cars. Lithium-ion batteries power today’s electric vehicles, but lithium is both difficult to mine and a finite resource. A rise in the production of electric vehicles will see demand soaring.

Lithium’s environmental impact could put environmentally conscious customers at odds with manufacturers. Moreover, regulations on lithium emissions may indirectly have a negative impact on the electric vehicle sector.

This article offers general information about investing and the stock market, but should not be construed as personal investment advice. It has been provided without consideration of your personal circumstances or objectives. It should not be interpreted as an inducement, invitation or recommendation relating to any of the products listed or referred to. The value of investments can fall as well as rise, and you may get back less than you invested, so your capital is at risk. Past performance is no guarantee of future results. If you're not sure which investments are right for you, please get financial advice. The author holds no positions in any share mentioned.

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