The year 2020 proved to be amazing for electric vehicle (EV) makers and their shares. The demand for electric cars continued to remain strong, despite the global pandemic. This is one reason why the shares of many EV makers — including Tesla (NASDAQ:TSLA) — skyrocketed last year. Interestingly, TSLA stock rose by more than 740% in 2020 against a 16.3% rise in the S&P 500 Index.
I expect the year 2021 to be even better for companies betting big on electric cars and EV-related technology. Let’s take a closer look at one of my favourite Canadian EV technology stocks that just started March 2021 with the bang.
BlackBerry stock jumped 7% on Monday On Monday, the shares of Canadian enterprise software firm BlackBerry (TSX:BB)(NYSE:BB) surged by 7.1% amid the broader market rally. By comparison, the S&P/TSX Composite Index rose by 1.3% yesterday. There was no specific news related to the company that helped it start the month on such a solid note. The broader market optimism, along with BlackBerry’s strong fundamentals and its rising bets on EVs, could be the reasons why its stock rose by more than 7% yesterday. These gains came as a big relief for investors after the stock shed 28% in February.
BlackBerry stock is trading with a 63.4% rise on a year-to-date basis — thanks to its solid 113% gains in January.
Top Canadian EV stock If you’ve been observing the automotive industry trends for the last few years, you probably know that electric and autonomous cars are the next big thing. That’s the reason why most auto companies are speeding up the launch of their EVs.
But the rising craze of electric and autonomous vehicles is not limited to carmakers only. Many tech companies like Apple (NASDAQ:AAPL) are also planning to jump into the automotive market. Apple has been secretly working on its electric car project for many years now. Since 2015, the company has poached many top executives and engineers from other companies — including Tesla. Some analysts believe that Apple could launch its smart electric car services in the near future.
If a company like Apple — with over US$100 billion quarterly revenue — is running after the upcoming electric and autonomous car revolution, then it reflects the growth potential of the trend.
Similarly, Tesla has demonstrated the great growth potential of the fast-growing electric and autonomous car market in recent years. The EV maker has surprised everyone by reporting consistent profitability in the last six quarters. Tesla’s great success also recently made its CEO Elon Musk the richest person on the planet.
The next Tesla Tesla is primarily in the capital-intensive business of manufacturing cars. But many tech companies are developing the technology to make EVs and autonomous vehicles more secure, safe, and futuristic. Developing such technology doesn’t require as many resources as manufacturing vehicles do. That’s why it could be wiser to bet on such EV technology companies instead of betting on automakers.
BlackBerry is one such Canadian tech company that has raised its bets on the upcoming EV and autonomous car revolution. It has been heavily investing in artificial intelligence and vehicle data security platforms for the last many years. The company’s recent partnerships with Amazon (NASDAQ:AMZN) Web Services and the Chinese tech giant Baidu (NASDAQ:BIDU) are in line with its efforts to gain from the emerging automotive trends.
Foolish takeaway I expect BlackBerry stock to yield outstanding returns in the coming few years, as the demand for EVs and smart mobility skyrockets. That’s why you may want to add its stock to your portfolio right now — before it’s too late.
The post Next Tesla! This 1 Top TSX EV Stock Just Started March With a Bang appeared first on The Motley Fool Canada.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon, Apple, Baidu, and Tesla. Tom Gardner owns shares of Baidu and Tesla. The Motley Fool owns shares of and recommends Amazon, Apple, Baidu, and Tesla. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.
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