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The Canadian stock market has seen a sharp selloff in 2022 due mainly to macroeconomic concerns, including high inflation, rapidly rising interest rates, and growing geopolitical tensions. While emerging signs of easing inflation have helped stocks across sectors recover slightly in the last few weeks, most electric vehicle (EV) stocks are still trading deep in the oversold territory. But does that make EV stocks worth buying right now? Let’s find out.
Are electric vehicle stocks worth buying now?
In the last decade, the auto industry has seen a big revolution with consumers’ growing interest in environmentally friendly EVs. The American electric carmaker Tesla has proven that electric cars don’t necessarily need to be less powerful and attractive than gasoline cars. This is one of the key reasons for the immense popularity of Tesla’s vehicles.
And as more people and authorities across the globe continue to become more aware of the damage gasoline vehicles are causing to the environment, you could expect the demand for electric vehicles to explode in the coming years. This fundamental factor is the first key reason why it could be the best time for investors to consider investing in electric vehicle stocks now.
Secondly, most EV stocks were trading with lofty valuations nearly a year ago. And the recent stock market pullback has made many quality EV stocks look even more attractive — giving long-term investors an opportunity to buy them now. Now, let me quickly highlight one of the best EV stocks you can buy in Canada right now.
This cheap EV stock is a screaming buy
When you’re investing in a revolutionary idea, you should try to be open to considering all the stocks expected to benefit from the idea instead of sticking to a few popular companies. As I said above, most EV stocks have already seen a massive rally in the last few years, which made their stocks look too expensive to buy. Despite a sharp correction in their share prices in the last year, they might still not be worth buying right now, considering their too high risk-to-reward ratio.
Instead, you can consider investing in other companies that are developing the technology for electric vehicles, like BlackBerry (TSX:BB). This Waterloo-based tech firm currently has a market cap of $3.6 billion, as its stock trades at $6.21 per share after losing nearly 48% of its value in 2022 so far.
BlackBerry primarily focuses on providing cybersecurity software to government and private organizations globally. But what I find more interesting about BB is its increasing focus on developing advanced artificial intelligence and machine learning-based solutions for futuristic EVs and autonomous cars.
While its QNX operating system is already used by top automakers worldwide, the company’s intelligent vehicle data platform IVY is likely to take BB’s presence in the auto industry to the next level. BlackBerry started developing the IVY platform, in partnership with Amazon Web Services, in December 2020. The platform would allow automakers to access and utilize real-time data from in-vehicle sensors to provide attractive features and functionalities to EV and autonomous vehicle consumers. Given that, you could expect BlackBerry’s financial growth to accelerate exponentially in the coming years and help its stock soar. That’s why you can consider buying this seemingly undervalued electric vehicle stock right now before it’s too late.