Mr. President, investors were banking on you signing that enormous climate, health, and tax bill.

With the President signing off on the landmark $430 billion package that earmarks a sizable chunk to clean energy policies, electric vehicle (EV) stocks have been, well, electric as of late.

Since traders returned from the July 4th holiday, the Fidelity Electric Vehicles and Future Transportation ETF (FDRV) is up 23%. Better yet, most of its holdings remain well off their all-time highs.

So with seemingly plenty of mileage left for long-term EV investors, what are some good ways to play the space? Tesla is arguably the most exciting option—but, closing back in on $1,000 per share, is expensive. Ditto for names like Qualcomm and Nvidia. 

Sure there are plenty of upstart EV manufacturers and service providers with low stock prices, but many are highly unprofitable if not approaching bankruptcy. 

There’s gotta be a cheap EV play that is well established in its respective market and has strong growth potential. These two EV stocks check both boxes—and are trading below $20 a share.

Is Ford an Underrated EV Stock? 

To say Ford Motor Company (NYSE: F) is going all-in on carbon neutrality is an understatement. Last week, the classic automaker signed the country’s biggest renewable energy purchase deal ever. Over time, Detroit-based DTE Energy will be supplying Ford’s Michigan plants with 650 megawatts of solar energy capacity. By 2025, Ford plans to have every vehicle manufactured in the state be assembled with 100% carbon-free electricity.

Many of those vehicles will be 100% electric themselves. Starting next year, Ford will operate under three segments including a dedicated electric vehicle division dubbed ‘Ford Model e.’ The company is preparing to ramp EV production in 2023 building off the success of its popular F-150 Lightning pickup truck, Mustang Mach-E sports coupe, and E-Transit delivery van. 

Much of the buildup is expected to involve E-Transit which has quickly established itself as the nation’s leading full-size electric van. The vehicle is gaining traction in Europe as well with customers having placed over 8,000 orders. Meanwhile, the Mustang Mach-E Premium all-wheel drive EV was just named AAA’s ‘Best Overall Car’ for 2022, a sign that Ford is standing out in increasingly crowded EV competitor traffic.

After blowing past Wall Street’s second-quarter earnings estimate, Ford is now slated to deliver 2022 EPS of $2.08. With the stock trading around $16, this means the automaker is trading around 8x this year’s earnings. Tesla’s FY22 P/E ratio? A bit more pricey 74x.

What is a Good EV Charging Stock?

ChargePoint Holdings, Inc. (NYSE: CHPT) is not yet profitable but, as a leading EV charging network operator trading around $18 a share, it is deserving of a fast pass. During the 2020 bull run in EV stocks, ChargePoint ran to nearly $50 before losing power with the rest of the industry. Having more than doubled from its May 2022 low, however, the stock appears to be re-charging—and closing in on its first three-month win streak since ‘de-SPACing’. 

Earlier this month, ChargePoint announced a three-way collaboration with Volvo Car USA and Starbucks to install EV charging stations at as many as 15 Starbucks locations. The stations will be placed roughly 100 miles apart along a 1,350 mile route between Denver and Starbucks’ hometown of Seattle. They’ll be open to the public but Volvo drivers will be able to gain access for free or at a reduced rate. While not a huge expansion, it is another step in ChargePoint’s plan to establish a nationwide network of EV chargers. 

There are already hundreds of thousands of locations across North America and Europe where ChargePoint account holders can ‘refuel.’ Some 113 million charging sessions have been completed to date. Aside from the opportunity to expand its network globally, ChargePoint’s cloud-based subscription model may be its most attractive investment attribute. The company offers a range of hardware and software that supports EV charging at home, the office, parking decks, retail outlets, and hotels. This translates to a diverse set of recurring revenue streams derived from both individuals and businesses.

As consumers are warming up to the inevitability of EV charging, Wall Street firms are getting more comfortable with the EV charging space—and ChargePoint in particular. The last five opinions issued on the stock have been bullish with price targets as high as $26. In addition to the growing recurring subscription base, analysts are finding favor with the company’s growing fleet business, capital-light model, and leading North American market share in Level 2 charging.

ChargePoint is getting set to report Q2 results on August 30th. A net loss similar to last quarter is expected, but more importantly, investors will be looking for a top line performance similar to last quarter's electrifying 102% growth.