Magna (MG) and LEV: 2 TSX EV stocks to buy and hold forever

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Magna (MG) and LEV: 2 TSX EV stocks to buy and hold forever

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 Magna (MG) and LEV: 2 TSX EV stocks to buy and hold forever
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Highlights

  • Canadians are increasingly talking about the electrification of vehicles and how it can help the economy in the green transition .
  • Magna International (TSX: MG) and Lion Electric (TSX: LEV) could see some traction with growing emphasis on the electrification of vehicles.
  • Magna International's yearly profit nearly doubled to US$ 1.51 billion in 2021.

Canadians are increasingly talking about the electrification of vehicles and how it can help the economy in the green transition. This, in turn, can spur further interest in the producers and suppliers of electric vehicles (EVs), like Magna International Inc (TSX: MG) and Lion Electric Company (TSX: LEV).

On Monday, April 11, Canada’s Prime Minister Justin Trudeau visited Victoria and emphasized on the federal spending sliced out in Budget 2022 for EV infrastructure, including the availability of clean vehicles and an expanded national network of charging stations.

Let us look at these two TSX stocks.

Magna International Inc (TSX: MG)

Magna International posted sales of US$ 9.11 billion in Q4 FY2021 compared to US$ 10.56 billion in the previous year's quarter. Its net profit decreased to US$ 464 million in the latest quarter.

Meanwhile, its annual sales increased from US$ 32.64 in 2020 to US$ 36.24 billion in 2021, and its yearly profit nearly doubled to US$ 1.51 billion in 2021.

MG stock increased by over four per cent in the past one month.

 Magna International Inc (TSX: MG)’s FY2021 results

Also read: GPV and VMC: 2 TSXV EV stocks to see as Canada invests in Honda plant

Lion Electric Company (TSX: LEV)

Lion Electric announced the launch a new lightweight, aerodynamic electric truck on April 11. These vehicles, the company said, are primarily meant for medium and heavy-duty last-mile delivery, designed by Transit and developed under an upfitter partnership model.

LEV stock plummeted by almost 57 per cent in a year.

Bottomline

EV makers like Magna International and Lion Electric could see increased EV demand and production growth, with sustainability and zero-emission becoming primary goals for the economy worldwide. However, investors should analyze the market environment and all the factors that can influence the EV market.

Also read: Canada Budget 2022 earmarks $12.5B more for climate: 2 TSX clean stocks

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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