1. Automaker stocks

Investing directly in EV manufacturers is a great way to begin your EV investment journey. With rapid technological advancements, there are many global EV manufacturers now, with some of these manufacturers focusing solely on electric car production. Meanwhile, many legacy automotive manufacturers have quickly adapted to the shift towards EV and have expanded into producing EVs too. 

However, most of these companies are invested in other segments, meaning that their performances could be affected by these non-EV businesses. Exercise care and be prepared for volatility when investing in automaker companies.

2. Component manufacturers

Investing in component manufacturers is an indirect way of investing in EVs. EV manufacturers source for materials from a number of companies in producing an EV. This includes chipmakers, lithium-ion batteries and self-driving AI platforms.

Examples of EV part suppliers include CATL, BYD, LG Energy Solution and NVIDIA. That said, they may also be exposed to other technology segments like smartphones and personal computers, which may require investors to do more research for a better understanding before investing.

3. Commodity stocks

Going even higher up the supply chain, commodity stocks are another possible investment option. Commodities such as lithium, nickel and graphite are some essential raw materials used in EV manufacturing. This is a good way of getting into the market right at the ground floor but these commodities are also susceptible to fluctuations in the volatile commodity market.

One way to mitigate the risk is to invest in EV-related exchange-traded funds (ETFs) or mutual-traded funds. These help to diversify your investment portfolio and mitigate the volatility of investing in the EV theme.