Auto Industry Vet Provides Insights On Which EV Stocks Will Provide The Greatest Returns

CNBC's Phil LeBeau broke down which electric vehicle stocks could offer the most upside potential based on comments from Guggenheim's John Casesa, Monday on CNBC's "Squawk On The Street."

The explosion of new EV models coming to market over the next few years will be a catalyst for EV stocks. The best way to play it is by focusing on EV startups as opposed to legacy automakers, according to Casesa.

There is more upside in picking the winners like Tesla Inc (NASDAQ: TSLA) than there has been since the 1920s, Casesa told CNBC. 

Related Link: Tesla Bull Vs. Tesla Bear: Tesla AI Day Key Takeaways From Analysts

The best way to play the EV space is by investing in pure EV tech firms, followed by EV automakers and traditional parts suppliers, according to research from Casesa. 

Investors will see the lowest returns from legacy automakers because "they've got one foot in the present and then [they're] trying to put another foot into the future," LeBeau reported based on Casesa's research. 

TSLA Price Action: Tesla has traded as high as $900.40 and as low as $329.88 over a 52-week period.

At last check Monday, the stock was up 4.01% at $707.46.

Photo: Courtesy of Tesla.