7 Best EV Stocks to Buy in 2024
Electric vehicle sales continue to gain momentum worldwide, increasing by 31% on an annual basis with 13.6 million plug-in hybrids and battery-only EVs sold in 2023, according to market research firm Rho Motion. That’s almost 1 out of every 6 cars worldwide, proving that this is not just a niche market.
As with many fast-moving technological developments, there are some early leaders and some traditional players that are successfully adapting. And of course, there are some upstarts out there that investors may not even be aware of yet, as they are in the very early stages.
The following list of EV stocks represents a good mix of these categories, with dedicated EV plays and a few traditional firms with a foot in both the old world of combustion engines and battery technology:
Tesla Inc. (TSLA)
In 2023, EV leader Tesla put up strong numbers yet again with vehicle deliveries growing by 38% over the prior year to 1.81 million units. That’s a sizable chunk of the market and the kind of dominance that many investors have come to expect from this iconic firm. TSLA is not standing still, either, with rumors that it has been talking with suppliers about a mass market vehicle launch around mid-2025 described by some as a compact crossover with a lower price point. That could tighten the grip of Tesla as it covers every price point of the EV market – and really ups the pressure on its competition.
BYD Co. Ltd. (OTC: BYDDY)
While Tesla is the most popular name for many in the U.S., China’s BYD is significantly larger from a production standpoint, with roughly 3 million EV and hybrid vehicles made in 2023, beating Tesla’s production for a second straight year. Because it produces plug-in hybrids and battery-only models, it gains diversity in its products as well as scale. Given the importance of China as a top marketplace, the homegrown appeal of BYD – and its close relationships with policymakers in Beijing – gives it a unique advantage over manufacturers in the U.S. and Europe.
Rivian Automotive Inc. (RIVN)
While not yet profitable, electric truck and SUV brand Rivian is growing fast. In the fourth quarter, the company produced 17,541 electric vehicles – 75% more than in the same quarter of 2022. That’s not a ton of vehicles, but for the full year, Rivian’s R1S model managed to outsell both the Model X SUV from Tesla and the electric Ford F-150 Lightning pickup. And looking ahead, the company has modest growth in the currently rocky environment for EV sales, but analysts predict a 56% revenue growth rate in fiscal 2025. This is a more aggressive stock than the more established EV players on this list, but if you want to get in on the ground floor, this is an EV startup to watch.
General Motors Co. (GM)
While this old-school automaker may not seem like a relevant EV stock, keep in mind that in 2023 it sold about 62,000 of its Chevy Bolt mass market plug-ins. That’s good enough for the No. 3 best-selling EV in the U.S. last year, behind only the Tesla Model Y and Model 3. The margins are lower than the big ticket vehicles out there, as the Bolt starts at around $30,000, but there’s a lot to be said about an incumbent brand with built-up manufacturing capacity – particularly in the arena of mass-market cars that are accessible to the average American. GM clearly has other models and business lines, but as a long-term bet on the future of EVs it definitely has a place on this list.
Albemarle Corp. (ALB)
Smaller than the other stocks on this list at about $14 billion in market value, ALB is a lesser-known play on the EV revolution because it’s not a manufacturer. Instead, it is among the largest and most established lithium producers in the world. Lithium prices were weak in 2023, and ALB stock has been volatile recently as a result, but the company’s scale is unrivaled on the global stage. On the heels of a massive production expansion plan in South Carolina, ALB says it has the annual capacity to produce 225,000 metric tons of lithium – and the company says this output should roughly triple by 2030. If you want to forgo picking the winning EV nameplate and instead play lithium, ALB is worth a look.
Panasonic Holdings Corp. (OTC: PCRFY)
There’s a similar story with Japanese industrial conglomerate Panasonic, which is one of the biggest provider of EV batteries in the world. That includes its relationship with EV leader Tesla as its primary battery supplier. While there are also big lithium battery firms in China, there is increasing attention on supply chain diversification that make Panasonic an attractive partner for U.S. and European automakers. About 12% of the group’s sales come from EV batteries, but that portion is expected to grow. With demand outstripping supply and production of EV components, this big footprint for Panasonic makes it an attractive partner for automakers in the years ahead.
Ganfeng Lithium Group Co. Ltd. (OTC: GNENF)
First things first: Chinese stock Ganfeng trades over the counter on thin volume, so it can be a risky and volatile investment. But, it is one of the few China-based options for folks who want to take the approach of investing in lithium and batteries instead of EV manufacturers. It is modest in size, with about $10 billion in market value, but it continues to invest heavily in growth. That includes about $350 million earmarked for a new lithium battery project in Xiangyang, China. If you want an aggressive play on EV growth, then Ganfeng could be a way to look beyond the U.S. and get direct exposure to the potential upside of China in the years to come.
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