The electric vehicle market was perhaps the sector that got beat up the most in the past year, resulting in disappointing performance for the best EV growth stocks. Overvaluation, supply chain issues, macroeconomic troubles, and fierce competition weigh down company valuations. However, with several top EV stocks now boasting attractive valuations presenting promising EV growth opportunities, it’s an ideal time for investors to go all-in on the burgeoning space.
Amid these shifting dynamics, the White House recently proposed the most stringent pollution standards for automobiles to date in accelerating EV adoption. With favorable policies globally, there’s plenty of room for EV growth in the next 10 to 15 years.
Quality EV stocks are likely to generate impressive returns over the next few years, and a swift rally from oversold levels is likely. Therefore, as we explore the best EV growth stocks in the article, many of these companies have the potential to surge by double-digit margins.
| TSLA | Tesla | $207.52 |
| BYDDF | BYD Co. | $30.80 |
| CHPT | ChargePoint | $9.75 |
Tesla (TSLA)
Tesla (NASDAQ:TSLA) reigns supreme as the leading EV stock, demonstrating tremendous dominance in the industry.
Tesla’s growth trajectory remains strong. It recently announced plans to manufacture 1.8 million to 2 million vehicles this year, reaffirming its spot at the forefront of EV production.
Several exciting catalysts lie ahead for Tesla, including the much-anticipated launch of the Cybertruck and the opening of its new manufacturing facility in Mexico.
Smart money investors continue to scoop up the stock in droves, with hedge funds adding more than 780,000 Tesla shares in the last quarter alone. Analysts at Tipranks anticipate at least a 19% upside from current price levels.
BYD Co. (BYDDF)
BYD Co. (OTCMKTS:BYDDF) has emerged as a powerhouse in the Chinese EV market, establishing its presence as a global EV manufacturer, a remarkable accomplishment.
Its achievement has attracted investments from investing heavyweights such as Warren Buffett, fueling the company’s monstrous success.
Berkshire Hathaway’s (NYSE:BRK-B) vice chairperson, Charlie Munger, even hailed the investment in BYD as their best to date. He remarked how BYD’s progress in China far outpaces Tesla’s, making the comparison almost comical.
The firm recently reported its first quarter results, where earnings rose five-fold to $596.5 million. It sold a whopping 552,076 vehicles in the first quarter, a 92.8 bump on a year-over-year basis.
Analysts predict a 45% increase in revenue growth surge this year, with excitement building among investors looking to capitalize on BYD’s thriving trajectory effectively.
ChargePoint (CHPT)
ChargePoint (NYSE:CHPT) is a pioneer in the EV charging sphere and has effectively carved out a strong global presence across 14 countries. As the world embraces EVs at a breathtaking pace, they perfectly positioned their firm to ride the global adoption wave.
The company remains in hyper-growth mode despite macro headwinds weighing down its business. According to CHPT, it struts an impressive client roster that includes “80% of Fortune 50 companies”.
It boasts an enviable track record of double-digit top-line growth in recent years, and based on its stellar performance, the company is expected to break even within the next three years.
Year-over-year sales growth for the firm stands at an astounding 94%, with analysts expecting revenues to skyrocket from $468 million last year to $703.5 million this year, potentially reaching a mind-boggling $1.1 billion by 2024.
Based on its impressive growth outlook, Tipranks analysts forecast an 80% upside from current price levels.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
