The growing number of electric vehicle makers is proof of the rising demand. For a lot of automakers, it is the time to adapt or perish. Some of the biggest names in the industry have embraced the EV boom and are ready to supercharge their growth with new model launches.
There is no denying the fact that EVs will hold a large market share in the coming years, and their demand will lead to several new automakers entering the industry. However, when it comes to investing, it is important to look at the stability and growth potential of the EV maker.
You can make the most of the EV growth story by investing in these EV stocks. These are the best EV stocks to buy and hold forever if you want to take home big gains.
Tesla (TSLA)
One of the best EV stocks to own today, Tesla (NASDAQ:TSLA) has a growth story like no other. A stalwart in the industry, this EV company has introduced the masses with technology and features that one can only dream of. It has a market cap of about $800 billion and I believe it could be much higher in the coming years. It is one of the top EV stocks for wealth building.
Growing demand for EVs will drive its success. The company is well-positioned as a leading manufacturer of lithium-ion batteries in the industry, giving it an edge over competitors. One big reason to bet on Tesla is Elon Musk. With a leader like him, there is going to be a technological advantage that will help strengthen the position of the company in the market. He believes in constant innovation and is always on the lookout for ways to reduce costs, which has contributed to the success of the company to date. TSLA stock is trading at $260 today, and it is up 140% year to date and 37% in the past month.
In the recent quarter, Tesla reported strong profitability with an operating margin of 11.4%, and an operating income of $2.7 billion. The company’s net income was $2.5 billion. It reported 422,875 deliveries for the first quarter of 2023 and the recent price cuts boosted the revenue amid a market turmoil.
TSLA is one of the long-term EV stocks to buy and hold forever because, with a leader like Musk, there is a high possibility to take the business to new heights.
BYD Company (BYDDY)
Next on the list of the best EV stocks to buy is BYD (OTCMKTS:BYDDY). A Tesla competitor in every manner, this leading EV maker has a solid market in China. It has outpaced Tesla in terms of deliveries and is steadily growing its market share. The company delivered 552,076 new energy vehicles in the first quarter, higher than Tesla.
Besides the EV market, it is also the second-largest EV battery manufacturer in the world. With the growing adoption of EVs globally, the demand for batteries will also be on the rise. To meet the growing demand, BYD will invest $1.2 billion to manufacture lithium iron phosphate Blade batteries at its factory in China.
The company aims to increase the production of battery-electric commercial vehicles, adding another stream of revenue. It has recently launched a new brand, Fang Cheng Bao, that will produce off-road and SUVs.
In the recent quarter, BYD impressed investors with strong financials. Its net profit was up 411% from a year ago and it now plans to sell 4 million plug-in EVs this year. Considering the way this company is growing, achieving this ambitious goal is possible. BYD also has a strong global presence, with the EV maker launching five new models in France very soon.
Considering the potential of the company, BYD stock looks undervalued to me. It is trading at $68 today and is up 34% year to date. The stock has generated over 450% returns over the past five years. This is nothing but impressive. BYDDY is one of the top millionaire-maker EV stocks which deserves to be a part of your portfolio.
Ferrari (RACE)
Ferrari (NYSE:RACE) is all about luxury and performance. It has captured a segment with its supercars and while automakers are looking to get into the EV market, Ferrari is here, taking its own time to launch its EV.
The company saw shipments grow by 10% in the first quarter and it also released a new high-performance Roma Spider. The earnings hit $1.43 billion and were up 20% year over year. Despite inflation and market turmoil, the company had an exceptional 2022 which paved the way for an even better 2023.
RACE stock is trading at $308 today at the 52-week high but this is one stock that will certainly hit new highs in the coming years. People are ready to pay for a Ferrari and the company’s order backlog is proof. This means it will have a steady source of revenue flowing in over the next few years.
This is one of the high potential EV stocks to own. Its first EV will be ready in 2025 but the company is in no hurry. It expects the sales of fully electric and hybrid models to make up 40% of the total sales by 2030. It plans to launch 15 new models starting this year to 2026 to set the stage for the brand to grow into an EV producer.
Investing in RACE stock now is a good time to make the most of the upside as Ferrari continues to grow. It is also one company that can withstand any market turmoil.
On the date of publication, Vandita Jadeja 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.
