For investors seeking new plays on the electric vehicle (EV) market, Volvo (OTCMKTS:VLVLY) could be one of the best stocks to buy. This Swedish automaker is known for producing reliable vehicles that often run for years on end. Now, Volvo is shifting its focus to EVs as well — and for good reason. Demand is surging. Not only is the company doubling down on production of its popular, affordable EX30 SUV, but it’s expanding its EV lineup as well. This momentum is sending VLVLY stock up as conditions slowly shift toward a market that’s ideal for a name like Volvo.
Does this mean that investors should place this automaker near the top of their lists of EV stocks to watch for 2024? Let’s take a closer look.
What’s Happening With VLVLY Stock?
Granted, VLVLY stock hasn’t risen by too much today. Shares closed the day up by just 0.22%. But that shouldn’t distract investors from the bigger picture at play. Today brought two positive announcements from Volvo that make one thing clear: This company is poised to make significant progress in the coming year if current EV market trends persist. This also means that VLVLY’s current share price may make for a key buying opportunity.
Before markets opened this morning, news broke that Volvo would be amping up production of its popular and more affordable EX30 SUV because of positive demand predictions. But not much later, an even more important headline announced that the company also planned on releasing three new EV models. Additionally, Volvo expects to see the current momentum for its EVs continue.
This comes at a pivotal time for Volvo. Other automakers such as Ford (NYSE:F) and General Motors (NYSE:GM) have been scaling back EV production as slumping demand for EVs poses a questionable outlook for the industry. But Volvo clearly sees better days ahead. The firm also has reason to, with recent third-quarter results showing growth across most major areas. This all suggests that Volvo is well-positioned to keep pace with demand. As Electrek reports:
“Volvo says that the decision to build the EX30 in Belgium as well as China boosts production capacity for the expected demand in Europe and for global export. It adds production flexibility for what the company expects to be one of its most popular models in coming years.”
All things considered, the company appears to be well on track to achieving its goal of making all of its vehicles electric by the end of the decade.
The Road Ahead
The spike in demand that Volvo is seeing illustrates something important. The market is increasingly shifting toward more affordable EVs and moving away from pricier models. This is good news for automakers producing reasonably priced EVs that appeal to families and the large base of consumers with more limited means. That puts Volvo in a prime position to grow in 2024.
On the date of publication, Samuel O’Brient did not hold (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.