This year hasn’t been kind to the electric vehicle industry, and many are happy that the year is finally ending positively. Inflation is cooling, consumer sentiment is improving and investment in the EV industry will continue to grow. The transition towards EVs is still in an early stage, meaning the demand for EVs will continue to increase over the years. This has led to this list of top EV stocks to buy.
While consumers are unwilling to splurge on luxury EVs, and many are struggling to meet their monthly delivery goals, several EV companies have reported impressive numbers and are thriving. If you are wondering what are the EV stocks to buy right now, I have the answer. EV stocks are still a smart investment and worth your money. If you want to invest in EV stocks, here are the top EV stocks to consider.
Li Auto (LI)
One of my top EV picks and the one I have been recommending throughout 2023, Li Auto (NASDAQ:LI) is a very strong EV player. The company has impressed investors with its solid performance in 2023 and I believe it is only getting started. The company has a strategy and products that can help it expand its market share and enjoy strong revenues.
It delivered 40,422 cars in October which is much higher than the 28,626 cars delivered by industry leader Tesla (NASDAQ:TSLA). The company aims to deliver cars at the same pace throughout the fourth quarter of the year. It delivered 105,108 cars in the third quarter, and I believe the company is on track to achieve the final quarter delivery numbers.
One huge catalyst for the company is the upcoming battery-only model which will be available from February. It already has 10,000 reservations for it and plans to add another three battery-only vehicles in the second half of 2024.
LI stock has managed to thrive despite inflation and low consumer spending. Up 92% year to date, the stock is exchanging hands for $40 today and is ready to skyrocket in the coming year. It has a massive China market, and the growing delivery numbers are proof that people love Li vehicles.
While the company does not have any overseas expansion plans, it plans to double the size of the research and development team for autonomous driving. It is selling cars as quickly as they can be produced, and in a competitive market like today, this is a huge feat.
Rising sales in the EV segment will benefit Li Auto, and if you haven’t bought LI stock yet, now is the time to make your move. It looks cheap to me and could generate significant returns for you in the next two years.
Rivian Automotive (NASDAQ:RIVN) went public in 2021, and the stock went from the highs of $179 to $17 now. While investors may not be happy to see this drop and would be wary of buying the stock, there are several reasons to continue to remain positive about it. The CEO is now upping the production targets and forecasts for the year. It aims to make 52,000 cars in the year, up from the previous target of 50,000 cars.
When it comes to financials, we see an improvement here as well. The company posted a revenue of $1.12 billion beating analyst estimates, and reported a smaller loss in the quarter. The loss came in at $31,595 per car sold, lower than the loss of $67,329 per car in the previous quarter. Many had written off Rivian when it dropped to an all-time low. However, it is down but not out.
One big reason to bet on Rivian stock is the end of its exclusivity contract with Amazon (NASDAQ:AMZN). With the end of the contract, the company can now sell its commercial electric vans to all the other parties and will not be limited to Amazon any longer. This will benefit the company as it will be able to expand its market share and increase revenue.
Yes, the company isn’t profitable yet, and the stock price reflects that. Once the company manages to increase market share and report a profit, we could see the stock moving upward. The company has decent financials and a strong positive outlook, making RIVN stock an ideal addition to your portfolio.
One stock that can be a multi-bagger is Ferrari (NASDAQ:RACE). The luxury automaker has entered the EV race and is here to grab the market share. Whenever you think of EV stocks, Ferrari might not be the first one to come to mind, but it is one that cannot be ignored. The company is known for premium cars and has a limited clientele. It caters to the ultra-rich and produces only 8,500 cars each year.
Ferrari has strong financials, and its numbers are proof that it is firing on all cylinders. The company saw a 24% rise in revenue and a 46% rise in net profits. It also has an impressive backlog which helps the company maintain steady financials.
The company is working on building the first fully electric supercar which could debut in 2025. While it is only dipping its toes into the EV market, it is worth looking out for RACE stock.
Exchanging hands for $370 today, the stock is up 70% year to date and is hitting a new 52-week high. Yes, the stock isn’t cheap, but it is worth buying and holding for the long-term. Several analysts have raised the price target on this stock after the earnings.
Ferrari has low risk and generates steady rewards for investors. It is one stock you will never regret buying.
On the date of publication, Vandita Jadeja 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.