This quarter has brought reports of declining demand for electric vehicles (EVs). Indeed, the combination of macroeconomic trends like rising interest rates and shifting consumer sentiment has created an unfavorable landscape, pushing EV prices down as a result. For luxury EV producers who deal in highly priced vehicles, that’s not the best news. But there’s new reason to believe that things haven’t been all bad for the EV industry as a whole.
According to data from Experian, battery electric vehicle (BEV) registrations have grown steadily for most of this year. However, while EV sales from companies that aren’t Tesla (NASDAQ:TSLA) have “almost doubled year-over-year,” the same can’t be said for the sector leader. In fact, Tesla has reported only minimal sales growth in comparison. This suggests that investors should be focused on EV stocks other than TSLA as the market prepares to enter a new year. As InsideEVs reports:
“According to the registration data […] the total number of battery electric car (BEV) registrations during the first ten months of 2023 amounted to 955,509, which is about 58% more than a year ago and about 7.4% of the total market (up from 5.6% at this same time in 2022).”
InsideEVs also provides the following BEV registration statistics for the first 10 months of 2023 for both Tesla and its competitors. According to the outlet, BEV registrations from January 2023 through October 2023 are as follows: “Tesla (56.3% BEVs): 537,622 (up 37%)” and “Non-Tesla (43.7% BEVs): 417,887 (up 96%).”
Those numbers make it clear that consumer sentiment may very well be shifting away from Tesla. With that said, here are three EV stocks to buy that look primed for more momentum in 2024.
EV Stocks: Hyundai Motors (HYMTF)
This South Korean auto leader isn’t known for flashy vehicles, but U.S. buyers don’t seem to care. Hyundai (OTCMKTS:HYMTF) boasts 45,621 BEV reservations from January through October, a gain of 97%. While HYMTF stock has been volatile over the past six months, shares remain in the green as well. Hyundai stock’s year-to-date (YTD) growth is also encouraging, up by more than 40%. The fact that a company known for producing somewhat boring yet reliable mid-priced cars has seen this type of success from its EV division bodes well for the future.
Additionally, Hyundai is fully embracing artificial intelligence (AI) as a means to support production. Recently, the company announced a new production hub in Singapore which will be powered by AI, featuring custom EVs built by robots. This could be an important preview of the future of auto production. More importantly, it shows that Hyundai can offer investors exposure to multiple lucrative market trends.
Rivian (RIVN)
Despite all of the heat it has taken over the past year, Rivian (NASDAQ:RIVN) is already mounting a clear comeback. This electric truck startup surged this week on news of a partnership with AT&T (NYSE:T), but investors have other reasons to be happy as well. Rivian’s BEV registrations for January through October tripled to 35,751. What’s more, while the Tesla Cybertruck is making headlines right now, RIVN stock hasn’t slowed down. As of this writing, shares are up 30% for the month and look poised to keep rising.
For investors who are looking to capitalize on Cybertruck momentum but aren’t sold on the appeal of the strange, futuristic vehicle itself, RIVN stock offers a tempting alternative. The company’s recent registration growth also makes it clear that its trucks are garnering a solid fan base. As the EV market rebounds in the coming year, Rivian should be in an excellent position to continue expanding its market share and challenging Tesla.
EV Stocks to Buy: BMW (OTCMKTS:BMWYY)
While the EV market has struggled this year, BMW (OTCMKTS:BMWYY) has been making slow-and-steady progress. Of course, this hasn’t been a great year to build sleek, trendy luxury vehicles. But BMW has proven that it has the brand power to keep selling its expensive cars, even amid a struggling economy.
Back in October, I reported for InvestorPlace that BMW had the power to be one of the best EV stocks for the year ahead. As of now, that prediction is holding up. BMW reported 34,806 BEV registrations for January through October according to InsideEVs, an increase of 308%.
Part of this success may stem from the fact that BMW has opted to switch to Tesla’s North American Charging Standard (NACS) for its EVs. The ability to more easily charge in North America will be likely even more incentive for drivers to buy a BMW EV in 2024. But BMW has also announced plans to begin building electric Mini Coopers in the United Kingdom. This bet should also pay off as the beloved automaker continues to expand its global reach.
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.
