While many companies in the electric vehicle (EV) space struggled significantly in 2023, there’s no denying that the overall market has its strong points. Of course, sector leader Tesla (NASDAQ:TSLA) has watched shares slip nearly 30% over the past six months despite the highly anticipated release of the Cybertruck. Things have been even worse for smaller EV startups like Rivian (NASDAQ:RIVN) and Lucid Group (NASDAQ:LCID) over the same period. However, the overall market still saw noticeable growth in 2023, even as EV stocks battled unfriendly market conditions. As CleanTechnica reports:
“In 2023, U.S. EV sales saw a notable increase, reaching 1.6 million units, up from the 1.1 million sold in 2022. This uptrend is projected to persist into 2024, with sales forecasted to hit 1.9 million units, representing a significant 13% of the new-car market. Interestingly, this growth trajectory seems resilient, even in the face of stricter federal tax-credit rules.”
When it comes to Tesla specifically, some may speculate that the EV firm’s troubles are due to problems with Elon Musk’s leadership. Indeed, the serial CEO has been focused on far more than the Cybertruck lately. For example, Musk and his team at X (formerly Twitter) recently rolled out Grok AI, a new “anti-woke” chatbot.
Naturally, though, having reported on recommendations for the best EV stocks to buy from bots like ChatGPT, I decided to ask Grok about its picks for the sector. Here are the chatbot’s suggestions for EV stocks to buy besides Tesla.
EV Stocks to Buy: Nio (NIO)
The first of Grok’s top picks for EV stocks is one of the sector’s worst performers right now. Nio (NYSE:NIO) is down more than 40% for the past one year and hasn’t given investors much cause for optimism. Most recently, the Chinese EV maker fell on news of disappointing economic growth in China. As InvestorPlace contributor Dana Blankenhorn reports, this means that a struggling company like Nio may not see any real profits over the coming year.
Grok states that Nio features a line of “high-performance electric SUVs and sedans,” noting that the company is also “working on autonomous driving technology.” While all that may be true, it hasn’t done much to boost the price of NIO stock recently. That said, Microsoft’s (NASDAQ:MSFT) CoPilot chatbot has also flagged NIO as a stock with significant long-term growth potential.
Rivian Automotive (RIVN)
This electric truck and SUV startup is also one of Grok’s top picks for EV stocks. Like others in the space, Rivian stock has struggled over the past year, most recently taking a hit when it fell short of fourth-quarter delivery estimates. However, RIVN stock still seems like a better bet than Nio. Grok notes that the company boasts a “strong focus on sustainability” and has “garnered significant investments” from companies like Amazon (NASDAQ:AMZN) and Ford (NYSE:F). Both of these things true, although Ford has trimmed most of its Rivian stake by now. Still, there are reasons to bet on RIVN stock. As InvestorPlace contributor Muslim Farooque reports:
“For investors, Rivian’s trajectory for 2024 appears mighty promising. The combination of favorable trade circumstances, strategic expansion, and product innovation positions the firm as a compelling investment choice, with the potential for substantial long-term growth and market impact.”
Grok’s information may be out of date in some cases, which can be expected from an early-stage chatbot. In the case of Rivian, though, the bot is right to rank RIVN among EV stocks to buy.
EV Stocks: XPeng (XPEV)
Grok seems to be bullish on Chinese EV stocks, given its third pick. Specifically, Grok also recommends XPeng (NYSE:XPEV), one of Nio’s rivals that has performed slightly better over the past six months. The chatbot’s description of XPeng is similar to its take on Nio. As it states, “XPeng offers a range of electric vehicles with advanced autonomous driving technology. They have a strong focus on innovation and are expanding their product lineup to cater to various segments of the market.”
One thing Grok doesn’t specifically mention is XPeng’s work in the flying car space. That’s an actual factor that sets the company apart and could give XPEV stock a significant edge in 2024. XPeng is working hard to secure a piece of this potentially lucrative market and seems well-positioned to keep advancing toward the front of the flying car race.
As is often the case with chatbots, Grok’s information isn’t wrong but also not particularly current.
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.
