EV industry stocks should be on your watchlist for 2024. If you are interested in the idea of a cleaner future while also growing your portfolio, these companies can help you achieve both goals.
Although electric vehicles may have been overshadowed in the past year by artificial intelligence and other sectors, I still think there’s plenty of room for these EV industry stocks to continue to deliver strong gains to investors. It’s also important to remember that we’re just at the very beginning of seeing their widespread adoption, so I think there’s only a clear upside from here.
Here are the best EV industry stocks for investors to consider for February.
Ford (F)
Ford (NYSE:F) is a traditional automaker that is aggressively moving into the EV space. Although the company has made a slow and bumpy start into its entry into the market, it appears committed to making its presence felt in the market.
Its commitment to the EV industry is evident in its investments in the EV segment. This includes $50 billion and aims for an 8% operating margin by the end of 2026 despite current negative margins. Also, in the same year, it expects a 2 million EV run rate despite facing a decrease in sales for models like the Mustang Mach-E and F-150 Lightning last year.
In the near term, the company is aiming for 600,000 EVs per year, a delay from the initial 2023 target, but it’s still good news for investors who aim to hold Ford for the long term.
Trading at just 7.94 times earnings, Ford is a buy considering its efforts to diversify into EVs and its solid commitment to the strategy.
General Motors (GM)
Like Ford, General Motors (NYSE:GM) is investing in electric vehicles and is making a gradual pivot towards offering an all-electric range for consumers to enjoy.
I feel that GM’s trajectory is slightly more bullish than Ford’s. This is because GM anticipates its EVs will be profitable by 2025, with federal subsidies helping substantially in the process. Initiatives such as Tesla’s (NASDAQ:TSLA) Supercharger network will do wonders for smaller EV makers, too. Plans are in place that would let other manufacturers use the network so more consumers can charge their vehicles.
GM is also committed to making its pivot success to EVs. The profits from combustion engine models are funding GM’s transition to electric, with $11 billion to $13 billion in annual capital spending through 2025 planned.
Wall Street appears bullish on GM’s outlook for the short term. There’s a consensus upside of 29.35% for its stock price, to be reached within the next twelve months. It also has a “Buy” rating.
Li Auto (LI)
Li Auto (NASDAQ:LI) is a Chinese electric vehicle manufacturer that specializes in SUVs.
LI stock is one of my favorite picks for investors who want to diversify away from non-U.S.-made EVs. The reason is that it has a huge presence in the Asian market, which is where I think a substantial amount of growth will come from in the future.
The company also has some huge plans. It’s preparing to nearly triple its electric model lineup to 11 by 2025, up from four current models. This strategy also goes hand in hand with targeting mid and high-range models that are above $29,100 in value.
Meanwhile, in China, LI stock is in the process of completing 300 high-speed supercharging stations, which should be done by the end of the year. There could be over 3,000 stations built by 2025.
Wall Street is expecting a huge surge in LI’s revenues and EPS growth this year. Earnings are expected to climb by 91.30% in the coming year. This development would bring EPS up from $0.92 to $1.76 per share.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
