SPECIAL REPORT The Top 7 Stocks for 2024

The 3 Best EV Stocks to Buy in February 2024

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  • These EV stocks have impressive prospects and are trading at prices that are great bargains. 
  • Toyota (TM): Toyota is starting this year by ramping up production and significant investments in EV production.
  • Ford (F): Though Ford struggled in January of this year with EV sales, it has shown surging profit and potential in their hybrid sales.
  • General Motors (GM): GM has recently deployed large-scale buybacks and secured promising talent in its EV department staffing, creating a tempting buy opportunity.
Best EV Stocks to Buy - The 3 Best EV Stocks to Buy in February 2024

Source: Sopotnicki / Shutterstock.com

Auto stocks, particularly EV-based sales, have faced hardships industry-wide. Though EVs are more popular than ever before, profits have slowed compared to the continuous surge experienced in previous years.

However, these three stock picks are starting this year with impressive dedication and promise to their efforts in EV production. These companies are rising above the competition by adding needed diversification in many aspects of their internal operations and dedicating more and more to EV production.

We’ll detail how and where these companies put in the extra attention and funds to revive their EV sales and why now is a better time to capitalize before these stocks take off.

Toyota (TM)

Toyota motor corporation logo on dealership building
Source: josefkubes / Shutterstock.com

Toyota (NYSE:TM) is a worldwide motor vehicle industry giant and has never shied away from the fierce competition within the EV sector. Last year, Toyota faced some setbacks, losing a partnership with General Motors (NYSE:GM), but has not given up on revamping their EVs like never seen before. 

Despite setbacks, Toyota has ensured its devoted attention to EV production, announcing new EV concepts to be realized in the EU market by 2026. Toyota has made similar announcements regarding its commitment to EVs in North America.

Toyota announced that it would be beginning production of battery electric vehicles (BEVs), the three-row SUV model in particular, in Kentucky in 2025. Along with this production is a massive $1.3 billion investment in the manufacturing plant in Kentucky to accelerate the implementation of solid-state batteries.  

Solid-state batteries are said to decrease charging times and increase the range for EVs while reducing production costs. Toyota expects full implementation between 2026 and 2028, and even the promise of advancement like this saw a rise in the Toyota stock last year. 

Toyota has maintained solid net revenue and shows promising growth efforts in the EV sector. There is no better time to make a buy to capitalize on the expected price rise of this stock.

Ford (F)

2022 Ford (F stock) F-150 Lightning Lariat
Source: Ford

Ford (NYSE:F) is another company in the motor vehicle industry with a long legacy (and brand) and a will to match the times with dedication to a massive EV division. 

Ford ended up selling 72,608 EVs in 2023, 18% up from 2022 and a new record for the company.

On top of this, Ford saw a huge surge in hybrid vehicle sales in January, reaching over 40%, which shows great promise for the stock.

Ford will continue its efforts to assert itself as a top EV seller. One of the most notable changes Ford has made is the recent agreement from the end of last year with Pt Vale Indonesia and Huayou, detailing a nickel mining project in Indonesia that will boost Ford’s supply chain production of sustainable batteries to fuel their popular EV models like their F series pickups.

While Ford is slowing down the production of EVs to match demand, the limit could provide needed stability to the stock price. Accompanied by the boost in hybrid sales and continued dedication to sustainable supply chain operations, this stock could be an excellent buy for a safe return with lower volatility.

General Motors (GM)

Image of General Motors (GM) logo on corporate building with clear sky in the background.
Source: Katherine Welles / Shutterstock.com

General Motors is another big name in motor vehicles but faced some unfortunate setbacks towards the end of last year. After a United Auto Workers strike in December, the company lost operating profit for 2023 by a little over $1 billion.

In addition, the National Highway Traffic Safety Administration (NHTSA) reported an investigation it was conducting into one of GM’s hybrid models in December. However, GM has come out with a solid initiative to retake their earnings and reputation in EVs in 2024.

This initiative starts with a monumental hire of former Tesla battery development head Kurt Kelty. GM announced Mr. Kelty’s onboarding and revealed his sole purpose of utilizing GM’s available resources to bring new life to their EV division through lower-cost, profitable, quality EVs.

GM overcame these setbacks with a minimal drop in market share in Q4 of 2023 while sales remained steady. Amidst its efforts to improve its EV division, GM came out of Q4 with a 7.8% bounce and expected earnings per share of $8.50-$9.50 for the year after adjustment.

You can take advantage of the expected growth in GM’s EV division and their current settled trading price to see some great profits for the upcoming year.

On the date of publication, Joel Lim did not have (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.

Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.


Article printed from InvestorPlace Media, https://investorplace.com/2024/02/the-3-best-ev-stocks-to-buy-in-february-2024/.

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