Goldman Sachs (NYSE:GS) Research predicts electric vehicle (EV) sales will eventually increase due to declining battery prices, despite current slowdowns in EV investment. Further, there is a projected surge in EV market share to 50% in the U.S. and 68% in the EU by 2030. This backdrop has led to this list of EV stocks hoping for falling battery prices.
The following EV stocks are the best options in the market right now to take advantage of the projected surge in EV sales. The opportunity also extends beyond just vehicles to a broad mix of companies, such as charging networks and battery management software.
Missing this potential tailwind could lead to significant opportunity costs for investors later. Here are three stocks to consider adding to your portfolio today.
Lucid (LCID)
Lucid (NASDAQ:LCID) is an American EV technology company developing electric vehicles and powertrains.
Revenue is expected to increase 33.17% to $792.71 million, with a more ambitious projection for 2025, anticipating a revenue jump to $2.03 billion.
However 2023, LCID experienced a challenging financial year, with revenue reaching $595.27 million, marking a slight decline of 2.12% from the previous year’s $608.18 million. The company faced significant losses totaling -$2.83 billion, a substantial increase of 116.8% compared to losses in 2022.
However, this negative sentiment has only improved LCID’s valuation, as it trades for just under $3 at the time of writing. It will also do wonders for its margins, making it a great option for investors with a high risk tolerance.
If one wants an EV penny stock to take advantage of cheaper vehicles, LCID could be one’s ticket.
Li Auto (LI)
Li Auto (NASDAQ:LI) is a Chinese automaker specializing in premium electric SUVs.
In 2024, LI aims to hit ambitious sales targets, notably planning to sell 800,000 vehicles. The key to this strategy is the introduction of more competitively priced models like the Li L6, which aims to penetrate the market segment below RMB 300,000.
This segment is twice as large and highly competitive, challenging even established players like Tesla (NASDAQ:TSLA). LI is expanding its direct sales store network from 467 to 800 by the end of 2024 to achieve these targets.
LI stock is uniquely positioned to take advantage of cheaper EVs as it’s central to its undercutting pricing strategy. Companies like TLSA are in a vulnerable position if vehicles, on the whole, become cheaper, which makes them less of an exclusive option, as evidenced by the new entrants to the market that are disrupting its market share.
XPeng (XPEV)
XPeng (NYSE:XPEV), another significant name in China’s EV market, manufactures smart electric vehicles. Their offerings include SUVs, sports sedans, and more. XPEV also has another favorable pricing strategy that could pay off if EVs decline in their price tags across the board.
XPEV has ambitious plans for 2024, aiming to impact the smart electric vehicle (EV) market significantly. The CEO intended to launch around 30 new and refreshed EV models by 2027, targeting a price range between $14,000 and $56,000. This move should bridge existing price gaps and cater to a wider range of consumers in China.
In 2023, XPEV reported delivering 141,601 units, marking a 17% increase year-over-year. The company delivered 101,445 vehicles from January to October, a slight decrease from the previous year. However, with a record 20,002 vehicles delivered in October alone, XPEV is on track to achieve its forecast of doubling its delivery numbers in 2024, supported by introducing new models like the X9 MPV and a large new sedan.
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.
