Hop In! 3 White-Hot EV Stocks Ready to Fire On All Cylinders


  • This year, we could see a real bifurcation build among EV stock winners and losers. These are the EV stocks to buy.
  • Li Auto (LI): Wall Street continues to back this stock with a firm buy rating right now.
  • BYD (BYDDF): This could be the best EV stock in the world, based on its existing metrics.
  • Polestar Automotive (PSNY): One of the most stable Europe-focused EV stocks globally.
EV stocks to buy - Hop In! 3 White-Hot EV Stocks Ready to Fire On All Cylinders

Source: Sergii Chernov / Shutterstock.com

The EV sector is becoming increasingly bifurcated. This sector has winners and losers, and the difference between both groups only seems to be growing. Tesla (NASDAQ:TSLA) has long been the American champion in the world of EV stocks to buy. However, one could certainly make the argument that there are other global players with better growth prospects (and margin outlooks) moving forward.

Indeed, this space is increasingly difficult to assess and one in which tomorrow’s winners may be yesterday’s losers. Here’s why it’s worth focusing on these three EV stocks to buy right now.

Li Auto (LI)

Li Auto logo and store in downtown Lujiazui. Li Auto Also known as Li Xiang, is a Chinese electric vehicle manufacturer. Business and finance concept photo.
Source: Andy Feng / Shutterstock.com

Li Auto (NASDAQ:LI) remains among the top Chinese EV makers globally. Its stock price has also been on a tear, with LI stock surging more than 70% over the past year, vastly outpacing its rivals.

Much of this has to do with the company’s recent results. If we look at December’s 50,353 EV deliveries, you’ll notice quite the difference with Li’s February numbers, which came in at only 20,952. This massive decline concerns the Chinese New Year (no need to ring the alarm bells yet). This month, the company plans to supply 50,000 units. Next quarter, revenue is expected to grow by 66.3% to &1.3% year-over-year. (So ignore all those negative headlines you’re seeing).

Additionally, once March 11 rolls in, the Chinese EV manufacturer will begin shipping its first BEV, the Li Mega MPV, all the way from its Beijing plant. The Li Mega has garnered tremendous attention as the future car for Li Auto. We’ll have to see how this product rolls out, but by all accounts, the company’s outlook remains solid for those looking to take a bite out of the Chinese EV market.


A close-up view of the power supply plugged into a vehicle from BYD Company (BYDDY).
Source: J. Lekavicius / Shutterstock.com

China’s BYD (OTCMKTS:BYDDF) is the top dog in the Chinese EV market and the global EV marketplace. Indeed, BYD has taken over the mantle from Tesla as the largest EV maker in the world by volume, suggesting that the manufacturing prowess out of China could drive the future more.

Recently, BYD introduced its new Yuan Pluss crossover, brandishing a 119,800 yuan price tag, which is 11.8% smaller than its predecessor’s final price. With 526,000 sales going up against 484,000, BYD won against Tesla’s similar crossover model in Q4 2023. Most of BYD’s vehicles are cheaper than Tesla’s, which gets 20% of its sales from China. This means that the footrace to win Chinese market share is a race BYD is clearly winning.

BYD’s “Seagull” models hit the shelves of Brazil and Mexico, expanding its Ocean Series to Latin America. These offer a functional and enjoyable EV with a strong structure, blade battery, six airbags, an intelligent cabin system and voice assistant technology. Overall, I like BYD’s continued model innovation and its global growth prospects relative to the field right now.

Polestar Automotive Holdings (PSNY)

A Polestar (PSNY) sign at the area at Polestar powerstop in Mjölby.
Source: Jeppe Gustafsson / Shutterstock.com

Polestar Automotive’s (NASDAQ:PSNY) stock price recently rose 20% after the company bagged nearly $1 billion in funding from a group of banks. For future models and production ramp-up—a cash-burning company in the cutthroat EV sector—the $950 million loan is vital. Despite growing interest rates, Polestar needed to prove its action was necessary to stay on track and show investors that the company is stable, especially with recent production launches and a funding gap because of Volvo’s (OTCMKTS:VLVLY) reduced support.

Additionally, Polestar’s shares shot up on March 1 thanks to the advancements in its collaboration with Hubei Xingji Meizu, a joint venture set on introducing EVs in China. The venture secured a subscription agreement with Investor Nanjing Jiangning, buying $208 million in stock that came with a board seat.

Still an early-stage EV player, Polestar is the higher-risk bet of this group of EV stocks. That said, it’s a solid bet for investors playing the European market. Polestar could also gain significant global market share over time.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/hop-in-3-white-hot-ev-stocks-ready-to-fire-on-all-cylinders/.

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