The EV market holds one of the most highly anticipated futures in stocks. Recent marketwide events, such as a dropoff in the price of lithium, have made for a volatile and slow few years. However, since many countries want to reduce carbon emissions, EVs are more vital than ever. However, no matter what comes their way, these EV stocks to buy have shown resilience.
Though they involve risk, their upside this year is nothing to sneer at. These EV stocks offer some of the strongest buys this year and are excellent long-term holds.
Let’s examine the best EV stocks to buy and their recent movements. Despite setbacks, they have returned to focus this year with excellent promise for investors.
Nio (NIO)
Nio (NYSE:NIO) is based in China and, as such, was subject to the prolonged series of lockdowns and supply chain constraints affecting Chinese companies for so long. However, the company showed its true potential in 2023, delivering 160,038 EVs immediately after the zero-COVID strategy regulations were lifted in China at the end of 2022.
Deliveries jumped to 30.7% year-over-year in 2023. In addition to reviving its operating capacity, Nio is making great strides in innovation within the EV market. One example of this is Nio’s unique battery-as-a-service subscription service. With a subscription, EV owners can charge batteries and swap them out for new ones when it is time.
Nio has devoted itself to improving its service, expanding and updating the subscription last year to allow users to swap more frequently. Nio has a solid source of capital to continue these innovations as well. At the end of last year, Nio received $2.2 billion from CVYN investments.
Nio has fantastic potential but comes with risk. Chinese regulations, heavy spending and recent downgrades make the stock unpredictable. However, many investors continue to believe in Nio and its substantial growth potential for the future.
Albemarle (ALB)
Lithium is one of the leading components in EV batteries, which means that EV demand pushes and pulls lithium producers. Albermarle (NYSE:ALB) is at the top of the charts for lithium production and continues to capitalize and see fantastic growth amidst rising demand for EVs.
Recently, Albemarle saw a significant drop in price as lithium took a major hit this year. However, the story that makes this stock a sure buy this year is the phenomenal recovery efforts it is showing so far. Slowly but surely, Albemarle is climbing, showing a slight increase over the last month.
Albemarle’s 2023 report showcased a record year for net sales, reaching $9.6 billion, a 31% increase year over year. Albermarle shows enticing promise and strong potential for a comeback, with a mostly positive outlook for this year.
Investors should definitely consider Albermarle since it is one of the companies that will benefit most from EV demand.
Rivian (RIVN)
Rivian (NASDAQ:RIVN) has been a hot EV stock for some time now and has seen its fair share of ups and downs. Since its peak price in 2021, Rivian has settled significantly, but it has only gained a stronger foothold in the EV market.
Rivian’s best sellers are the R1T truck, the EDV van and the R1S SUV models, which have become wildly popular in the United States. In 2023, the R1T and R1S had combined sales of 42,847, thanks to a mass-production deal for EDV vans with Amazon.
Rivian almost doubled its yearly production in 2023 to 57,232 vehicles, and revenue reached $4.434 billion. Although it has debt and a net loss to overcome, Rivian is a promising growth stock for this year. Investors should consider it a top pick for EVs while its value is not inflated.
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.
