3 EV Stocks That Could Make You a Fortune (if You Dare)


  • Despite the current, prevalent anti-EV hype, EVs are going to proliferate widely over the longer term.
  • Rivian (RIVN): RIVN’s EVs are resonating with both consumers and businesses. 
  • Xpeng (XPEV): Xpeng’s huge, new vehicle has become a big hit in China.
  • EVgo (EVGO): The EV charger operator is growing very rapidly.  
EV stocks to buy. - 3 EV Stocks That Could Make You a Fortune (if You Dare)

Source: totojang1977 / Shutterstock.com

I believe that there are many worthwhile EV stocks to buy currently available. That’s because, in my view, by 2030 electric vehicles will likely account for close to a majority of all the vehicles sold in the U.S. The main reason for this is that electricity will always be cheaper on average, than gasoline. After all, oil is in general much more expensive to produce than electricity since companies have to conduct exploration operations in order to find oil, and drilling for oil is rather costly. Additionally, speculators frequently bid up the price of oil in America, while electricity prices are generally tightly regulated.

Let’s not forget that the amount of time needed to charge EV batteries is constantly dropping, while the number of public EV chargers is rapidly increasing and batteries are consistently getting cheaper to produce. So total cost of ownership for EVs will eventually be much lower than gasoline-powered vehicles, and EVs are going to become much more convenient to use than they are now. For long-term investors who are brave enough to defy the current, anti-EV hype, here are three top EV stocks to buy.

Rivian (RIVN)

Rivian (RIVN) logo is seen at a Rivian service center in South San Francisco, California. Rivian Automotive, Inc. is an electric vehicle automaker.
Source: Tada Images / Shutterstock.com

Rivian (NASDAQ:RIVN) has become a rather popular brand among both consumers and businesses. As evidence of the latter assertion, consider that the EV startup delivered nearly 50,000 EVs last year. Meanwhile, the firm received over 68,000 orders for its upcoming midsize electric SUV in less than 24 hours.

Meanwhile, the automaker recently initiated a rebate of up to $5,000 for some consumers who trade in certain types of trucks to buy one of Rivian’s EVs. I believe that this rebate will significantly increase the automaker’s deliveries this year while enticing thousands of consumers to buy or lease a Rivian EV for the first time.

On the commercial side, Rivian is slated to deliver about 86,500 more vans to Amazon (NASDAQ:AMZN) over the long term, while AT&T (NYSE:T) is currently testing Rivian’s EVS. Additionally, JB Poindexter & Co, whose customers include Fedex (NYSE:FDX) and UPS (NYSE:UPS), is selling a new delivery van that utilizes RIVN’s chassis.

The company’s positive catalysts on both the consumer and commercial sides make it one of the best EV stocks to buy.

Xpeng (XPEV)

XPeng (XPEV) car logo in Shanghai International Automobile Industry Exhibition
Source: THINK A / Shutterstock.com

Xpeng’s (NASDAQ:XPEV) deliveries surged 33% in April versus the same period a year earlier. The company’s huge, seven seat, multi-purpose EV (MPV), the X9, continues to be very popular. The firm provided its customers with 1,959 of them last month. According to Xpeng, the X9 is the top selling electric MPV in China.

The automaker noted that its driver-assistance system, the XNGP, is being used by 82% of its customers in urban venues. This suggests that Xpeng’s customers are finding the system useful. Widely viewed as similar to Tesla’s (NASDAQ:TSLA) full-self driving system, the XNGP was called fairly impressive by a Chinese YouTube broadcaster. Meanwhile, the website Elektrek similarly labeled videos of it in action as impressive.

XNGP is now available on every road in China. And, the firm is working on getting it ready to be rolled out in Europe. Also importantly, Xpeng is preparing to launch what it calls the industry’s first mass-produced visual neural network large model in vehicles. The system will reportedly enable its EVs to see roads and learn about driving similar to a human.


An EVgo charging station at the Victor Valley Mall in the City of Victorville.
Source: Felipe Sanchez / Shutterstock.com

In March, Canadian bank RBC Capital echoed my longtime bullish feelings on EV charging company EVgo (NASDAQ:EVGO). Specifically, the bank upgraded the shares to “outperform” from “sector perform.” RBC says the company will benefit from the increased prevalence of EVs going forward.

The bank also expects EVgo to actually be helped by elevated interest rates and the slowdown of EV growth. That’s because those factors are preventing small companies from entering the EV charging sector and competing with EVgo.

In the fourth quarter, the company’s revenue surged 84% versus the same period a year earlier to $50 million. Meanwhile, its gross profit came in at $3.5 million. That is much better than the gross loss of $1.1 million it experienced during the same period in 2022. Also importantly, the firm recruited over 110,000 new customers in Q4.

On the date of publication, Larry Ramer held long positions in RIVN, XPEV and EVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-ev-stocks-that-could-make-you-a-fortune-if-you-dare/.

©2024 InvestorPlace Media, LLC