3 EV Stocks to Buy Now: May 2024

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  • Consider these three EV stocks to buy
  • Stellantis (STLA): One of the Big Three automakers is also the best long-term growth EV stock.
  • Tesla (TSLA): The largest  EV maker’s much-improved Full Self Driving technology will be released in August.
  • Rivian Automotive (RIVN): New models with competitive sourcing could help the company turn profitable soon.
ev stocks to buy - 3 EV Stocks to Buy Now: May 2024

Source: shutterstock.com/JLStock

The EV market has an enormous potential to grow due to increased demand for more low-emission vehicles. In the first quarter of 2024, 268,909 new electric vehicles were purchased by Americans. By 2030, we are expected to see over 125 million EVs on the road globally, which is a drastic increase from 26 million last year.

While the competition is increasing in the market, the continuously rising demand for EVs still leaves EV companies with high growth potential. Below are the three EV stocks to buy this month that investors should consider.

Stellantis (STLA)

Stellantis (STLA) logo at the transmission factory. The Stellantis subsidiaries of FCA are Chrysler, Dodge, Jeep, and Ram.
Source: Jonathan Weiss / Shutterstock.com

Stellantis (NYSE:STLA) is the result of a merger between the Italian-American multinational corporation Fiat Chrysler Automobiles and French multinational auto manufacturer Peugeot in 2021. Currently, Stellantis owns 14 automotive brands, most notably Chrysler, Jeep, Fiat and Ram. It currently stands as Europe’s second-largest market shareholder. 

In the first quarter of 2024, Stellantis recorded a 23% year-over-year growth in the Middle East & Africa region as well as an overall 8% sales increase in global battery EVs (BEV). It saw 13% growth in low-emission vehicles. 

Stellantis is progressing its ‘Dare Forward 2030’ plan to electrify all vehicles sold in Europe and 50% of vehicles sold in the U.S. by 2030. Stellantis currently has 23 battery BEVs on the market, which saw 384,000 units sold in 2023 — 21% growth year-over-year. The company expects to release 24 more models by the end of this year. 

Stellantis is one of the best EV stocks to buy for the long term. Stellantis will be able to take advantage of the continual increase in demand for EVs with its current electrification plans. It asserts itself as the forerunner in the electrification of vehicles.  

Tesla (TSLA)

Tesla (TSLA) sign on the building on car sales
Source: Vitaliy Karimov / Shutterstock.com

Tesla (NASDAQ:TSLA) is a globally leading automaker that specializes in electric vehicle models. While challenges like losing market share in the U.S. and China, along with hostility from the media remain, investors and Wall Street analysts are bullish on the company. 

In just three months, Tesla is expected to reveal its Cybercab project which entails the company’s dramatically improved Full Self-Driving technology (FSD). According to CEO Elon Musk, the new software update will result in a “5 to 10x improvement in miles per intervention.”

Another exciting development is Tesla’s low-cost $25,000 EV. It could make its debut as soon as the first half of next year. Compared to the rapidly growing and saturated luxury EV market, Tesla could capitalize on the relatively smaller affordable EV market. This will provide Tesla a more diversified revenue stream. It is also a good opportunity to increase its dominance in the overall EV market. 

Rivian Automotive (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 Automotive (NASDAQ:RIVN) is one of the few U.S. companies focusing on luxury EV sport cars and pickup trucks. 

One of the main problems that has stuck with Rivian since the very beginning is its profitability — or lack thereof. This was a major reason for the dramatic decline in the RIVN stock from $130 per share to its current price around $10.30 per share.

Rivian’s upcoming models R2 and R3 are more affordable midsize SUVs compared to their predecessors, the R1T and R1S. They offer a more approachable option for customers and give Rivian a significant cost advantage through competitive sourcing. The company reported a reduction of $550 million in its capital expenditures guidance followed by new it would produce new R2 models in its existing Illinois factory rather than a planned factory in Georgia. Moreover, Rivian received $827 million in incentives from Illinois.  

In terms of financials, Rivian reported an 82% year-over-year revenue growth from $661 million in the first quarter of 2023. It shows its near-term growth potential and the possibility for Rivian to bounce back. 

On the date of publication, Andy Kim 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.

Andy is a self-taught investor who is interested in ESG and socially responsible investing. He has managed the portfolio of a small investment fund and started his own research firm. Through his freelance writing on InvestorPlace, he hopes to find and share promising investments in companies with the goal of bettering the world.


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