The EV market is heating up in both domestic and international markets. While the EV sector in the U.S. has a projected compound annual growth rate of 15.5% until 2032, the international market is looking at a slightly higher target of 15.9%. This makes this a highly lucrative sector – and also one several companies want to enter.
This fragmentation has had a clear impact recently. Many were shocked when it was revealed that Tesla Motors‘ (NASDAQ:TSLA) market share in the U.S. fell to below 50%. This fragmentation is good for both consumers and investors – a higher supply will lead to a lower average price and more options for all types of investors.
A larger number of companies in the EV space will also allow investors to diversify their EV assets. Here are three EV stocks to buy now.
General Motors (GM)
General Motors (NYSE:GM) is a global automotive company that designs, manufactures, and sells vehicles and vehicle parts. In the EV market, GM has made significant strides with its commitment to an all-electric future. The company aims to launch 30 new global EVs by 2025.
Regarding quarterly revenue growth, GM’s revenue was up in the first quarter by 7.6% from a year ago, reaching $43.1 billion. Net income of $2.98 billion was up 24.4% from a year ago. GM stock has great financials, consistently beating earnings per share predictions over the past year.
For the full year, GM increased its guidance to range of $12.5 billion and $14.5 billion in adjusted earnings, from a previous range of $12 billion to $14 billion.
Recently, GM stock has been up 5.8% for the past week. Factors influencing GM stock value include a $500 million federal grant to enhance EV production at the GM Lansing Grand River plant in Michigan and a $390 million investment by GM supplier Gestamp to upgrade its Michigan-based manufacturing facilities. All this positions GM as one of the best EV stocks to buy.
Li Auto (LI)
Li Auto (NASDAQ:LI) is a Chinese electric vehicle manufacturer specializing in premium smart SUVs. The company emphasizes extended-range electric vehicles to alleviate range anxiety. Li Auto integrates advanced technology and luxurious design to provide safe, convenient, and comfortable mobility solutions.
It’s currently trading under $21, and is up over 9% over the last month. The company has reported troubling earnings lately, missing its last quarter estimate by a huge margin of 26 cents per share. Revenue in the first quarter was $3.6 billion, up 36.4% over last year, but the company reported a loss of $81 million. Recent reports indicate positive analyst ratings, suggesting an average price target of $34.95.
The company has announced plans to introduce new EV models, including a pure electric vehicle, which is expected to drive future growth. Additionally, Li Auto has been ramping up its infrastructure with new manufacturing facilities and increased development in research and development. The stock’s significant upside potential and the company’s strategic initiatives make it a definite EV stock to buy.
Nissan Motor Co. (NSANY)
Nissan Motor (OTCMKTS:NSANY) is one of the world’s most renowned automobile companies. It operates internationally, although it is based in Japan. Nissan also operates under the Infiniti brand. While it has specialized in internal combustion engine technology, it is making moves into the EV space, especially with the sale of lithium-ion batteries.
Nisson is trading over the counter at $7 at this writing. Analysts have given this company a “buy” rating, and an average growth target of $7.85. This is due to its strong technical and fundamental aspects. It has seen a quarterly revenue boost of 13.5% from a year ago, and has a profit margin of 3.36%, lower than the sector average. However, the company has large stockpiles of cash on hand, sitting at $2.02 trillion. This stockpile will allow the company to invest in research and development.
We have seen evidence of this recently. It has been reported that the company is collaborating with Honda (NYSE:HMC) in reference to EV charging networks and software. This will result in shared use of this technology. This creates a strong case to invest in NSANY for its future EV plans.
On the date of publication, Achintya Pasricha did not hold (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.
On the date of publication, the responsible editor held a LONG position in LI.
