Rising interest rates and inflation concerns have had a huge impact on the stock market and the economy, including the automobile industry. But that won’t last, and as optimism returns, auto sales will rise. Consumers are transitioning from fuel-driven cars to EVs, so it’s wise to find the electric vehicle stocks to buy before the bull market returns.
The adoption of EVs across the U.S. is impressive and it is growing at a solid pace. EV makers are trying their best to increase production and meet the rising demand. The Government is also offering the necessary incentives to ensure the quick adoption of EVs. Looking at the current scenario, one can rightly say that EVs are the future of the world and they are here to stay. The current market volatility can be considered an ideal opportunity to invest in electric vehicle stocks before they surge again.
I have always been bullish about EV stocks because I believe in the technology and its long-term impact on our lives. Complete EV adoption could take years but we are on the right path. The EV companies mentioned here are in the growth stage and have humongous potential to grow. Let’s dig deeper into the electric vehicle stocks to buy before the bull market returns.
Chinese EV maker Nio (NYSE:NIO) has been in the news lately for several positive developments. The company has an exciting new battery upgrade for the fourth quarter of this year. It will offer a 150 kWh solid-state battery to old and new Nio car owners alike.
All new Nio models will come with the new battery. Existing owners can easily swap in the batteries whenever they want to.
This battery is a great move in the industry and it will improve the efficiency of Nio models to a great extent. That said, the EV maker also has an attractive product lineup. Last month, it launched the ES7, an advanced EV that can go from 0 to 60 miles per hour in under four seconds. It is also working on a mass-market model that will become available in 2024.
With a new battery and an attractive product lineup, there is a lot to look forward to. Having reported solid monthly deliveries for consecutive quarters, Nio has become a strong player in the EV industry and NIO stock is a deal while it is trading below $20. The new products will drive growth and the company could also impress investors with the quarterly numbers.
The company is in a good place to capture a large pie of the EV industry so NIO stock is a solid buy before it starts the upward journey. It’s one of the top electric vehicle stocks to buy before the bull market returns.
XPeng (NYSE:XPEV) is another solid player in the industry. It’s slowly but steadily making massive progress. XPEV stock is trading at around $24 today, much higher than its peers but significantly lower than the all-time high of $56.
The EV maker beat revenue and EPS estimate in the previous quarter and delivered 15,295 vehicles in June, a 133% rise year over year. This is despite the supply chain issues and China lockdown.
It shows the immense potential that XPeng has. The Guangzhou-based company expects to deliver 31,000 to 34,000 EVs this quarter and I think it is already on the higher end of the sales range predicted. We will also see a solid quarterly report coming soon.
XPEV stock is a solid long-term investment and is another of the top electric vehicle stocks to buy before the bull market returns.
Working in a league of its own, Ferrari (NYSE:RACE) is a name you associate with luxury. The company is gearing up to enter the EV industry and is ready for action with its first EV supercar entering the market in 2025. RACE stock is trading at a little over $207, lower than the 52-week high of $278.78.
Take this drop as a chance to load up on the stock. You cannot compare Ferrari with other top EV makers in the industry because it has already established a standard for itself. The company is known for quality over quantity, and it caters to the luxury segment.
Its full-year revenue for 2021 was 4.3 billion euros and it is worth noting here that the company does not make a lot of vehicles. Its least expensive vehicle starts at $226,000, yet the numbers are mind-blowing and it has consistently reported a rise in the number of vehicles shipped for the past six years.
It only has plug-in hybrid cars currently but it plans to change that. Ferrari expects to 40% of its sales in 2030 to be EVs, and that will bolster the stock. Grab RACE stock while it is still affordable.
BYD (OTCMKTS:BYDDF) is one of the holdings of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) and the company recently came into the news after beating Tesla (NASDAQ:TSLA) in delivery numbers. This manufacturer of EVs and plug-in hybrids is growing at a massive rate and is expanding the battery manufacturing business.
Despite everything affecting the economy in 2022, the company has managed to maintain its sales momentum. It has also entered the passenger vehicle market in Japan with three models, ushering in a new era.
Currently known as the world’s largest EV maker, BYD is only beginning. The company is in the growth stage and has a long way to go.
BYD stock could be the next hot thing in the industry and might become the best EV maker in the next few years.
Lucid Group (NASDAQ:LCID) is a small player in the industry and it only went public last year. LCID stock was trading at $18.24 at the close Thursday and its 52-week high was over $57. This shows how much potential the company has in the long term.
Lucid only delivered 360 vehicles in the first quarter, so it might be too early to speak about the production timeline. But its Saudi Arabian collaboration will help it in the long run.
With production facilities in place and solid reservations on paper, Lucid has the potential to achieve a higher level of success. We might get a better look at the fundamentals of the company by the end of this year but 30,000 reservations is no small number. LCID stock might look risky today, but the potential reward can be huge. Consider it one of the top electric vehicle stocks to buy before the bull market returns.
Li Auto (LI)
Li Auto (NASDAQ:LI) does not have a lot of products in the market, but it is making strong moves with the Li-One EV. Its deliveries soared 150% year over year and the stock has been on fire since the company’s first-quarter report. LI stock is up 39% over the past six months and is trading at $32.67 today. The company sold 28,687 EVs in the first quarter, up 63% from the past year.
It has also delivered solid numbers in the past three months, and the deliveries for the second quarter will be much above the forecast range. It recently unveiled the L9 which will start deliveries by the end of August. The company expects to hit sales of 10,000 in September. If not for the supply chain constraints and China lockdown, Li Auto may already have beaten some of the major players in the EV industry.
LI stock looks promising and has immense space to grow.
Next on the list is Rivian (NASDAQ:RIVN). One of the most talked about EV stocks lately, RIVN stock went public at $78 and hit an all-time high of over $179 in no time. However, the stock has dropped since then but it still remains highly valuable. The company has attracted a lot of investor interest due to the Amazon (NASDAQ:AMZN) contract.
The e-commerce giant had ordered 100,000 electric delivery vehicles to be delivered by 2030. This contract has given a massive boost to the company and a solid push to the stock. There were delays and supply chain issues but Amazon has recently revealed the trucks that are ready for a nationwide rollout. Also, Tim Cook loves the Rivian electric truck. Load up on RIVN stock before it soars.
On the date of publication, Vandita Jadeja 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.