These 3 EV Stocks Could Outperform All Others in 2024

A few years ago, electric vehicles (EVs) were dismissed as luxury items or niche transportation for environmentalists. However, the impact of fossil fuel markets and global warming has made the case for EVs stronger.

Currently, close to 3 million are driving EVs on U.S. roads. Even if you are not interested in owning an EV, investing in companies that benefit from this technology is worth considering.

With that in mind, let’s dive into a few of the best ways investors can gain exposure to this sector. In my view, these three stocks are among the best ways to play this space right now.

ChargePoint (CHPT)

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First up, ChargePoint (NYSE:CHPT) holds significant promise with the potential mass adoption of EVs. A leading EV charging infrastructure stock, ChargePoint currently holds a dominant market share of 65% in this space.

Also, government incentives for EVs offer impressive growth opportunities. Further, ChargePoint’s global presence sets it apart from Tesla (NASDAQ:TSLA), making it a compelling investment with massive upside potential.

Moreover, ChargePoint’s business continues to show strength, evidenced by the company’s impressive  Fiscal Q1 2024 results. With 59% year-over-year revenue growth (to $130 million), the company is seeing the positive impacts of subscription revenue growth. As the number of charging ports grows, recurring revenue and EBITDA margin will increase. In addition, the company has a strong presence in North America and operates in 16 European countries, providing a wide open market for continued robust revenue growth.

Li Auto (LI)

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Li Auto (NASDAQ:LI) has shown a significant rally this year, driven by strong business developments. With delivery growth of 201.6% in Q2 2023 and the launch of new models, LI stock is worth considering for long-term investment. This rings especially true with the upcoming release of the Li MEGA model in Q4 2023.

With strong government support, Li Auto is poised to capture a significant portion of China’s EV market. In June, the company achieved a remarkable 150% year-over-year increase in deliveries, reaching a record-breaking 32,575 vehicles. Therefore, this milestone makes Li Auto the only Chinese premium brand to achieve such high monthly deliveries. 

Li Auto has set an ambitious target of 40,000 monthly deliveries for the fourth quarter. And, it plans to launch its luxury Li MEGA 5C battery electric vehicle (BEV) model during this period. The flagship model will be priced at least 500,000 yuan ($70,000 USD). The company’s Q2 earnings report is expected to be released on August 8, with analysts predicting significant year-over-year growth in revenue, adjusted gross profit, and GAAP EPS. This would mark an impressive third consecutive quarter of positive EPS.

Byd Co. (BYDDF)

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BYD Co. (OTCMKTS:BYDDF), backed by Warren Buffett, holds a dominant position in the Chinese EV market, being the best-selling car brand and accounting for nearly 40% of new-energy vehicle sales. In Q2, the company delivered over 700,000 new energy vehicles, with about half being fully electric, surpassing Tesla’s deliveries. Furthermore, BYD is competing strongly with Tesla in emerging markets such as Brazil, Israel, and Thailand.

BYD, already a dominant force in the Chinese EV market, aims to become the world’s top EV maker this year. Beyond EVs, it has emerged as the world’s second-largest EV battery supplier, surpassing LG. The company boasts solid financials with substantial revenue growth and a promising outlook. Wall Street analysts project a 24% potential upside from the current stock price.

Discussing the top battery stocks, BYD surpassed LG Energy Solution to claim the second spot as the world’s largest EV battery producer. Their Blade Batteries are highly favored by EV manufacturers for their superior safety, durability, performance, and increased battery space utilization.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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