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These Are the ONLY 3 EV Stocks to Consider in August 2023
With oil prices and gas pump costs increasing, electric vehicle (EV) ownership looks increasingly attractive to individuals and governments. As governments…
With oil prices and gas pump costs increasing, electric vehicle (EV) ownership looks increasingly attractive to individuals and governments. As governments globally push for EVs, the sector is in early growth stages, boosted by incentives and infrastructure development. Additionally, amidst growing global EV demand, top EV stocks are gaining traction. Yet, a slowdown is evident from increased deal inventory.
Regardless, EV sales could pick up, especially as global leaders aim to phase out gas-powered vehicles by 2035. President Joe Biden also targets 50% EV new auto sales by 2030.
Here are three top EV stocks for August, as consumer confidence in EVs grows with expanding infrastructure.
ChargePoint (CHPT)
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ChargePoint Holdings (NYSE:CHPT) stock, down around 50% in a year, seems undervalued despite industry growth potential. Wood Mackenzie predicts a quadrupling of EV charging ports in the United States by 2027, suggesting ChargePoint has significant room for growth.
ChargePoint’s key innovation is its AC Level 2 chargers for homes and businesses worldwide. Despite losses, its network expanded to 48,000 points globally, giving it a competitive edge in the growing EV market.
ChargePoint’s robust growth is evident, with a 59% year-over-year revenue increase in Q1 2024 to $130 million. By Q4 2024, the company aims to slash adjusted EBITDA losses by two-thirds. Operating across the U.S. and 16 European countries, ChargePoint holds strong market potential and could benefit from expanding subscription revenue, boosting margins and potentially sparking a CHPT stock rally.
Lithium Americas (LAC)
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Lithium Americas Corp. (NYSE:LAC) focuses on lithium mining for EV batteries. Notable projects include Cauchari-Olaroz in Argentina and Thacker Pass in Nevada. The company shines with the promising Thacker Pass Project, after a favorable court decision for its 13.7 million tons lithium potential. Estimated after-tax net present value (NPV) is remarkable at $5 billion, bolstering its appeal.
As electric vehicle demand rises, LAC’s lithium production makes it an appealing investment. Lithium Americas offers strong assets for steady cash flow. The Cauchari-Olaroz project also holds potential, with a phased expansion plan for battery-grade lithium carbonate production. A planned split of U.S. and Argentinian assets could further unlock value.
Lithium Americas is set to exploit the “largest known lithium resource in the U.S.,” and aims for up to 40,000 tons production by 2026. Analysts predict potential profitability this year, expecting earnings of $0.84 per share and tripling in 2024.
Li Auto (LI)
Source: Robert Way / Shutterstock.com
Li Auto (NASDAQ:LI) stock is gaining attention as the Chinese EV company targets becoming China’s top premium vehicle seller by 2024, surpassing major brands like Mercedes-Benz, BMW and Audi. This goal follows a Q4 monthly delivery target of 40,000 vehicles and the upcoming debut of its all-electric model, the Mega. Li Auto expects the Mega to become its flagship passenger car, priced at RMB 500,000 or above, and plans to launch four new models next year.
In Q2, Li Auto achieved remarkable growth, delivering 86,533 vehicles (a 201.6% year-over-year increase) with sales totaling $3.86 billion (a 229.7% year-over-year increase and 52.6% quarter-over-quarter increase).
In July, Li Auto’s deliveries in China surged by 227% year-over-year. It also increased by 5% compared to the previous month, reaching 34,134. The popular five-seat SUV had already delivered 50,000 units by July. Meanwhile, six-seat SUV deliveries rose from 12,000 in March to about 20,000 last month. Analysts expect the company’s EPS to improve to 88 cents next year from a 2022 loss of 30 cents per share. This is easily one of the top EV stocks on the market.
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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