Electric vehicle stocks were roughed up in 2022. In fact, many crashed with some reporting a drop in deliveries. All thanks to supply chain issues. But with inflation slowly cooling and markets picking up, smart investors have started to look for EV stocks that can make you rich again.
After all, governments around the world are demanding that more people drive more EVs. In the U.S., for example, President Biden wants half of the total vehicle sales to be electric by 2030. This means the demand for EVs could accelerate. In addition, S&P Global Mobility predicts electric vehicle sales in the US could reach 40% of the total car sales.
If this happens, investors may want to park in EV stocks that can make you rich.
Tesla (TSLA)
At the top of my list is Tesla (NASDAQ:TSLA). The name is synonymous with EVs and it is already enjoying an early-mover advantage. The company delivered a record 440,808 EVs in the first quarter, beating estimates.
It already has 95,829 new vehicle registrations in the U.S. in the first two months of 2023 which is a 35% rise over the same period last year. It saw the strongest orders year to date in Jan. and aims to deliver two million cars in 2023. Granted, many think that Tesla has reached a tipping point and it might not be able to handle the rising competition. However, I believe in the company’s potential to generate returns.
At the moment, shares of TSLA trade at just under $186 a share, much lower than the 52-week high of $364. From here, TSLA has the potential to hit $200 over the coming months.
Yes, the company is having a tough time dealing with competition in the market but it continues to remain one of the top EV makers today. Tesla is building a new battery factory in Shanghai which will be able to produce 10,000 of its “Megapack” energy each year. It already has one such plant in California. TSLA stock is one of the EV stocks that can make you rich in the long run.
BYD Co. (BYDDF)
The biggest Tesla competitor-BYD Co.(OTCMKTS:BYDDF) has massive upside potential. Backed by Berkshire Hathaway (NYSE:BRK.A,NYSE: BRK.B), the company has already delivered more EVs than Tesla and is doing everything to dethrone Tesla from the top.
BYD delivered 911,141 EVs and 946,238 hybrids in 2022. Its total deliveries stood at 1.86 million while Tesla’s cumulative deliveries stood at 1.3 million. Besides being profitable, it is also reporting solid top and bottom-line growth. It’s also trading at just $27 a share, making it one of the more affordable EV stocks to consider.
Even better, the company has reported stellar delivery numbers quarter after quarter which puts it at the top in the EV sector. In fact, BYD has benefitted from the fierce price war with Tesla and is successfully reporting higher sales. And with the Chinese market recovering, BYD is set to gain.
Volkswagen (VWAGY)
German automaker Volkswagen (OTCMKTS:VWAGY) might not be a pure EV play but the company is taking giant leaps towards becoming one. It’s a leader in the EV sector and is investing heavily in battery plants. The company also intends to build its first overseas EV battery plant in Canada, which could play a big role in its expansion across Northern America.
VWAGY stock is trading at $16.80 today and this makes a great entry point for investors. Also, to make the most out of recent momentum, it announced a $7.1 billion investment to boost the product lineup, manufacturing, and R&D in North America. In addition to that, it is also planning to introduce over 25 battery electric vehicles by 2030.
Volkswagen is making a $20 billion investment to build its own EV batteries and this is something that will help reduce the supply chain hassles in the long term. Besides the plant, the company also plans to build six battery plants in Europe by the end of 2030 since it will help secure a supply of batteries that can help power its models. An already established name in the industry, Volkswagen will find it easier to navigate the EV sector and its presence across the EU will boost sales in the coming months.
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.