EV Stocks: Here’s Where to Invest $1,000 Right Now

Stocks to buy

It’s no secret that the past couple of years have brought volatile, less-than-ideal financial conditions for many corporations. As we continue to move toward a post-pandemic state of recovery, any signal of economic normalcy stands as a symbol of hope and optimism for better times ahead. One of such signal appeared on June 30, as many major indexes finished the first half of the year on a positive note

Most notably, all eleven sectors of the S&P had favorable closings as Apple (NASDAQ:AAPL) stock reached a historic $3 trillion market cap. The Dow Jones saw gains, growing about 4.6% over this period (the best since last November). Ultimately, this strong half-year finish can provide promise to investors who have experienced a shaky past as we transition into the second half of 2023.

A similar upbeat performance is possible to be seen across all sectors, and these three EV stocks are among the best options to buy right now.

Rivian Automotive (RIVN)

Source: Michael Vi / Shutterstock

Rivian Automotive (NASDAQ:RIVN) is an electric vehicle producer focused on light duty trucks. Despite RIVN stock decreasing -3.92% year-to-date, Rivian is still operating with excellent financials. In Q1, more than 9,000 vehicles were produced, and almost 8,000 of them were delivered. This resulted in a Q1 revenue of $661 million, representing a 595.8% year-over-year increase. Notably, Q1 non-GAAP earnings per share came in at -$1.25, which beat consensus by $0.34. 

Rivian’s biggest growth catalyst is the implementation of its new technologies. Specifically, I’m focused on the Enduro drive units and LFP battery packs.

Rivian’s Enduro production line is the company’s first use of an internally-developed plant software platform. This platform aids in the rapid bring-up of equipment. Using this platform will give Rivian greater control over its equipment, allowing Enduro to provide material cost improvements. As a reference, the implementation of Enduro and LFP battery packs into the Rivian EDV during Q1 reduced the EDV bill of materials by 25%. This implementation, which is expected to expand into the Rivian R1 during Q2, as well as the R2 coming out in 2026, will furt reduce costs and assist in the company’s goal of achieving profitability sooner than later.

Yahoo Finances reports 20 analysts covering this stock. Currently, RIVN stock carries a mean analyst price target of $22.85, spanning from $11.00 to $40.00. Many notable firms have assigned Rivian a “buy” rating, with no downgrades in sight. The company’s focus on cost reductions as well as its vertically integrated business model serves as a unique competitive advantage for Rivian. Thus, I’m confident this is a stock that can continue growing, alongside the EV industry. 

Stellantis N.V. (STLA)

Source: Antonello Marangi / Shutterstock.com

Stellantis N.V. (NYSE:STLA) is an international automotive manufacturing corporation that designs, develops, manufactures, and sells automobiles for over 16 different automobile brands.

Stellantis boasts strong financials, with revenue growing at a 40.6% compounded annual growth rate this past year. For Q1 2023, revenue was at $52.5 billion, beating out analyst expectations by $2.45 billion. Dividend growth for the company has grown 28.8% year-over-year, and cash from operations totaled an astounding $21.37B over the trailing twelve months. This is over 100-times greater than the sector median, and a great indicator of Stellantis’ profitability. 

Stellantis is currently developing two batteries for its EVs. The first is a nickel cobalt-free alternative battery which will have a lower production cost and lighter weight. The second is a nickel-based battery with a higher average charge capacity than the cobalt-free alternative and lithium-ion cells. Both batteries will have a high level of synergy, sharing components and production processes to further lower production costs. 

Additionally, Stellanntis has bought a 19.99% stake in Kuniko, a Norwegian commodities company that specializes in mining low-carbon nickel and cobalt sulfate, which will be essential for Stellantis to produce its batteries in the future. Stellantis is also launching free2move, a charging company designed to meet customers’ charging needs at home or on the go. With the mandated standardization of charging ports for all EVs in North America, this will definitely be an opportunity for Stellantis to drive revenue growth, utilizing a wider customer base.

Lastly, STLA stock is up 23.5% year-to-date, and 10 analysts have predicted an average predicted 12-month upside of 30.29%. Its healthy financials, commitment to electrification, R&D battery developments, and investments in the growing EV market are all reasons to buy this stock.

First Solar (FSLR)

Source: IgorGolovniov / Shutterstock.com

First Solar Incorporated (NASDAQ:FSLR) is a global leader in providing photovoltaic solar energy solutions, specializing in the design, manufacturing, and sale of cadmium telluride solar modules for converting sunlight into electricity, serving customers worldwide.

The global photovoltaics market is poised for strong growth. Currently, it is valued at $93.15 billion in 2022, with forecasts for this sector to grow at a 10.1% compounded annual growth rate to $243.81 billion by 2032. The growth of the photovoltaic industry is driven by many factors. One notable factor to consider is favorable government policies encouraging the adoption of solar. Another is derived from utility-driven large-scale solar installations. And finally, there’s plenty of demand for residential solar PV systems as well.

First Solar has been experiencing robust growth, with forward revenue growth of 16.30% expected by analysts. Moreover, in FY 2023, First Solar demonstrated outstanding operational performance. Notably, the company has achieved an impressive 5-year average operating cash flow growth of 62.26%. This comes in significantly higher than the sector average of 11.10%, and makes this a stock to buy in my view.

FSLR stock presents itself as an enticing investment opportunity. This is a company that’s displayed impressive financial performance and surpassed its competitors in many metrics. But it’s also a company that’s shown a commitment to innovate with its unique photovoltaic technologies. All in all, this is a company that promises a sustainable and efficient future, and I like that.

On the date of publication, Michael Que 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.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga, and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments

Articles You May Like

3 Warren Buffett Stocks Worth a Top Spot on Your April Buy List 
Reddit Stock May Be More Than a Meme, But It’s Still Not a Buy.
Election Year Encore: Can 2020’s Top 7 Stock Winners Repeat Their Performance in 2024?
3 Tech Stocks to Turn $10,000 Into $1 Million: April 2024
Dividend Danger Zone: 3 Aristocrats on the Brink of a Payout Cut