3 EV Stocks to Buy Before They Soar to New Heights in 2024

Stocks to buy

An Ernst & Young survey revealed that 48% of the U.S. consumers who plan on purchasing a new car in the next 24 months plan on going electric, making EV stocks a compelling investment proposition.

On the global stage, the trend is equally encouraging. Data from the International Energy Agency (IEA) indicates that electric vehicle sales worldwide have tripled in the last three years. In 2022, EVs represented 14% of total sales, a jump from just 4% in 2020.

However, a major concern among potential buyers is the lack of adequate EV charging infrastructure, with 51% of Americans voicing this worry. Given these trends, savvy investors might keep an eye on these three promising EV stocks.

Li Auto (LI)

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Li Auto (NASDAQ: LI) is making significant strides in China’s competitive electric vehicle market thanks to its impressive delivery numbers. The company reported a record delivery of 36,060 vehicles in September, a 212% year-over-year increase.

Financially, the company appears robust. Projections indicate that Li Auto’s revenue might reach $4.59 billion next quarter, up from $3.95 billion this quarter. Li’s consistent beating of sales estimates in the past year lends credibility to these figures.

Additionally, Li Auto holds the distinction of being the first Chinese EV manufacturer to reach 500,000 cumulative deliveries. Their product lineup is also expanding, with the recent launch of three new models, including the popular luxury full-size crossover SUV, the Li L9.

Building on this sentiment, TipRanks insights emphasize a strong buy with a massive 57.7% upside potential for LI.

BYD (BYDDF)

Source: J. Lekavicius / Shutterstock.com

For investors keen on riding the EV wave, BYD (OTCMKTS: BYDDF) is another standout in the sector. It dominates the EV landscape in China and has made strategic inroads into global markets, including Japan, Australia, and France. This international expansion further cements BYD’s ambitious vision beyond its homeland.

Moreover, Its EV sales surged by an impressive 67% in the third quarter, reaching 431,603 units. This robust performance brings them tantalizingly close to eclipsing Tesla, whose sales witnessed a dip from 466,140 to 435,059 year over year. Additionally, BYD reported a staggering 204% bump in profits in the first half of the year, complemented by a 28.6% year-over-year revenue growth.

Looking ahead, 2024 is shaping up to be a significant year for the company. With plans for global expansion and a new factory in Thailand starting production, BYD is continually evolving. TipRanks analysts are echoing the optimism, pointing to a strong buy recommendation with an alluring 77% upside potential.

Nio (NIO)

Source: Robert Way / Shutterstock.com

Nio (NYSE: NIO), a notable Chinese EV contender, confronted challenges this year from supply chain disruptions and lockdowns. Yet, it surged back remarkably, increasing its deliveries from 23,520 cars in Q2 to a whopping 55,432 by Q3. Additionally, having rolled out an impressive 109,813 vehicles this year and with new models on the horizon, Nio’s journey forward appears bright.

Moreover, what truly sets Nio apart is its ingenious Battery-as-a-Service offering, placing it uniquely ahead of many of its Chinese EV counterparts. Augmenting its tech portfolio, the company recently introduced an Android-based phone, priced at $890, tailored to interface seamlessly with Nio vehicles.

Furthermore, safety remains a cornerstone for the company. The brand proudly touts a five-star safety accolade for both its ET5 sedan and SUV EL7. With plans to amplify deliveries to an ambitious 30,000 per month and its stock currently trading at under $8, Nio’s trajectory hints at significant potential for expansion.

On the date of publication, Muslim Farooque 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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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