3 EV Stocks You Will Regret Not Buying Sooner: November 2023

Stocks to buy

Electric vehicles (EVs) are undeniably a part of our future. As the EV market experiences a generational surge, discerning investors are closely watching EV stocks to buy. However, it is imperative to separate the wheat from the chaff, and a select few stand out with the potential for solid long-term gains.

The International Energy Agency (IEA) reports that worldwide EV sales have tripled in the past three years. Remarkably, EVs made up 14% of total vehicle sales in 2022, a significant increase from just 4% in 2020. Moreover, while the Biden Administration aims for electric vehicles to comprise 50% of auto sales, realizing this goal hinges on a substantial expansion of the EV charging network.

Yet, optimism remains high, with forecasts from Ernst & Young predicting an astounding 82 million EVs on U.S. roads by 2035. This context sets the stage for three standout EV stocks that are poised for success in this rapidly evolving landscape.

Li Auto (LI)

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Li Auto (NASDAQ:LI), a standout in China’s EV market, continues to make significant strides with its innovative extended-range electric vehicles. In the third quarter of 2023, the company showcased a heartening 271.6% surge in vehicle sales compared to the previous year, translating to roughly $4.61 billion. This growth, coupled with a solid vehicle margin of 21%, took total sales to an amazing $4.75 billion, a whopping 271.2% year-over-year increase.

Moreover, Li Auto’s first half of 2023 was equally impressive. The company delivered over 130,000 vehicles, indicating a potential doubling in year-over-year sales. Additionally, predictions suggest a revenue jump from $16 billion in 2023 to nearly $66 billion by 2032, highlighting a long-term expansion potential.

Furthermore, at its annual general meeting, Li Auto achieved crucial shareholder approvals, including updating its articles of association, re-electing key directors, and gaining authorization for share issuance and repurchase. These pivotal steps should help in consolidating Li Auto’s market position and gearing up for future growth.

XPeng (XPEV)

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XPeng (NYSE:XPEV), a key player among Chinese EV manufacturers, is commanding attention from investors with its rapid growth trajectory. Highlighting this ascent, XPeng’s second-quarter vehicle deliveries reached 23,205, marking a 27% increase over the first quarter. Additionally, the company set a record in October by delivering over 20,000 vehicles, nearly matching eclipsing its entire second-quarter sales.

Moreover, the international edition of XPeng’s high-tech sedan, the XPENG P7, received a nomination for the Premium Electrical Car of the Year award for 2023/24 by Lyd & Billede Home. Further cementing its reputation, the 2023 Euro NCAP tests awarded the XPENG P7 a 5-star safety rating, a testament to its exceptional safety features and robust body structure.

Moreover, through its XPeng AeroHT subsidiary, the company is venturing into the realm of flying cars, adding an intriguing dimension to its portfolio. This innovation positions XPeng as a compelling choice for investors seeking dynamic growth potential in the EV sector.

BYD (BYDDF)

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BYD (OTCMKTS:BYDDF), a titan in the EV industry, is a must-watch for investors eyeing the EV market. Dominating the EV landscape in China, BYD is also making significant inroads globally. The company’s financial health is robust, as evidenced by a record quarterly attributable net profit of $1.42 billion, a staggering 82.2% increase from the previous year. Additionally, its quarterly revenue saw a healthy 38.5% rise to $22.3 billion.

Moreover, the company has a significant foothold in the global EV charging market. Unlike some competitors who’ve built proprietary charging infrastructure, BYD has opted for partnerships, notably creating several charging hubs with Shell (NYSE:SHEL) in Europe and China, enhancing its market presence.

Looking to the future, 2024 is poised to be a critical year for BYD. The company’s global expansion plans are gaining momentum, with a new factory set to start production in Thailand. This move signifies BYD’s continuous evolution, reinforcing its position as a dynamic and forward-thinking player in the global EV arena.

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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