3 EV Stocks to Buy as EV Sales Keep Growing

Stocks to buy

There’s a lot of confusion about EV sales as the sector struggles through a downturn. I believe some people are under the impression that EV sales are in decline. That isn’t the truth. Instead, EV sales continue to grow and are expected to increase by 22% in 2024. This means there are plenty of EV stocks out there to buy as sales grow. 

If true, the growth won’t be as high as the 35% achieved in 2023. However, there are plenty of things to celebrate. For example, there are a lot of cheaper models entering the market.

I believe investors should look at a few lithium firms at the moment as well as one of few profitable EV manufacturers. Lets look at three EV stocks to buy as sales grow.

Lithium Americas (LAC)

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Lithium Americas (NYSE:LAC) will face a lot of questions about its long-term viability as time passes. Investors continue to wonder if the company can develop the Thacker pass resource to its full potential. If the company does, its stock has 10x potential and more. It sits on one of the biggest lithium resources globally and can grow to become a vital link in the EV supply chain.

Yet, with the collapse of lithium prices investors Wonder if the company will have a market to serve over the long term. Given the positive EV sales forecast this year, it’s likely that lithium sales will return.

It’s actually more of a question of when than if. and that’s why I believe investors should consider investing in Lithium Americas at the moment. The company is well funded with strategic investments from General Motors (NYSE:GM) and the U.S. Department of Energy. Lithium prices are going to rebound by late 2024 or sometime in 2025. LAC will be pulled higher and easily has the potential to double by that time. Maybe It ultimately fails but it is highly unlikely for that to occur within that time frame.

Albemarle (ALB)

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EV sales continue to grow while Albemarle (NYSE:ALB) stock continues to trade sideways. The company is the largest producer of the lithium that is central to EV battery production. The company led the charge within the sector. It was anticipated to continue growing at a rapid pace. Many worried that lithium producers would not be able to keep up with demand. Ultimately, the opposite proved to be true. The result was that Albemarle and every other EV stock fell off a cliff.

Well, the commodities world is one that is known for its volatility. It could therefore have been expected that the unexpected might arise. regardless, Albemarle is now highly discounted relative to its former prices. That’s not the most positive sign but there are positive positives to take from the situation. For example, Albemarle is a strong dividend stock. investors could establish a position now, enjoy the dividend income, and continue to do so in anticipation of rebounding prices as lithium prices normalize.

Li Auto (LI)

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Li Auto (NASDAQ:LI) is a company that has managed to do something that very few others within its sector have. It is profitable which is a great reason to consider investing in the EV stock.

In fact, Li Auto has been profitable In each of the last three quarters. That isn’t something a lot of its peers can say while those competitors do boast impressive growth especially in regard to deliveries, they aren’t as well-rounded as Li Auto because of that continued profitability.

I’d suggest that any readers interested in EV stocks take a deeper look into Li Auto’s most recent earnings report. Those who do so are bound to be impressed by the incredible growth metrics contained therein. The company delivered More than 376,000 vehicles in 2023. That nearly tripled the number of deliveries by the company a year earlier. The result is that the earnings report is peppered with metrics that increased by triple digits in the most recent quarter and over the last year.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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