These electric vehicle (EV) stocks picks had some of the best deliveries this quarter.
Due to the current economic downturn, a lot of people aren’t exactly lining up to snag the latest EV model. As such, EV makers have resorted to slashing prices to deal with declining demand. That has triggered a price war while straining the profitability margins for companies.
Meanwhile, the E.U. has imposed tariffs on Chinese EV exports to fend off competition from Chinese manufacturers, which the rest of the industry believes has an unfair advantage of being heavily state-subsidized.
Those are just some of the highlights of the current state of play for the EV industry.
In short, the EV market is ultra-competitive right now. Only the companies that innovate the best and sell the most will thrive. And if you’re looking to bet on EV stock, those are the companies to watch.
Here are the EV stocks with the best Q2 deliveries, which look pretty promising.
Nio (NIO)
Chinese company Nio (NYSE:NIO) had one of the strongest deliveries this quarter. The Shanghai-headquartered company delivered a total of 21,209 vehicles in June. That was a record 98% surge compared to the same month in 2023. This total included 11,581 premium smart electric SUVs and 9,628 premium smart electric sedans.
For the second quarter of 2024, NIO delivered 57,373 vehicles, which marked another year-on-year growth of 143.9%. It built this growth on its first quarter delivery. During the time, it marked a 134.6% increase in April compared to the year prior. Shares of the company notched around 10% in July on the news.
This strong performance illustrates Nio’s aggressive inroads into both the domestic and international EV market and why it’s been described as the ultimate threat to auto companies in the U.S. and Europe.
Shareholders are waiting to see if second-quarter results will be anything like its deliveries. In the meantime, it’s clear Nio is on a winning streak.
Rivian Automotive (RIVN)
EV maker Rivian (NASDAQ:RIVN) produced 9,612 vehicles and delivered 13,790 this quarter, topping analysts’ expectations. With 13,790 vehicles delivered, the company is up 9% from a year ago.
And though production dipped from the same period last year, when the company delivered 13,992 vehicles, deliveries jumped from the previous year’s 12,640 vehicles.
The California-based firm reaffirmed its annual production goal of 57,000 vehicles for the full year.
Rivian shares rose by 7%, closing July 2’s session at $14.89 — its highest level since mid-Feb. The company’s stock has received a drubbing this year amid wider industry challenges. But it’s also thanks to being overshadowed by bigger industry names such as Tesla (NASDAQ:TSLA)
Rivian investors will get a clearer picture of the company’s performance when Q2 financial results come out on August 6. Until then, this good news should keep them happy.
General Motors (GM)
While other auto manufacturers companies are slowing down EV production this year due to low demand, General Motors (NYSE:GM) is staying on track with its production schedule of over 200,000 EVs this year.
This month, the company reported 21,930 deliveries of EVs in the second quarter — a 34% increase over the first quarter and a 40% from 2023. That can be attributed to the strong performance of its electric Hummer, which added a 76% increase in sales over the previous quarter. In addition, the Cadillac LYRIQ, an electric SUV, also performed well, with sales rising by 26% from the first to the second quarter.
General Motors also saw retail EV registrations rise 17% year-to-date — significantly outpacing the retail industry’s 10% gain.
To offer consumers more choices and strengthen its inroads into the niche, the company plans to roll out 10 EV nameplates. With these developments, General Motors’ stock price could shoot further. Shares are up 30% this year.
On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the stocks mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.