As the automobile industry undergoes a transformative shift, the demand for electric vehicles continues to surge. In this in-depth analysis, we unveil three exceptional EV stocks that have gained significant support from multiple billionaire investors. This presents an exciting opportunity for those seeking the future of transportation.
EV Stocks Forecast:
The electric vehicle (EV) revolution is on the rise, with the International Energy Agency (IEA) projecting global EV sales of approximately 14 million by the year end. All over the world, governments are using national policies and taking measures to increase the popularity and drive sales of EVs.
As the United States targets a 50% market share for electric cars by 2030, the European Union aligns itself with similar ambitions. The rising global investments in EVs are set to increase competition among players in the industry.
EV Investments: A Smart Choice?
While the growth potential of the EV market is undeniable, not every company in the sector is guaranteed success. As an investor, the task lies in locating the best EV stocks to buy. The current time calls for a careful eye to identify which EV stocks are most likely to provide fruitful returns. It’s time for investors to consider loading up on the most promising EV stocks available.
Tesla (TSLA:NSD):
CEO Elon Musk’s Tesla emerges as an undisputed leader in the EV sector. Headquartered in Texas, it has been in the business since 2003. However, it has gained more popularity in recent years with the innovation of EVs.
Tesla Stock Forecast:
With (TSLA:NSD) surging to USD 219.22 in recent trading, a remarkable year-to-date increase of 145% has been shown. The average analyst target is USD 232.2 with an upside potential of 2.85%. Tesla has a huge market CAP of 769.08 Billion.
The company posted revenue of $24.9 Billion and earnings per share (EPS) of $0.78. Furthermore, Tesla achieved the remarkable feat of producing 480,000 cars in the quarter, marking an impressive 86% year-over-year growth. Benefiting from a favorable market and a strong earnings season, Tesla’s financial performance has been nothing short of exceptional.
TSLA stock, however, is highly volatile. It is overpriced as well compared to its peers but has been giving superior returns on assets in the past 4 quarters. The analysts view the stock as slightly bullish and rate it as “Buy.”
Tesla’s Future Challenges:
The company’s decision to reduce car prices due to inflation has temporarily impacted gross margins. However, a potential rebound in the coming quarters is expected. Tesla’s strategic move to open its charging network to other EV makers highlights its commitment to collaborate across the sector. With expansion into India, Tesla remains to have a high-growth potential.
Li Auto (LI:NSD):
Li Auto Inc. (LI:NSD) stands as another strong competitor in the EV sector. Based in China, it was formerly known as Leading Ideal Inc. It was founded in 2015.
LI Stock Forecast:
With the current price of the stock soaring to USD 40.82, it reflects a 118% year-to-date increase. The average analyst target is USD 40.79 with a downside potential of 0.07%. The company has a market CAP of USD 40.05 Billion.
(LI:NSD) recorded an impressive 227% year-over-year rise in July deliveries. Consistently expanding its presence in the Chinese market, Li Auto has an ambitious target of 40,000 monthly deliveries in Q4. This could add another layer of its growth potential.
It is recommended as one of the best EV stocks to buy as it has high volatility, high market CAP and a positive cash flow. The top analyst at Bank of America Merrill Lynch has maintained the rating of Buy on the stock as she raised the price target from USD 56 to USD 60. The analysts’ consensus on the stock is slightly bullish while they rate it as a “Strong Buy”.
LI Stock Future Plans:
Demonstrating resilience even in times of inflation, Li Auto has delivered consistent growth. The upcoming launch of the Li MEGA model in Q4, coupled with strong government support, could further heighten the company’s market share.
BYD Company (BYDDF:OTC):
Warren Buffet-backed BYD Co. (BYDDF:OTC) emerges as another competitor, challenging Tesla’s supremacy. BYD Company Limited is a powerhouse in the Global EV Landscape. Founded in 1995, it is also headquartered in China.
BYDDF Stock Forecast:
As a key player in the Chinese and global markets, BYD boasts impressive figures. The company outperformed Tesla’s numbers delivering over 700,000 new energy vehicles in Q2. About half of them were fully electric.
BYD Co. has positioned itself as the second-largest EV battery supplier. BYD’s Blade Batteries have gained popularity in the industry for their performance and durability. With consistent delivery records and a stock trading at USD 29.40, the company has shown a 33% YoY growth.
Viewed as slightly bullish by analysts, it has a market CAP of USD 86.36 Billion. BYD Co.’s expansion strategies and market presence showcase its potential in the ever-rising EV market.
Conclusion:
In the evolving landscape of EV investments, these three companies are considered to have the best EV stocks to buy for investors. They have caught billionaires’ attention as their prime choices. The dynamic EV market promises growth and innovation. However, the key lies in recognizing the players who will make significant returns out of this potential.
