Best EV Stocks For 2024 – CleanTechnica

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With the turn of the new year comes a media frenzy about which stocks will significantly outpace the rate of inflation. Portfolios are filled with ratios where promise drives earnings and investors who look to companies that have above-average earnings, stable or growing profitability, and a robust current price. Analysts across media outlets are applying their personal tried-and-true versions of these criteria right now to determine the best EV stocks for 2024.

Let’s look at what kind of analysts’ consensus is building around different battery electric vehicles and their distant cousins, plug-in hybrids, to determine the likely best EV stocks for 2024 and some of the reasons why these are flourishing — at least in media analysts’ minds.

With a new-found impetus about substance over splash in the top EV stocks, investors are “demanding profitability, sustained production growth, and a clear path to dominance in a crowded field,” according to Jeff Reeves in US News and World Report. He explains that several EV manufacturers, even when the transition to EVs is uncertain, “are still thriving as they put up impressive numbers to justify their stock prices.”

Dan Ashmore of Forbes Advisor says the rise in scrutiny about EVs among US consumers offers “a direct way for citizens to reduce their carbon footprint” at a time when climate change could cause an additional 250,000 deaths each year.

Because of the effects of emerging scenario of low inflation for EV makers, Vandita Jadeja at Investor Place suggests that “now is the best time to consider the best EV stocks to buy.”

Hedge fund interest has framed the best EV stocks for 2024 list that Ramish Cheema of yahoo!finance has designed, with some candidates shining more brightly than others.

Which investments for the best EV stocks for 2024 do most of these investigators have in common? What potential EV companies or their subsidiaries have a few of these analysts missed? Let’s sort among the players and see.

Nearly the Best EV Stocks of 2024

The following EV stocks were identified as having potential but not at the absolute top of the best EV stocks to choose for 2024.

Volkswagen AG: Volkswagen, with some plug-in hybrids alongside its dedicated EVs, has annual production approaching 9 million vehicles. Volkswagen is a company with proven production capacity and a global brand. It delivered 45% more battery EVs through September, 2023, delivering 531,500 units globally compared to 366,600 units during the same period previous year. It is clearly making the transition to EVs.

XPeng Inc: With a $12 billion valuation, XPeng is a Chinese EV company that makes and sells SUVs, sports sedans, and family sedans. XPeng’s November deliveries jumped by 245% annually as it continued to unlock demand. While legacy automakers in the US are all sixes-and-sevens over the transition to EVs, Chinese EV company Xpeng told CNBC this month that its newly launched X9 model could be a “game changer” for the industry. Yet, while Xpeng managed to close in the positive column last year, the stock has since fallen from its 2023 highs. The shares look pale in 2024, as well; they’ve lost more than 14% so far this year and are down over 23% in the last 3 months.

Ford Motor Company: Ford is a legacy car company that continues to expand its EV catalog. The company has been in a battle with many of its dealers, who have refused to sell EVs in 2024 — that refusal eliminates dealer requirements to engage in EV training and equipment. The Ford F-150 Lightning qualifies for the full $7,500 US tax credit, while the Escape and Lincoln Corsair Grand Touring plug-in hybrids are eligible for the $3,750 amount. Ford, though, agreed to a stake in an Indonesian nickel mining project in December, 2023, which will support its supply chain. While Ford’s stock valuation has fluctuated this week, like so many others, it continues to maintain a bullish sentiment in the market.

General Motors Company: GM is another legacy automaker that has had difficulty navigating the EV landscape. The company announced a $10 billion accelerated share repurchase (ASR) program and its intention to increase its common stock dividend by 33% beginning with the January, 2024 declaration. It’s making several changes to its product development team and creating a new role to oversee its global regions. Kristen Siemen, GM’s chief sustainability officer, acknowledged at COP28 that a robust EV infrastructure is necessary to create lines of profitable plug-in passenger vehicles. In the most recent trading session, GM closed at $35.39, indicating a slight positive shift from the previous trading day.

Rivian Automotive, Inc.: Rivian is a US firm focusing on electric SUVs and trucks. With a 52 week range from $11.68 to $28.06, it has stayed solid and beaten analyst estimates in recent quarters. The stock is rated neutral to buy on average. Baird designated Rivian as a “best idea” for 2024. The Motley Fool says that Rivian needs to slow down its cash burn, continue its production growth, and chart a path toward profitability.

Best Runner Up EV Stock Award Goes to…

Tesla Inc.: Tesla stock ranks as one of the 10 largest US-listed companies by market capitalization. Tesla, however, continues its valuation roller coaster ride. Sure, it holds the biggest name in the EV industry, and Cathie Wood’s Ark Invest team forecasts that EVs aren’t going to be pulling the Tesla weight by 2027; instead, they say AI will become the prominent profitability measure for Tesla. That makes investors listen, as Ark Invest has historically owned the largest stake of Tesla, worth up to $1 billion. Tesla’s 2024 profit expectations have sunk 43%, according to data compiled by Bloomberg, which concludes that “Wall Street’s outlook on Tesla Inc. is darkening rapidly.” The New York Times noted that Tesla CEO Elon Musk said late Monday that he needed to own 25% of Tesla to avoid takeovers and have enough control of the company as it develops robots and other artificial intelligence technology. But, if the company doesn’t fulfill his demands, he may have to pursue unspecified ventures outside of Tesla. More distractions?

The Best EV Stock for 2024

Li Auto Inc: Li currently sells hybrid vehicles and is ready to begin production of its first fully electric vehicle in February. Li Auto was profitable in the first three quarters of 2023 and all indications are that it will remain profitable through 2023 analysis. The company’s CEO said earlier this month that the company will challenge annual deliveries of 800,000 units and monthly deliveries of 100,000 units in 2024. Li announced that it plans to launch its flagship multi-purpose vehicle, called Li MEGA, on March 1. The automaker has stated that the MEGA MPV would be the first model produced at its Beijing plant, which has a design capacity of 100,000 units a year. Then again, Li Auto has lost 12% so far this year, as a continuing price war and intensifying competition in the market have squeezed profitability for China’s EV makers. Many analysts continue to argue that the financial health and growth prospects of LI demonstrate its potential to outperform the market.