As the world shifts toward clean energy and green practices, the demand for electric vehicles etc related products and services has increased greatly. This has caught the attention of growth investors hunting for the best EV stocks. And while the sector has corrected sharply over the past year and a half, there’s no denying the potential of the companies at the forefront of the EV revolution.
The following names — two EV manufacturers and an EV-related service company — have strong long-term growth prospects and upside potential as private and public investment in the electric vehicle space increases.
Let’s dive in.
| NEVER | No | $8.25 |
| BYDDF | BYD company | $50.19 |
| CHPT | ChargePoint | $9.26 |
NOK (NOK)
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First on this list of owning the best EV stocks Is No (NYSE:NEVER), a leader in the Chinese electric vehicle market. Nio offers investors a pure play in the sector in the largest EV market in the world.
Like many of its peers, NIO stock has been hit hard, falling more than 40% over the past year as growth stocks have been re-rated lower. However, Nio is not your average early-stage EV manufacturer. Indeed the company has already demonstrated considerable manufacturing expertise. In the first two months of 2023 alone, the electric vehicle manufacturer delivered 20,663 vehicles, up 30.9% over the same period a year ago. In total, Nio has delivered 310,219 electric vehicles.
Nio’s recent financial results have done little to allay investor concerns. The company announced this $2.3 billion in sales and a Quarterly loss of 44 cents a share, both of which were worse than analysts expected. Management’s guidance for the current quarter also fell short of estimates. However, the company said it plans to deliver about 32,000 electric vehicles in the first quarter, up 24% from the midpoint of its guidance.
Although that of the company Revenue forecasts for the first quarter are modest, growth in shipments could boost revenue later in the year. For the full year 2023, analysts are forecasting that Nio will grow its revenue by 84% while its losses are expected to narrow.
The company has several positive catalysts to watch, including plans for a new EV factory for European exports and ongoing work on its mass-market product. The company also plans to launch five new models this year, complementing its existing range of three models and offering a wider range of price points that should appeal to more consumers.
The long-term prospects for Nio are positive. I think it’s one of the best EV stocks and a great buy-and-hold investment.
BYD company (BYDDF)
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Another Chinese electric vehicle manufacturer to make the list owning the best EV stocks BYD company (OTCMKTS:BYDDF). Powered by Warren Buffett, BYD is officially the world’s largest EV company considering both battery electric and hybrid vehicles. The company’s battery electric vehicle sales reached 911,141 in 2022, a remarkable 184% year-on-year growth. Plug-in hybrid sales reached 946,238, up 247%.
As forbes The company reportedly sells more vehicles than Tesla (NASDAQ:TSLA). BYD sold 1.62 million cars between January and November 2022, while Tesla sold just 1.37 vehicles in all of 2022.
BYD not only has a price advantage over Tesla, However, due to its aggressive global expansion plans, there is significant growth potential in several countries. The company has started selling electric vehicles in Japan, the world’s fourth-largest auto market. It also exports to India and Thailand and intends to invest $1.2 billion to build a battery factory in China. Additionally, the company is reviewing potential sites for a new electric vehicle assembly plant, with Vietnam, Indonesia and the Philippines all hoping to host the company.
BYD is financially stable and has strong growth prospects. Deliveries of vehicles, including hybrids, rose 119% year over year in February and up 28% from January. That kind of growth is hard to argue with.
ChargePoint (CHPT)
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This list is rounded off by owning the best EV stocks Is ChargePoint (NYSE:CHPT), a leading electric vehicle charging technology company with more than 200,000 active public charging stations worldwide. The company grows its market share in Europe and the USA in the commercial and residential charging market.
The demand for charging solutions for electric vehicles is likely to lead to pricing power in the future. With solid financials and scalability, this is a stock likely to outperform its peers. At less than $10 per share, I think CHPT stock has a lot of upside potential.
Analysts seem to agree. Accordingly TipRanks, the stock is a “moderate buy.” Their average price target of $16.57 implies a 79% increase from current levels.
On March 2, ChargePoint reported fourth-quarter and full-year results, including a loss of 13 cents per share. However, that was better than the 16 cents per share loss that analysts had been expecting. And while revenue missed estimates at $152.83 million, it rose 89% year over year. Even better, the company’s revenue grew 94% to $468 million in 2022, and annual subscription revenue surpassed $100 million for the first time.
After all, the goal of the US government is to have a network 500,000 public EV charging stations by 2030 is a big catalyst for ChargePoint. This is a company with strong backing and a secular tailwind that I think EV investors would carelessly ignore.
At the time of publication, Chris MacDonald held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
