It is undeniable that the world is shifting to electric vehicles. Major automakers have substantially ramped up their production, with certain companies even doubling their annual output. It’s prime time to invest in the best EV stocks now, because, in the future, almost every driver will be behind the wheel of an electric vehicle.
Without further ado, here are three great electric vehicle stocks that offer strong financial performance, unique models, and a chance at further growth.
BYD (BYDDF)
BYD (OTCMKTS:BYDDF) has solidified its reputation in both the automotive and clean energy sectors, emerging as a formidable player.
Renowned for manufacturing automobiles, buses, and batteries, its financial performance in the first half of 2023 has been exemplary. Sales surged, with 1.25 million vehicles sold. This led to a tripling of profits for the first six months of the year. By the third quarter of 2023, its net profit soared to 10.41 billion yuan, marking an 82% increase from 2022. Revenue increased by 38.5% to 162.2 billion yuan.
Adding to its portfolio, BYD’s electronics division recently secured a significant deal with U.S. company Jabil (NYSE:JBL). This 15.8-billion-yuan deal entails the acquisition of Jabil’s mobile electronics production business in China, a move that positions BYD for further growth in both the electronics and transportation sectors.
Li Auto (LI)
Li Auto (NASDAQ:LI), a Chinese giant in the EV industry, continues its swift ascent. One of its perks is that its vehicles feature extended ranges. These vehicles harness electric power, and once the battery drains, a gasoline engine supplements the energy needs, effectively increasing the driving range.
Financially, Li Auto has also showcased stellar performance. Its stock is up an impressive 60% YTD. The company’s EPS for the latest quarter stood at 36 cents. From a GAAP perspective, EPS amounted to 30 cents. Moreover, Li Auto recorded revenue of $3.98 billion in Q2.
Adding to its achievements, Li Auto recently disclosed the delivery of 36,060 vehicles in September, marking a year-over-year increase of 212.7%. The company’s ambitions are clear, with plans to launch new models in the upcoming year. Plus, the highly anticipated Li MEGA is set for a December release. This vehicle, priced over 500,000 yuan, is anticipated to be one of China’s top-selling cars.
Given its trajectory, analysts project a bright future for LI stock. That is good news for EV investors.
Tesla (TSLA)
Despite disappointing financial results in Q3, Tesla (NASDAQ:TSLA) remains the leading EV manufacturing company in the world, with a market cap above $600 billion. Its target to deliver 1.8 million vehicles by the end of 2023 remains unchanged, which shows Tesla’s resilience in the face of market fluctuations.
However, CEO Elon Musk expressed caution about the state of the global economy. He emphasized the company’s focus on making its cars more affordable.
But analysts are hopeful that the company will perform better in the future. They also believe that Tesla’s stock is undervalued now and that the company is well-positioned to benefit from long-term growth in the EV market.
In addition, Tesla is ready to introduce its game-changing product, the Cybertruck. With its sharp design and elegant look, consumers already like it. This new product launch is expected to strengthen Tesla’s position in the EV market. Thus, investors should buy Tesla stock now to benefit from the post-Cybertruck rally.
On the date of publication, Nauman Khan 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.