Buy These 3 EV Stocks to Bet on the Next BYD

Stocks to buy

The U.S. saw a record 1.2 million EV sales in 2023 amidst high inflation and interest rates and a drop in EV demand. However, this gives us pause to consider the effects of low inflation for EV makers. Now is the best time to consider the best EV stocks to buy.

Further, new leader BYD (OTCMKTS:BYDDF) dethroned Tesla (NASDAQ:TSLA) as fourth quarter EV sales surged. So, if BYD and Tesla are still too expensive for your wallet, now is the time to identify more affordable stocks that could become the next EV champion. Let’s examine three such companies for 2024.

Li Auto (LI)

Source: Robert Way /

Li Auto’s (NASDAQ:LI) steady revenue growth surpassed expectations, with proof in December delivery numbers of 50,353 vehicles, a 137% year over year (YOY) increase.

And, for the quarter, the deliveries came in at 131,805, up 184% YOY. LI is hitting new milestones on its path of best quarter ever. For Q4, it expects revenue range between $5.27 billion to $5.40 billion. 

Recently, it announced a new partnership with the tech giant Nvidia (NASDAQ:NVDA) for autonomous driving. Nvidia’s centralized car computer DRIVE Thor will power the upcoming fleet of Li Auto, and it could work as a catalyst this year. The computer will include multiple functions in the single AI platform and could boost car sales. 

LI stock is trading at $31, appearing undervalued and feasibly doubling in 2024. The company plans to launch Li Mega MPV on March 1, with deliveries beginning a few days afterward. This will likely boost stock price. Back in November, LI had over 10,000 units reserved within the first two hours after pre-sales began. Li’s future looks bright.

Volkswagen (VWAGY)

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If you want to make the most of the global transition towards EVs, it is time to consider Volkswagen (OTCMKTS:VWAGY). The company is already recognized worldwide.

With years of experience and global standing to the EV sector, and it looks cheap currently. Once the industry improves and demand rises, we could see the stock move higher. Known for sophisticated cars with a strong range, VWAGY is considered value for money. It aims to produce 3 million small EVs between 2025 to 2030 at its two plants in Spain.

Volkswagen’s impressive sales of 531,500 all-electric vehicles in the first nine months of 2023 shows a 45% YOY increase. The revenue came in at $255.1 billion for the first three quarters, and the operating profit stood at $20.3 billion for the same period. The industry may have seen a slower EV demand, but Volkswagen knows this is temporary. Further, it is launching the third EV which is a sedan with a range of 300 miles. 

VWAGY is a good play as the industry gears up for a strong year, and buying the stock at the current level could be a solid move.

General Motors (GM)

Source: quiggyt4 /

General Motors (NYSE:GM) suffered due to the drop in EV demand. Even potential investors started doubting the company’s ability when Warren Buffett exited his position in the company. But a lot is working in favor of the automaker. Recently, GM boosted its dividend, a move companies usually make when it has control of their finances. 

General Motors’ newest quarterly results proved the same. It reported a revenue of $44.13 billion, up 5% YOY and the EPS increased to $2.28, up 1%. The company saw a rise in cash, total assets, and short-term investments, showing its resilience in an uncertain market. It has enough liquidity to continue investing in the business as it focuses upon autonomous technology. 

GM reinstated the full-year earnings guidance and announced a $10 billion share buyback program with a 33% rise in the dividend. It enjoys a dividend yield of 1.02% and paid a quarterly dividend of $0.09. The company had to suffer due to the cost of the Union Auto Workers strike, but that is temporary. So, it will be able to deliver profits in the year. Also, the stock is trading at $35 but has gone past the days when it was as low as $26.

If the company can manage to improve the EV lineup, we could see a significant rise in profit. While General Motors is on its way to the top, it’s a dividend stock that sets itself apart from the other EV stocks. 

On the date of publication, Vandita Jadeja did not hold (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 Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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