The markets’ ability to distinguish between the leaders and laggards in the EV sector makes this year noteworthy. While some electric vehicle stocks, like Lucid Group, have plummeted, others have soared. This was inevitable given that periods of fierce rivalry are followed by periods of business failures and industry consolidation. Some of the top EV stocks, in my opinion, will keep rising in value in 2019 thanks to their solid financial results.
Three of the best EV stocks to purchase and hold are covered in this article. I have no doubts about my bullishness about these equities in 2024. Still, I wouldn’t think twice about keeping these electric car stocks until 2030. Multibagger returns from current levels appear to be supported by growth fueled by innovation.
Needless to say, industry tailwinds will continue to be favourable. Since electric car adoption is still in its infancy worldwide, the businesses under discussion are probably the front-runners. Let’s talk about why we should be optimistic about these stocks.
Five EV Stocks That May Soar in 2024
- Li Auto
Li Auto’s stock has resumed its upward trend following a setback brought on by profit booking. LI stock continues to be inexpensively valued at a forward price-earnings ratio of 30, despite its fantastic growth numbers. Next year, I would bet on the stock to return between 70% and 100%.
Li reported sales growth of 271.6% year over year for the third quarter of 2023, coming in at $4.6 billion. Vehicle gross margin was 21.2% within the same time period, and Li Auto recorded a strong $1.8 billion in free cash flow.
Furthermore, the company has excellent financial flexibility to pursue aggressive retail expansion in China because of its $12.13 billion in cash and equivalents. Together with supporting research and development efforts as Li Auto continues to introduce new models, the strong liquidity buffer will also help.
- Panasonic Holdings
Among EV battery stocks, Panasonic Holdings might be your best option. With a forward price-earnings ratio of 10.3, PCRFY stock appears attractive from a valuation standpoint. In addition, the stock has a 2.23% dividend yield.
Panasonic is a leading innovator as well. The company has some exciting breakthroughs coming ahead, such as solid-state batteries or higher battery densities. Drones’ entry into the solid-state battery market appears to be promising as well. These are long-term strategies, of course, but it also suggests that PCRFY stock may multibagger in the future.
- Tesla
With a 116% increase in value so far this year, Tesla stock has made a remarkable recovery. I think the bullish trend for TSLA stock is probably going to continue throughout the upcoming year.
The start of Cybertruck deliveries is probably going to be a growth driver starting in 2024. Within the following 24 months, the Tesla Roadster and Tesla Semi will also be released. In the next five years, getting into commercial EVs should prove to be profitable.
By 2030, Dan Ives, an analyst at Wedbush Securities, projects that Tesla‘s Supercharger network would provide between 3% and 6% of the company’s overall income. The valuations of this area will be affected in the upcoming years.
