In this article, we will discuss the 10 Most Oversold EV Stocks to Buy According to Analysts.
As per PwC, the race for EV adoption has been heating up, thanks to the tailwinds such as consumer interest, robust buy-in by automakers, and accelerated government funding. The electric transportation saw strong support from the 2021 Infrastructure Investment and Jobs Act – which finances $7.5 billion in EV charging infrastructure. Furthermore, the Inflation Reduction Act offered tax credits for new and used electric passenger and commercial vehicles.
What’s Next for EV Market?
As per Research and Markets, the EV market is anticipated to reach US$1.58 trillion in 2033 from US$600.13 billion in 2024. The growth is expected to be aided by increased public awareness, the requirement for reducing emissions, developments around battery technology, supportive government policies and incentives, and strong investments in renewable energy sources.
Governments and consumers continue to adopt EVs as a cleaner alternative to conventional ICE vehicles because of elevated concerns regarding environmental sustainability and the requirement to reduce greenhouse gas emissions, according to Research and Markets. Additionally, improvements in the electric car range, together with charging infrastructure due to battery technological developments, have been fueling industry expansion.
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Factors to Support EV Transition
As per Dentons, the Polycentric Law Firm, emerging markets (EMs) continue to be central to global EV adoption, courtesy of increased urbanization, government incentives, and economic growth. Notably, the investments in EV infrastructure and battery technology have been fueling wider adoption. Furthermore, local manufacturing and innovation, including cost-effective EVs and off-grid charging stations, have been bolstering economic development in local EV industries of EMs.
The flexible manufacturing platforms continue to support OEMs in adapting more efficiently to fluctuating market dynamics, like regulatory changes and changes in consumer preferences. Dentons believes that alliances with Chinese EV makers are expected to allow legacy OEMs to use advanced EV technologies, cost-efficient production methods, and well-established supply chains provided by Chinese OEMs. This can help facilitate the transition of legacy OEMs to electrification. Overall, 2025 might need flexibility, innovation, and adaptation in the broader automotive industry amidst economic pressures and evolving consumer expectations. Through using the advancements in EVs, Software-Defined Vehicles (SDVs), and manufacturing technologies, OEMs can place themselves well in the highly competitive and dynamic market.
With this in mind, we will now have a look at the 10 Most Oversold EV Stocks to Buy According to Analysts.
A lithium battery recharging a fleet of electric vehicles in a parking lot.
Our Methodology
To list the 10 Most Oversold EV Stocks to Buy According to Analysts, we sifted through several online rankings to shortlist the companies catering to the broader EV sector. Next, we chose the ones that have declined significantly over the past year and that analysts see significant upside to. Finally, the stocks were arranged in ascending order of their average upside potential, as of February 21. We also mentioned hedge fund sentiments around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Most Oversold EV Stocks to Buy According to Analysts
10. Toyota Motor Corporation (NYSE:TM)
% Decline Over 1 Year: ~25.4%
Average Upside Potential: ~25.4%
Number of Hedge Fund Holders: 13
Toyota Motor Corporation (NYSE:TM) is engaged in designing, manufacturing, assembling, and selling passenger vehicles, minivans and commercial vehicles, and related parts and accessories. Toyota Motor Corporation (NYSE:TM) remains focused on enhancing its EV business. On January 3, Toyota Motor North America reported 2024 US sales results. Notably, electrified Toyota and Lexus sales crossed one million units and increased 53% YoY, with electrified units making up over 43% of total sales volume. Furthermore, the company stated that 30 total electrified vehicles were available in dealerships between both the Toyota and Lexus brands, marking the highest number among any automaker.
Since 2020, Toyota Motor North America has announced new investments of ~$21 billion into the US manufacturing operations to support electrification efforts to address customer demand. Also, on February 5, Toyota Motor Corporation (NYSE:TM) announced that Toyota Battery Manufacturing North Carolina, which is the company’s first in-house battery manufacturing plant outside Japan, is well-placed to commence production and it will start shipping batteries for North American electrified vehicles in April. Notably, the ~$14 billion battery facility, Toyota Motor Corporation (NYSE:TM)’s 11th manufacturing plant in the US, is expected to produce batteries for hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). Therefore, the company’s investments in EV technology and manufacturing capabilities are expected to improve its market position and support it capture an increased share of the dynamic EV market.
9. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
% Decline Over 1 Year: ~21.4%
Average Upside Potential: ~26.4%
Number of Hedge Fund Holders: 10
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is engaged in manufacturing and selling premium EVs. As the company expands its product range, it is expected to benefit from economies of scale in production and R&D, improving its cost structure and competitiveness. Polestar Automotive Holding UK PLC (NASDAQ:PSNY) anticipates 2025 to be the strongest year in its history. The updated business plan aims at compound annual retail sales volume growth of between 30% – 35% for 2025 to 2027 and a positive adjusted EBITDA in 2025.
Furthermore, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) anticipates gaining commercial and operational momentum, further margin, fixed costs, and working capital improvements from 2026 onwards, with a positive FCF after investments anticipated in 2027. With Scandinavian design, performance, and a premium brand, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) has placed itself well in the global automotive market. The company has been accelerating its retail expansion and commercial transformation, while, at the same time, adjusting its future model line-up and substantially reducing its cost base. Moving forward, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) anticipates substantially increased revenue contribution from the sales of CO2 credits.
8. Stellantis N.V. (NYSE:STLA)
% Decline Over 1 Year: ~46.6%
Average Upside Potential: ~27%
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) remains a critical player in the broader EV industry as it has been actively expanding its EV offerings throughout its diverse brands. The company has formed a JV with Leapmotor, which is a Chinese EV brand. This alliance remains focused on leveraging China’s cost advantages in EV and battery production, and expertise in software and connectivity technologies, while reducing Stellantis N.V. (NYSE:STLA)’s direct EBIT exposure in the competitive Chinese market. This partnership can provide Stellantis N.V. (NYSE:STLA) with competitive production costs and advanced technology integration.
Furthermore, the benefits can extend beyond the Chinese market, allowing Stellantis N.V. (NYSE:STLA) to improve its global competitiveness in the broader EV space. It can use Leapmotor’s technology and production efficiencies in a bid to enhance the EV offerings in other markets. Stellantis N.V. (NYSE:STLA) has announced that it plans to increase the production capacity of electric drive modules (EDMs) by adding production in Szentgotthárd, Hungary, which is targeted to commence in late 2026. This will help the company grow its EV portfolio.
Notably, Stellantis N.V. (NYSE:STLA) will be investing more than €50 billion towards its electrification efforts in the upcoming decade to deliver on the Dare Forward 2030 targets of touching a 100% passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the US by the year 2030.
7. Albemarle Corporation (NYSE:ALB)
% Decline Over 1 Year: ~33.3%
Average Upside Potential: ~27.03%
Number of Hedge Fund Holders: 36
Albemarle Corporation (NYSE:ALB) is a critical player in the EV battery industry, mainly via its involvement in lithium production and supply. The company’s vertically integrated structure and low-cost assets continue to provide it with a competitive edge in the broader industry. Albemarle Corporation (NYSE:ALB)’s cost-cutting initiatives and productivity improvements can enhance its competitive position in the lithium market. It has proactively re-phased growth investments and reduced 2024 capex by more than $450 million YoY. The sustained position in the lithium market is expected to fuel growth for the company amidst the accelerated adoption of EVs.
Therefore, Albemarle Corporation (NYSE:ALB)’s growth is expected to stem from higher demand for energy storage solutions and EVs. The company has highlighted that global EV demand grew by 25% YoY in 2024, which was led by China. Notably, US EV sales have been benefitting from model availability and affordability, opines Albemarle Corporation (NYSE:ALB). While the near-term market remains dynamic, the long-term lithium demand drivers are intact, with battery costs below $100/kWh pack average, aiding EV affordability. The company also mentioned that grid demand continues to outperform, up 49% YoY in 2024, courtesy of installations in the US and China.
Therefore, as a leading supplier of lithium, Albemarle Corporation (NYSE:ALB) appears to be well-placed to benefit from long-term contracts with EV manufacturers. This can result in enhanced market position and revenues.
6. Honda Motor Co., Ltd. (NYSE:HMC)
% Decline Over 1 Year: ~24.1%
Average Upside Potential: ~32.4%
Number of Hedge Fund Holders: 14
Honda Motor Co., Ltd. (NYSE:HMC) is engaged in developing, manufacturing, and distributing motorcycles, automobiles, power, and other products. The company’s consolidated sales revenue for the 9 months ended December 31, 2024 went up by 8.9% to JPY 16,328.7 billion as compared to the same period last year mainly because of higher sales revenue in Motorcycle business and positive foreign currency translation effects. Honda Motor Co., Ltd. (NYSE:HMC)’s operating profit was mainly aided by higher profit attributable to price and cost impacts, which was partially offset by lower profit attributable to sales impacts and higher research and development expenses.
Analyst Elizabelle Pang from DBS remains optimistic about the company’s growth prospects as a result of a healthy market position and growth potential in the broader EV sector. Honda Motor Co., Ltd. (NYSE:HMC)’s strategic partnerships with established players such as GM and alliances with critical partners in battery and ADAS development place the company well in the emerging EV market. Also, EV Design & Manufacturing (EVDM) stated that Honda Motor Co., Ltd. (NYSE:HMC) is investing in enhancing its EV production operation in North America in a bid to strengthen its supply system. The company is establishing an EV Hub which will commence production of EVs along with existing ICE and hybrid-powered vehicles.
5. NIO Inc. (NYSE:NIO)
% Decline Over 1 Year: ~23%
Average Upside Potential: ~39.7%
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO) is engaged in designing, developing, manufacturing, and selling smart electric vehicles in China. The company’s introduction of new brands such as ONVO and Firefly reflects a strategic move to capture a significant market share of the Chinese EV market. Through the expansion beyond premium positioning, NIO Inc. (NYSE:NIO) possesses the potential to grow into broader consumer segments and significantly enhance the addressable market. The company delivered 13,863 vehicles in January 2025, implying a 37.9% growth YoY.
The deliveries included 7,951 vehicles from its premium smart EV brand, NIO, and 5,912 vehicles from its family-oriented smart EV brand, ONVO. Notably, the official launch of the Firefly model is anticipated in April 2025. The multi-brand strategy can enable NIO Inc. (NYSE:NIO) to leverage its existing technological expertise and brand reputation throughout various price points and vehicle categories. By providing a wider range of products, NIO Inc. (NYSE:NIO) can attract a more diverse customer base, which can enhance its market penetration. Its experience in the premium segment can provide a competitive edge in providing high-quality vehicles at accessible price points. This can differentiate the company from its competitors.
4. Volkswagen AG (OTC:VWAGY)
% Decline Over 1 Year: ~28.6%
Average Upside Potential: ~58.5%
Number of Hedge Fund Holders: N/A
Volkswagen AG (OTC:VWAGY) is engaged in manufacturing and selling automobiles. Citi analysts reiterated a “Buy” rating on the company’s stock. The optimism stems from discussions regarding government support for the broader European auto industry, which can erase some of the financial pressures from stringent car emissions standards. Germany proposed new EU-wide incentives for BEVs. Olaf Scholz, the German finance minister, hinted that the EU has been preparing a bloc-wide incentive plan for EVs. Such measures can reduce the net cost of BEV regulation to Volkswagen AG (OTC:VWAGY), supporting the company’s outlook.
Citi opines that such developments are expected to offer a much-required boost to the broader European auto industry, and by extension, to Volkswagen AG (OTC:VWAGY). Therefore, the reiteration of the rating demonstrates confidence in the company’s growth prospects. It published the deliveries for October to December 2024. Notably, BEV order bank in Western Europe came in at ~170,000 vehicles, partly fueled by new models like the VW ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric.
Charging, energy, and a sustainable energy supply infrastructure for all-electric vehicles remain critical prerequisites for accelerating the transition to battery-electric mobility. By 2025, Volkswagen AG (OTC:VWAGY) and its partners plan to create ~45,000 high-power charging points in Europe, China, and the USA. Therefore, higher EV adoption, investments in battery technology and charging infrastructure, and government support are expected to strengthen Volkswagen AG (OTC:VWAGY)’s position.
3. VinFast Auto Ltd. (NASDAQ:VFS)
% Decline Over 1 Year: ~28.1%
Average Upside Potential: ~61.2%
Number of Hedge Fund Holders: 5
VinFast Auto Ltd. (NASDAQ:VFS) is engaged in designing and manufacturing EVs, e-scooters, and e-buses. The company is focused on its growth strategy and on balancing revenue growth and optimizing costs. VinFast Auto Ltd. (NASDAQ:VFS) is committed to achieving its target of delivering 80,000 EVs by 2024 end, while, at the same time, continuing to improve its global footprint and fuel profitability. The company’s future growth is expected to be aided by strategic investments and an unwavering focus on improving operating efficiencies and production capacities.
VinFast Auto Ltd. (NASDAQ:VFS) has been working to improve its profitability while continuing to enhance its global footprint. As of October 31, 2024, it had 173 showrooms globally for EVs and 160 showrooms and service workshops for e-scooters, which include VinFast showrooms and dealer showrooms. VinFast Auto Ltd. (NASDAQ:VFS)’s acceleration towards a dealership model as part of its international strategy has been paying off.
Notably, September was a strong month for the company in North America, aided by a growing dealer network and improvements to its EVs. In November, the company commenced delivering the VF 9 to customers in the US and Canada. Therefore, the expansion of EV adoption and VinFast Auto Ltd. (NASDAQ:VFS)’s market entry strategies are expected to fuel international presence and sales growth.
2. Lotus Technology Inc. (NASDAQ:LOT)
% Decline Over 1 Year: ~81.9%
Average Upside Potential: ~94.6%
Number of Hedge Fund Holders: 11
Lotus Technology Inc. (NASDAQ:LOT) is engaged in designing, developing, and selling battery electric lifestyle vehicles. The company announced its preliminary vehicle delivery results for FY 2024. Lotus Technology Inc. (NASDAQ:LOT) delivered 12,065 vehicles in 2024, reflecting a YoY growth of more than 70% and boasting the top growth rate among leading luxury brands. In 2025, it plans to increase global deliveries by 20% with a 25% – 28% contribution from China.
Lotus Technology Inc. (NASDAQ:LOT) is focused on driving technological innovation to cater to broader market demand. It launched Hyper Hybrid EV technology, which is in line with the evolving market demands. The company remains optimistic to see strong progress in its intelligent driving business across the world with revenue of the business from customers other than Lotus increasing to $11 million with a YoY growth of 450%, making ~2% of total revenue.
While Lotus Technology Inc. (NASDAQ:LOT)’s gross margin for the first nine months of 2024 came in at 9%, declining 2 percentage points as compared to the same period of 2023 because of proactive management of the inventory due to trade protectionism, impact of inflation and macroeconomic uncertainties, high margin intelligent driving business managed to secure $130 million of total contract value to fuel future growth. Overall, the growth of the broader EV industry is expected to fuel demand for Lotus Technology Inc. (NASDAQ:LOT)’s luxury EVs because of its strong brand and advanced engineering.
1. LiveWire Group, Inc. (NYSE:LVWR)
% Decline Over 1 Year: ~75.0%
Average Upside Potential: ~211.1%
Number of Hedge Fund Holders: 11
LiveWire Group, Inc. (NYSE:LVWR) is engaged in manufacturing electric motorcycles. In 2024, the company took numerous initiatives in a bid to navigate the market dynamics and turned challenges into opportunities to place the business for 2025. LiveWire Group, Inc. (NYSE:LVWR) expects to reduce its cash burn by 40% or more in 2025 as compared to 2024. It remains focused on establishing its leadership in the broader EV space. In FY 2024, the company reduced its consolidated selling, administrative, and engineering expenses by $12.6 million from the completion of the development work on the S2 platform, and initiatives adopted during the year around streamlining of headcount.
LiveWire Group, Inc. (NYSE:LVWR)’s consolidated net loss came in at $93.9 million for the year ended 2024 as compared to $109.6 million for the year ended 2023. The decrease of $15.7 million was due to a decline in selling, administrative, and engineering expenses (offset by the decline in revenue) and a rise in non-operating income of $14.8 million (offset by a decline of $4.8 million in interest income in comparison to the prior year). For FY 2025, LiveWire Group, Inc. (NYSE:LVWR) anticipates electric motorcycle sales of 1,000 – 1,500 revenue units and an operating loss of $70 million to $80 million.
While we acknowledge the potential of LVWR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than LVWR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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