11 Best EV Stocks To Buy For The Long Term

7. Honda Motor Co., Ltd. (NYSE:HMC)

Average Analyst Price Target Upside as of September 11: 25.36%

Number of Hedge Fund Holders: 12

One of the best EV stocks, Honda Motor Co., Ltd. (NYSE:HMC) is making significant strides in the EV sector as it continues to align its efforts with a broader vision to achieve carbon neutrality by 2050. The company’s commitment to electrification is evident through its latest developments, including the unveiling of the all-new e:NP2 and e:NS2 at the 18th Beijing International Automotive Exhibition in April. The new models aim to enhance the EV experience with their advanced features, performance, and design.

Additionally, the stock has a consensus Buy rating as per the coverage of 19 analysts. As of September 11, the average price target of $38.84 implies an upside of 25.36% to the stock’s current price.

In the U.S., Honda (NYSE:HMC) has seen substantial growth in its vehicle sales, with August marking a significant increase. American Honda sold 139,950 units, showing a 25% rise from the previous year. The surge was driven by strong performances across its passenger car range and record-breaking sales of electrified models.

In the U.S., the company achieved all-time high sales of electrified vehicles, reaching 35,886 units, with strong contributions from hybrid-electric versions of the CR-V and Accord, as well as the newly launched Civic hybrid and Prologue EV. The all-electric ZDX also set a monthly sales record with 1,003 units, which is a sign of the growing demand for its electric offerings.

Honda (NYSE:HMC) was held by 12 hedge funds in the second quarter and the stakes amounted to $398.704 million. Fisher Asset Management has a position worth $326.202 million and is the most significant shareholder as of the second quarter.

Honda (NYSE:HMC) is focused on expanding its EV footprint to North America with a major investment planned for Ontario, Canada. In April, it announced a CAD$15 billion initiative to build a comprehensive EV value chain in the region.

It includes setting up an innovative EV plant and a standalone EV battery plant in Alliston, Ontario. The proposed facilities will also involve a cathode active material and precursor (CAM/pCAM) processing plant, developed in collaboration with POSCO Future M Co., Ltd., and a separator plant with Asahi Kasei Corporation.

The new EV plant is expected to have an annual production capacity of 240,000 vehicles, while the battery plant aims for a capacity of 36 GWh per year. Production is slated to commence in 2028.

The company is setting ambitious targets for the future of its vehicle lineup. It aims to have battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) makeup 100% of its sales by 2040. It fits well with the company’s broader goal of achieving carbon neutrality across all its products and operations by 2050.