In this article, we discuss the 11 best EV stocks to buy for the long term. We also discuss the challenges faced by the industry along with the outlook of EVs.
The Challenges of EV Adoption and the Promise of Solid-State Batteries
On August 30, Mark Fields, former Ford CEO and President joined CNBC’s ‘Squawk Box’ to discuss the challenges facing electric vehicle (EV) adoption. Fields pointed out that early enthusiasm for EVs was driven by automakers and government regulations, but mass adoption is proving more difficult. Consumers are hesitant due to several factors including the high cost of EVs, the lack of visible and convenient charging infrastructure, and the slow charging times compared to gas refueling.
Fields suggested that automakers need to offer more affordable EVs and expand hybrid offerings while working towards breakthroughs in battery technology, especially solid-state batteries. These batteries could eventually reduce charging times to match the convenience of filling up at a gas station.
Fields commended his former company’s strategy as it involves focusing on hybrid models to ease consumers into EV technology without the range anxiety that comes with current models. He noted that automakers are also facing financial challenges in the EV space, as shown by his former company’s recent writedowns.
He emphasized that while automakers are working on delivering low-cost EVs, the real game-changer will be the development of solid-state batteries, which could significantly improve charging times and consumer convenience.
Exploring Three Scenarios for the Future of EVs
Despite the challenges, the EV industry seems inevitable and is poised to grow over the next few decades. We discussed the International Energy Agency’s (IEA) EV outlook in our article about the best EV stocks according to short sellers. Here is an excerpt from it:
“The IEA’s Global EV Outlook 2024 examined the potential paths to electrifying road transport by 2035. The report presents three scenarios: the Stated Policies Scenario (STEPS), the Announced Pledges Scenario (APS), and the Net Zero Emissions by 2050 Scenario (NZE). The STEPS considers current policies and market trends, the APS assumes that all government pledges will be fully implemented on time, and the NZE outlines a pathway to achieve net zero CO2 emissions by 2050.
The projections show that the global EV fleet could grow significantly by 2035. Under the STEPS, the number of EVs is expected to increase from less than 45 million in 2023 to 525 million by 2035. In the APS, this number could reach 585 million, while the NZE Scenario projects a more ambitious growth to 790 million EVs by 2035.
The report also discussed the growth of electric light-duty vehicles (LDVs), buses, and two/three-wheelers (2/3Ws). LDVs, which include passenger cars and light commercial vehicles, are expected to remain the largest segment of the EV market. Electric buses and 2/3Ws are also projected to see significant growth, especially in regions like China and India, where policy support is strong. However, achieving full electrification of these segments will require continued policy support and technological advancements.”
Moreover, governments worldwide are pushing for increased EV production due to environmental concerns, with the U.S. making significant moves in this direction. On July 11, the Department of Energy (DOE) announced $1.7 billion in grants to support the conversion of 11 auto manufacturing plants in eight states to produce electric vehicles and their components. This is part of President Biden’s “Investing in America” initiative, which is aimed at protecting union jobs and giving a boost to EV manufacturing.
The program is funded by the Inflation Reduction Act and will preserve over 15,000 union jobs and create nearly 3,000 new ones, which will support the production of EV components like batteries and electric motorcycle parts.
With that, we look at the 11 Best EV Stocks To Buy For The Long Term.
11 Best EV Stocks To Buy For The Long Term
Our Methodology
For this article, we used screeners and ETFs to identify 22 EV manufacturers with a market cap of above $50 million and narrowed our list to 11 stocks with the highest average analyst price target upside, as of September 11. We took analyst comments mostly from The Fly and TipRanks. We also added the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Best EV Stocks To Buy For The Long Term
11. NIO Inc. (NYSE:NIO)
Average Analyst Price Target Upside as of September 11: 12.70%
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO) is a Chinese multinational automobile manufacturer headquartered in Shanghai that specializes in designing and developing EVs. The company was founded in 2014 and has grown significantly in both domestic and international markets. The company’s notable vehicles include ET7, ET5, ES8/EL8, ES7/EL7, and EC7 along with some others.
The company is also known for its battery-swapping technology. It has installed over 2,552 battery swap stations in China, which positions it as a unique player in the EV industry.
With its presence in markets such as China, Norway, and Germany, the company continues to scale operations. It has also launched its new electric car brand, ONVO, which targets the mainstream market. In May, ONVO launched its first vehicle, L60, which is a smart electric mid-size family SUV. The company plans to start its deliveries in the third quarter of 2024.
In addition to its focus on EVs, NIO (NYSE:NIO) has expanded into semi-autonomous and autonomous vehicle technologies, which further improves its role in the mobility space. It is also a prominent name in the EV charging infrastructure market with nearly 4,000 Power Charger Stations and 23,256 chargers. It is also linked to more than 1.6 million third-party chargers. Additionally, the company has completed over 51 million battery swaps to date. It is also one of our best EV charging stocks.
NIO (NYSE:NIO) has been covered by 37 analysts with an average price target of $6.31, which represents an upside of 12.70%, as of the September 11 market close.
TipRanks reported that on the same day, Citi analyst Jeff Chung maintained a Buy rating on NIO (NYSE:NIO) with a $7 price target. The analyst’s outlook is based on recent strategies by the company to boost consumer interest, including increased incentives for car purchases without hurting its finances much.
It includes developments like the 50% increase in charging and battery swap services. At the same time, it is slightly cutting back on direct cash discounts, which means customers get more valuable services instead of just price reductions.
In the second quarter, 20 hedge funds held stakes worth $82.117 million in NIO (NYSE:NIO). Point72 Asset Management is the most significant shareholder of the company and has a position worth $26.89 million, as of June 30. It ranks at 11 on our list of best EV stocks to buy for the long term.
10. General Motors Company (NYSE:GM)
Average Analyst Price Target Upside as of September 11: 22.01%
Number of Hedge Fund Holders: 72
General Motors Company (NYSE:GM) is one of the biggest car manufacturers in the world. The company owns popular brands like Chevrolet, GMC, Cadillac, and Buick. Besides these American brands, GM has important stakes in Chinese car brands Baojun and Wuling through a partnership with SAIC. The company also makes delivery vans, defense vehicles, and auto parts.
General Motors (NYSE:GM) is steering toward a fully electric future with its Ultium Platform, which is designed to offer exceptional power, range, and performance across a diverse lineup of vehicles including cars, SUVs, and trucks.
Some important innovations in the company’s electric technology include Ultifi, a software platform that delivers over-the-air updates, in-car subscription services, and app integrations to keep vehicles up-to-date and tailored to individual preferences.
Features such as One Pedal Driving simplify the driving experience by allowing the vehicle to slow down and stop using only the accelerator, while Regen on Demand captures and stores kinetic energy during deceleration to extend battery life and reduce brake wear. Additionally, the myChevrolet Mobile App offers tools for managing range and locating charging stations, which further support the transition to electric driving.
In addition, General Motors’ (NYSE:GM) subsidiary, BrightDrop is transforming the delivery industry through electric vehicles and innovative logistics solutions. It offers a suite of products designed to enhance efficiency in first- and last-mile delivery operations. Its flagship offerings include the Zevo 600, a state-of-the-art all-electric delivery van, and the Trace, an electrically powered cart designed for short-distance transport.
General Motors (NYSE:GM) is also investing its resources in the EV charging industry. The company has long collaborated with EVgo (NASDAQ:EVGO) in the sector and has recently announced the expansion of their collaboration to significantly enhance EV charging.
The companies recently announced the installation of 400 high-speed charging stalls at key locations across the U.S. The flagship stations will be equipped with advanced features including 350kW chargers, lighting, canopies, and pull-through access, in order to create a more convenient and secure charging experience for electric vehicle drivers. The new charging hubs, co-branded by EVgo and GM Energy, will be strategically located near amenities such as retail centers and dining options.
General Motors (NYSE:GM) is one of the best EV stocks to buy for long term as it has been covered by 30 analysts with a median price target of $54.50. The median shows an upside of 22.01% from current levels on September 11.
In the second quarter, the company’s stock was owned by 72 hedge funds at a combined stake value of $4.07 billion. As of June 30, Harris Associates is the stock’s largest shareholder with 34.36 million shares worth $1.6 billion.
Diamond Hill Large Cap Strategy stated the following regarding General Motors Company (NYSE:GM) in its first quarter 2024 investor letter:
“Other top contributors included Allstate, Caterpillar and General Motors Company (NYSE:GM). Automobile manufacturer General Motors continues capitalizing on the shift to electric vehicles (EVs) while maintaining the strength of its core gas-engine truck and SUV business. Though it has experienced some setbacks — such as needing to roll back its Cruise driverless car project — we believe the company remains well-positioned relative to secular tailwinds within the automobile business.”
9. Niu Technologies (NASDAQ:NIU)
Average Analyst Price Target Upside as of September 11: 22.75%
Number of Hedge Fund Holders: 4
One of the best the best EV stocks to buy, Niu Technologies (NASDAQ:NIU) offers a diverse portfolio that includes electric motorcycles, mopeds, bicycles, and kick-scooters, designed to meet various urban travel needs. The lineup features several series such as the RQi, NQi, MQi, SQi, UQi, and Gova for scooters and motorcycles, the KQi series for kick-scooters, and the BQi series for e-bikes.
In late 2022, the company introduced the BQi-C3 Pro Electric Urban Commuter Bike, known for its dual battery system that allows it to reach speeds of up to 28 MPH and cover distances of 40 to 60 miles on a single charge.
Building on this momentum, the company launched its first fully electric dirt bike, the NIU XQi3, in late 2023. The model caters to both urban and off-road use, featuring a robust 72v32Ah LG lithium-ion battery and a peak power output of 8000 watts. Additionally, in September, the company announced its plan to roll out the KQi 100 series of electric kick scooters, which will be available at major retailers such as Walmart, Best Buy, and Kohl’s.
A key development in Niu’s (NASDAQ:NIU) growth strategy came in July with a significant retail expansion. The company partnered with Best Buy to distribute its electric kick-scooters and e-bikes in over 800 stores across the United States. It aims to increase the visibility and accessibility of the company’s products, promote eco-friendly transportation, and make a substantial impact in the urban mobility sector.
In August, the company reported a 13.5% increase in revenues year-over-year, reaching RMB 940.5 million. During the same period, sales of e-scooters surged by 20.8% year-over-year, with a total of 256,162 units sold.
The number of franchised stores in China also grew, reaching 3,124 by June 30. According to CEO Dr. Yan Li, new product launches this year have been successful, contributing to over 50% of the company’s growing domestic sales in the first half of the year. It is this success that shows the company’s effective approach to meeting diverse consumer demands and strengthening its position in the Chinese market.
Niu (NASDAQ:NIU) has received a consensus Buy rating from 3 analysts. As of September 11, the average price target of $2.22 has an upside of 22.75% to the present levels.
According to our database, 4 hedge funds held stakes in Niu (NASDAQ:NIU) in Q2, with positions worth $3.065 million. With 1.13 million shares of the company, valued at $1.966 million, Polunin Capital is the largest shareholder of the company, as of June 30.
8. Ford Motor Company (NYSE:F)
Average Analyst Price Target Upside as of September 11: 47
Number of Hedge Fund Holders: 24.40%
Ford Motor Company (NYSE:F) is one of the world’s oldest and most recognized automobile manufacturers. The company is known for revolutionizing automotive production with the introduction of assembly line techniques. It is one of the largest automotive companies in the world with a diverse portfolio that includes vehicles under the Ford and Lincoln brands. It is the 8th best EV stock to buy for the long term.
According to the company, it is heavily investing in its electrification strategy, committing $22 billion through 2025 to advance EVs. The initiative includes electrifying key models like the Mustang, F-150, and Transit, with the aim of improving performance, capability, and productivity. The Mustang Mach-E and F-150 Lightning are already available.
The company is also expanding its manufacturing footprint, including a significant investment in the Rouge Electric Vehicle Center. The company’s electrification efforts align with its goal of achieving global carbon neutrality by 2050. The company is collaborating with other automakers and investing in battery technology, including a global battery center and increased funding in solid-state batteries to improve range, cost, and safety.
It is important to note that due to competition and a slowdown in global EV sales, Ford (NYSE:F) has recently scaled back its EV operations and is focusing more on hybrid technology. It can significantly benefit the company as it sells cars that allow consumers to adjust to the new technology before adopting it completely.
The company aims to offer hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade. It has experienced significant growth in EV sales, with an 86% increase in the first quarter of 2024, alongside a 42% rise in hybrid sales.
The launch of Ford’s new three-row electric vehicles at its Oakville, Ontario plant has been delayed to 2027 to take advantage of evolving battery technologies and better align with market demand.
As we mentioned in our best EV stocks under $50 article, Ford (NYSE:F) is prioritizing smaller, more affordable EVs over larger all-electric trucks and SUVs. Here is an excerpt from the article:
“The company’s CEO, Jim Farley announced plans to introduce a $30,000 all-electric vehicle in about two and a half years, emphasizing that profitability is a key focus. During the Aspen Ideas Festival held around the last week of June, Farley revealed that this vehicle, developed by a specialized Ford team, is intended to compete with Chinese automakers like BYD and an upcoming entry-level Tesla (NASDAQ:TSLA) model.
Ford (NYSE:F) is prioritizing smaller, more affordable EVs over larger all-electric trucks and SUVs, as Farley believes the latter is unlikely to be profitable due to the high costs of large battery packs. He highlighted the need for a shift in focus to smaller vehicles for both economic and environmental reasons, despite the historical profitability of larger vehicles like the company’s trucks.”
Ford’s (NYSE:F) average price target among 28 analysts is $13, which represents a 24.40% upside to the company’s stock at current levels on September 11. Additionally, in the second quarter, 47 hedge funds held positions worth $1.53 billion in the company. As of June 30, Fisher Asset Management is the company’s top shareholder with 67.3 million shares worth $844.542 million.
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.
6. Li Auto Inc. (NASDAQ:LI)
Average Analyst Price Target Upside as of September 11: 39.24%
Number of Hedge Fund Holders: 17
Li Auto Inc. (NASDAQ:LI) is a well-known name in China’s new energy vehicle sector. The company specializes in designing, developing, and manufacturing premium smart EVs. It is recognized for its pioneering role in the commercialization of extended-range electric vehicles in China while also advancing its EV platforms.
Since beginning volume production in late 2019, the company has expanded its lineup to include high-tech models such as the Li MEGA MPV and a range of flagship SUVs, including the Li L9, Li L8, and Li L7.
The company is also improving its charging infrastructure and currently has nearly 750 supercharging stations with over 3,500 charging stalls, which cover over 70% of China’s major economic zones and key highways.
It has partnered with China National Petroleum Corporation (CNPC) to further boost its network and plans to add over 2,000 charging stations and 10,000 charging columns at CNPC locations. By the end of 2024, this expansion will enable the company to extend its charging network coverage to over 90% in major city centers and more than 70% along national routes.
Li Auto (NASDAQ:LI) has been covered by 42 analysts with a consensus Buy rating and a median price target of $27.26. The median price target implies an upside of 39.24%, as of September 11.
On August 28, TipRanks reported that Eunice Lee from Bernstein reaffirmed a Buy rating on the stock with a $33 price target. Lee’s positive stance is supported by the company’s recent financial results, which showed revenue growth both year-over-year and quarter-over-quarter.
The company achieved significant sales volume increases, maintained a solid gross margin despite a drop in average selling price due to a new lower-priced model, and reported positive operating income with improved net income margins. On top of that, the company’s strong cash reserves also highlight a solid balance sheet.
For the future, the analyst is cautiously optimistic about the third quarter and expects revenue growth and sales volume to exceed expectations. However, there are concerns about potential industry-wide demand and pricing pressures in the fourth quarter. Despite these challenges, Li Auto’s (NASDAQ:LI) valuation remains attractive compared to its peers, which is supported by its profitable track record and strong financials.
Li Auto’s (NASDAQ:LI) shares were held by 17 hedge funds with total positions worth $258.398 million. As of June 30, Renaissance Technologies is the biggest shareholder in the company and has a position worth $129.69 million.
5. Toyota Motor Corporation (NYSE:TM)
Average Analyst Price Target Upside as of September 11: 40.96%
Number of Hedge Fund Holders: 14
Toyota Motor Corporation (NYSE:TM) has been making substantial progress in expanding its EV lineup, aiming to become a major player in the EV market. The company has significantly increased its production target for electric vehicles and plans to manufacture just over 400,000 EVs by 2025, up from the initial goal of 190,000 for 2024.
According to Nikkei, the company projects a global output of 1 million EVs by 2026, which shows its strong commitment to electrification. The ambitious plan includes a major shift in the company’s approach to electrification. The automaker has set a goal to offer an electrified version of every Toyota and Lexus model worldwide by 2025.
The stock has a consensus Buy rating among 20 analysts, and its average price target of $246.24 has an upside of 40.96% from current levels, as of September 11. It ranks 5th on our list of the best EV stocks to buy for the long term.
Currently, Toyota’s (NYSE:TM) sole fully electric model available in the U.S. is the bZ4X SUV. However, the company is preparing to expand its EV offerings with several exciting new models. In 2023, it introduced the next-generation BEV concept cars, including the LF-ZC and LF-ZL, under its luxury Lexus brand.
Scheduled for release in 2026, these models represent the company’s push into the high-end EV market. Additionally, it plans to launch an electric version of the Hilux pickup in Thailand and an electric Lexus ES sedan in Japan by 2025, which broadens its EV portfolio across various regions and vehicle types.
Supporting this expansion is the company’s decision to allocate more than half of its research and development resources to electrification and advanced battery technologies. It has outlined plans to enhance its EV manufacturing processes by employing new modular designs and innovative production technologies aimed at reducing costs and improving efficiency.
To accommodate its growing EV production, the company is making significant investments in its manufacturing infrastructure. Production for new EV models will take place at two of its main plants in Japan and a Lexus factory in Kyushu. Additionally, the company plans to introduce its first U.S.-assembled battery electric vehicle, a three-row SUV, with production set to start in Kentucky in 2025.
Toyota (NYSE:TM) plans on investing over $70 billion into its electrification efforts by 2030, which is a testament to its commitment to becoming a leading force in the electric vehicle market. With a comprehensive approach that includes expanding its model lineup, advancing battery technology, and enhancing manufacturing capabilities, the company is well-positioned to achieve its ambitious goals and strengthen its competitive edge.
In Q2, 14 hedge funds had investments in Toyota (NYSE:TM), with positions worth $1.42 billion. Fisher Asset Management is the most prominent shareholder in the company as of Q2 and has a position worth $1.35 billion.
4. Stellantis N.V. (NYSE:STLA)
Average Analyst Price Target Upside as of September 11: 46.19%
Number of Hedge Fund Holders: 31
Stellantis N.V. (NYSE:STLA) is making a strong push into the EV market with a clear plan to transform its lineup and production capabilities. It has introduced four global BEV-native platforms, STLA Small, Medium, Large, and Frame. Each of them is designed to accommodate various vehicle types from city cars to SUVs.
The STLA Large platform, which debuted in January, promises an impressive range of up to 800 kilometers (500 miles) and will support eight vehicle launches across five of the company’s brands, including Dodge and Jeep, from 2024 to 2026. By 2024, the company expects to have 48 BEVs available, with more planned in the following years.
Stellantis (NYSE:STLA) was held by 31 hedge funds in the second quarter and the stakes amounted to $300 million. Two Sigma Advisors is the top shareholder of the company and has a position worth $54.744 million as of Q2.
Stellantis (NYSE:STLA) is also expanding its manufacturing capabilities to support its electrification goals. In February, the company announced a €103 million investment to expand the production of electric drive modules (EDMs) at a new facility in Szentgotthard, Hungary, scheduled to begin operations in late 2026.
The new plant will supplement existing production sites in Tremery-Metz, France, Kokomo, Indiana, USA, and the Mirafiori complex in Italy, which is increasing its output of electrified dual-clutch transmissions (eDCTs) for hybrid and plug-in hybrid vehicles.
In addition to its BEV efforts, the company is ramping up its hybrid offerings, with plans to have 30 hybrid models available in Europe by 2024 and an additional six by 2026. It has already seen a 41% increase in hybrid sales in 2024 compared to the previous year, driven by its advanced eDCT technology. The company is focused on reducing CO2 emissions and improving fuel efficiency across its hybrid lineup, which includes popular models from brands like Jeep and Alfa Romeo.
Partnerships are also a key component of the company’s electrification strategy. Stellantis (NYSE:STLA) teamed up with NHOA Energy in 2023 to develop the Atlante fast-charging network in southern Europe.
The goal is to install 5,000 fast charge points by 2025 and over 35,000 by 2030. Additionally, the company is exploring dynamic wireless power transfer technology through the “Arena del Futuro” project in Italy, which aims to enable EVs to recharge while driving on specially equipped roads.
In September, the company made a significant move by announcing that it plans to invest over $406 million to expand its EV and hybrid production capabilities across three key facilities in Michigan.
The investment will be directed toward the Sterling Heights Assembly Plant (SHAP), Warren Truck Assembly Plant (WTAP), and Dundee Engine Plant (DEP), preparing these sites for the production of new vehicles and components. The investment highlights the company’s commitment to a multi-energy approach that includes electric, range-extended, and internal combustion engine (ICE) models.
Based on 26 analysts’ coverage, the stock has a consensus Buy rating. The average price target of $22.24 represents an upside of 46.19% from the current levels, as of September 11. It is one of the best EV stocks to buy for the long term.
Ariel Investments stated the following regarding Stellantis N.V. (NYSE:STLA) in its Q2 2024 investor letter:
“Finally, multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA), fell in the quarter as higher interest rates in the U.S. and tapering demand for high-volume combustion engine models resulted in elevated U.S. inventory levels. Nonetheless, pricing outperformed expectations and management reiterated full-year guidance of double-digit adjusted operating profit margin and positive free cash flow. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and unwavering dedication to leading the industry in profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”
3. ZEEKR Intelligent Technology Holding Limited (NYSE:ZK)
Average Analyst Price Target Upside as of September 11: 96.18%
Number of Hedge Fund Holders: 11
ZEEKR Intelligent Technology Holding Limited (NYSE:ZK), a budding name in the EV sector, is constantly working on establishing itself as a player in the industry. Founded in March 2021 by the Geely Group, the company is focused on designing, producing, and marketing advanced battery electric vehicles and related technologies. It is among our best EV stocks to buy for the long term.
The company’s recent IPO on the New York Stock Exchange in May 2024, which raised approximately $441 million, marked the largest IPO of a Chinese company in the U.S. since 2021, which is an indication of strong investor confidence in its future prospects.
The company’s product lineup is both diverse and innovative. The ZEEKR 001, a full-size shooting brake introduced in April 2021, was followed by the ZEEKR 001 FR, ZEEKR 009, and ZEEKR X models, each catering to different segments of the market. Since its initial launch, the ZEEKR 001 has gained substantial traction, with deliveries surpassing 200,000 vehicles in June alone. A key factor in its appeal is the integration of CATL’s Qilin long-range batteries, which allows the ZEEKR 001 to achieve a range of over 1,000 kilometers on a single charge.
The company’s growth trajectory is supported by its expanding international footprint. In June, the company announced partnerships with PT Premium Auto Prima in Indonesia and Sentinel Automotive Sdn. Bhd. in Malaysia, marking its official entry into these markets. Currently operating in over 25 major markets, it plans to broaden its reach to more than 50 international markets this year, covering regions such as Europe, Asia, Oceania, and Latin America.
In the second quarter, ZEEKR (NYSE:ZK) more than doubled its vehicle deliveries year-over-year, reaching a total of 54,811 vehicles. The surge in deliveries translated into a substantial increase in revenue, which grew by 58% to over 20 billion yuan (1 Yuan = US$0.14 as of September 11).
Additionally, the company’s second quarter was marked by new product launches, further strengthening its market position. The company updated its foundational ZEEKR 001 in August and introduced two new models, the Zeekr 009 minivan and the Zeekr 7X SUV. It adds more variety to its offerings and caters to a broader range of consumer needs.
In the second quarter, 11 hedge funds had stakes in ZEEKR (NYSE:ZK), with total positions worth $59.158 million.
ZEEKR (NYSE:ZK) has received Buy ratings from 7 analysts. As of September 11, the average price target of $33.19 implies an upside of 96.18% from the present levels.
2. VinFast Auto Ltd. (NASDAQ:VFS)
Average Analyst Price Target Upside as of September 11: 103.05%
Number of Hedge Fund Holders: 8
VinFast Auto Ltd. (NASDAQ:VFS) has been making remarkable strides since its inception in 2017. The Vietnamese manufacturer, which designs and produces EVs, e-scooters, and e-buses, is dedicated to making electric mobility accessible to a broad audience.
With a diverse range of vehicles including the VF 8, VF 9, VF 5, VF e34, VF 6, and VF 7, the company caters to various segments from A-SUV to E-SUV, which illustrates its capability to meet different consumer needs.
The company’s growth trajectory is evident from its delivery numbers. In the first half of 2024 alone, it delivered 21,747 vehicles, which shows a substantial 92% increase compared to the same period in the previous year. The surge in deliveries is part of a broader goal to hit approximately 80,000 EV deliveries by the end of 2024, a significant jump from the 34,855 vehicles delivered in 2023.
VinFast (NASDAQ:VFS) has received Buy ratings from 3 analysts. The average price target of $8.00 shows an upside of 103.05% to the stock’s current price, as of September 11. It ranks second on our list of the best EV stocks to buy for the long term.
The company is also making impressive headway in expanding its global footprint. In Indonesia, the company has established itself by signing agreements with five dealership partners. It also launched its first store in April. It had opened 15 additional dealer stores by late summer, which shows its rapid growth in the region.
Furthermore, the company is broadening its reach into other promising markets. In Thailand, the company has initiated a partnership with 15 initial dealers. In the Middle East, VinFast (NASDAQ:VFS) has secured a dealer sales agreement for Oman and formed an exclusive dealership partnership with Al Mana Holding W.L.L. for Qatar.
In Q2, 8 hedge funds had stakes in VinFast (NASDAQ:VFS), with positions worth $342,000.
1. Canoo Inc. (NASDAQ:GOEV)
Average Analyst Price Target Upside as of September 11: 268.85%
Number of Hedge Fund Holders: 5
Canoo Inc. (NASDAQ:GOEV) is an innovative force in the EV sector, on the edge of transforming itself with cutting-edge designs and technologies. The company’s focus on versatility and efficiency is evident through its multi-purpose platform (MPP), which integrates crucial components like motors and battery modules into a single, adaptable structure.
The platform allows the company to offer a wide range of vehicles tailored to different needs, including the Lifestyle Vehicle for consumers, the Delivery Vehicle for commercial use, and an all-electric pickup truck.
Investments in manufacturing infrastructure further position it for growth. The company’s first established battery module manufacturing facility is in Pryor, Oklahoma, which is powered largely by renewable energy sources such as hydro and wind power.
The commitment to sustainability was complemented by the acquisition of advanced manufacturing assets at its Oklahoma City site. The assets include state-of-the-art robotics and processing equipment, which pushes it forward to scale production efficiently while maintaining high standards of quality.
Its strategic partnerships solidify its market reach and operational capabilities. In 2023, the company entered an agreement with GCC Olayan, a prominent distributor in Saudi Arabia. The partnership grants GCC Olayan exclusive rights to sell, service, and distribute the company’s vehicles in the region and plans to establish a joint venture for local assembly.
The move aligns with Saudi Arabia’s Vision 2030 initiative, which focuses on sustainable mobility solutions. Additionally, Canoo’s (NASDAQ:GOEV) vehicles are set to be part of a pilot program by Red Sea Global, where they will be used in a high-profile tourism project. It points to the practical applications and versatility of its EVs in various environments.
Furthermore, the company’s recent deal with Go2 Delivery highlights the growing demand for its commercial vehicles. Go2 Delivery has committed to purchasing five fully-electric vans, with an option for up to 85 more. The integration of the company’s Class 1 Lifestyle Delivery Vehicle 130 into Go2’s fleet points to the company’s appeal in the commercial sector.
Despite some recent adjustments to production timelines, on August 15, H.C. Wainwright lowered the price target on Canoo to $4 from $7 but kept a Buy rating on the shares post the Q2 report. As per the firm, the key driver for the company’s future stock performance remains vehicle deliveries. The company’s focus on expanding its production capacity and forging meaningful partnerships suggests that it is on a path that could lead to significant growth as it moves towards ramping up production and increasing its market presence.
Furthermore, 6 analysts have a consensus Buy rating on the stock. The average price target of $4.50 represents an upside of 268.85% to the stock’s current price, as of September 11. It tops our list of the best EV stocks to buy for the long term. However, it is important to note that the company is having a few financial troubles such as high cash burn, but analysts remain optimistic due to its recent cost management moves and future revenue growth. On the other hand, the bears believe that the company needs substantial funding to continue its operations with ease.
According to the Insider Monkey’s database, Canoo (NASDAQ:GOEV) was a part of 5 hedge fund managers’ portfolios, with stakes worth $212,000 as of the second quarter. As of June 30, Millennium Management holds the highest stake in the stock, worth $80,486.
While we acknowledge the potential of Canoo Inc. (NASDAQ:GOEV) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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