11 Hot EV Stocks to Buy Now

2. Cummins Inc. (NYSE:CMI)

Year-to-date Share Price Returns: 34.39%

Number of Hedge Fund Holders: 38

One of the hot EV stocks, Cummins Inc. (NYSE:CMI) is engaged in the design, manufacture, distribution, and servicing of diesel and natural gas engines, as well as electric and hybrid powertrains. The company has made significant strides in developing advanced electrified power systems, which include batteries, fuel cells, and hydrogen production technologies.

The innovations are applicable to a range of sectors, particularly heavy-duty trucks and commercial vehicles. Furthermore, it offers electric power generation systems that contribute to cleaner energy solutions across various industries.

The company’s segment, Accelera, focuses on zero-emissions solutions. Accelera acts as both a components supplier and integrator, offering a wide range of products such as batteries, hydrogen fuel cells, e-axles, and traction drives.

It operates across North America, Europe, and Asia. The current offerings include essential components for BEVs, including batteries, hydrogen fuel cells, e-axles, traction drives, and electrolyzers.

In July, Cummins (NYSE:CMI) announced a significant development that shows its commitment to sustainability. The company received a $75 million federal grant to convert approximately 360,000 square feet of manufacturing space at its Columbus Engine Plant in Indiana.

The funding, which is the largest federal grant ever awarded exclusively to the company, will be matched by an additional $75 million investment from the company. The $150 million project seeks to expand the production of battery packs and electric powertrain systems.

The project is expected to lead to a reduction of around 104 million metric tons of carbon dioxide emissions by 2030, which could further its position in the transition to clean energy.

Additionally, in May, Accelera revealed plans to introduce a battery-electric powertrain for Isuzu’s F-series trucks in North America, with availability anticipated in 2026. The vehicle will feature next-generation lithium iron phosphate (LFP) battery technology.

Parnassus Investments stated the following regarding Cummins Inc. (NYSE:CMI) in its first quarter 2024 investor letter:

“Cummins Inc. (NYSE:CMI), a leader in diesel and alternative fuel engines and generators, guided to a shallower-than-expected downcycle in 2024. New rules from the Environmental Protection Agency are expected to drive higher demand for the company’s truck engines in the coming years.”