In this article, we discuss the 10 hot EV stocks to buy now along with the latest updates around the industry.
Just like any new technology, there is a lot of skepticism about the electric vehicle (EV) industry as well. Some believe that the technology is not viable while others are worried if the infrastructure will be enough to meet the charging demand and so on.
However, the electrification of vehicles is inevitable in the future. While there has been a slowdown in EVs in the US and Europe, China’s dominance and growth in the industry are a testament to the fact that the technology will take over internal combustion engines relatively soon.
We discussed the dominance of the Chinese EV industry in our article, 11 Small Cap EV Stocks to Invest In. Here is an excerpt from the article:
“While the growth in the US and Europe is slowing down, China is picking up a significant pace and dominating the EV landscape. According to a World Economic Forum report, Chinese EVs are much cheaper than their Western counterparts, with an average price of $34,400, compared to $55,242 in the U.S. The price gap is driven by lower labor costs, favorable government subsidies, and more affordable battery sourcing.
Chinese automakers now produce more than half of the world’s EVs and are using their cost advantages to potentially dominate the global market. As Chinese brands gain scale and expertise, their competitive pricing could allow them to challenge Western automakers.”
A lot of the EV slowdown in the West is attributed to the removal of subsidies, higher prices compared to gas-powered cars, and limited charging infrastructure. Nevertheless, some governments are now considering reinstating subsidies, and automakers are working to introduce more affordable EV models to boost demand and recover market share.
Burning Question: Is EV and Battery Manufacturing Worse for Climate?
While it is clear that EVs are better for the environment, many people have raised questions about the impacts of EVs and battery production on the environment. According to a report posted on the MIT Climate portal in 2022, Sergey Paltsev from MIT’s Joint Program on the Science and Policy of Global Change explained that despite the manufacturing emissions, EVs have a significantly lower environmental impact compared to gasoline-powered cars.
The higher emissions from manufacturing EVs, especially due to the production of their lithium-ion batteries, are offset by the cleaner operation of EVs over their lifetime. Charging emissions vary depending on the energy source.
In regions using clean energy like hydropower, EVs have a very low carbon footprint, while in areas reliant on coal, the emissions are higher. However, even in the worst scenarios, EVs generally outperform gasoline vehicles in terms of emissions.
Moreover, studies from MIT and the U.S. Department of Energy show that EVs consistently produce less carbon dioxide per mile driven than hybrids or gas-powered cars. For example, the average EV emits 25% less CO2 than hybrids when using the U.S. grid’s energy mix, and this gap widens in regions with cleaner energy.
With that, we look at the 11 Hot EV Stocks to Buy Now.
A modern electric vehicle charging at an electric car station.
Our Methodology
For this article, we scoured stock screeners and ETFs to identify nearly 50 stocks that were involved in the EV industry in a significant capacity. Next, we narrowed our list to 11 stocks that had double-digit year-to-date share price growth as of September 30 and were most widely held by institutional investors. It is important to note that the share price returns were calculated while the market was open which could result in fluctuations compared to the provided data. Finally, we listed the 11 hot EV stocks to buy in ascending order of their hedge fund sentiment, 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 Hot EV Stocks to Buy Now
11. CBAK Energy Technology, Inc. (NASDAQ:CBAT)
Year-to-date Share Price Returns: 17.19%
Number of Hedge Fund Holders: 3
CBAK Energy Technology, Inc. (NASDAQ:CBAT) is a manufacturer and distributor of lithium-ion rechargeable batteries, operating primarily in Mainland China, the United States, Europe, and other international markets.
Its batteries are used for several applications, including EVs, such as cars and buses, as well as light electric vehicles like bicycles and scooters. The company also provides energy storage solutions.
The company recently reported its second-quarter earnings and showed a revenue of $47.8 million, which was 13% up year-over-year. The battery segment alone saw impressive growth, with revenues rising to $35.6 million, a 60% increase.
The energy storage area also performed well, reaching $33.57 million, while electric vehicle batteries brought in $200,000 and light electric vehicles contributed $1.83 million, representing increases of 46% and 59%, respectively.
Moreover, unlike last year’s Q2, the company reported a profit as its net income reached $6.45 million, compared to a net loss of $2.7 million in the same quarter last year. The battery segment had a net income of $7.89 million, compared to a loss of $1.13 million in the same quarter last year. The company also announced its plan to launch a new large cylindrical battery model, which is expected to increase sales even more.
According to Insider Monkey’s database, CBAK’s (NASDAQ:CBAT) stock was owned by 3 hedge funds in Q2, with positions worth $313,000. This brings the company to 11th position on our list of hot EV stocks to buy.
10. China Yuchai International Limited (NYSE:CYD)
Year-to-date Share Price Returns: 52.31%
Number of Hedge Fund Holders: 5
One of the hot EV stocks, China Yuchai International Limited (NYSE:CYD) is a diversified machinery company. The company’s main subsidiary Guangxi Yuchai Machinery Company Limited (GYMCL), is a major engine manufacturer in China. GYMCL produces a wide variety of engines for light, medium, and heavy-duty applications, including trucks, buses, industrial machinery, and marine equipment.
The company has a diversified portfolio that includes diesel, natural gas, hybrid, and new energy powertrains. GYMCL has been increasingly focused on new energy solutions, introducing a suite of hybrid, electric, and hydrogen-powered systems.
In the first half of 2024, China Yuchai (NYSE:CYD) reported a significant increase in revenue, operating profits, and earnings compared to the same period in 2023. Sales rose by 12.4%, driven by a 16.3% increase in unit sales. The truck and bus market saw combined engine unit sales grow by 32.8%.
Heavy-duty truck engine sales grew by 32.9%, while medium-duty truck engines rose by 33.1%, and light-duty truck engines experienced a whopping 45.6% increase. The bus engine market also performed well, with growth across all segments. Off-road engine sales exceeded 104,000 units, representing a 6.4% year-over-year growth.
On September 3, Greenridge raised its price target for China Yuchai (NYSE:CYD) from $12.50 to $15 and maintained a Buy rating on the company stock. The firm said that the company’s first-half performance exceeded expectations, especially in the on-road engine segment.
Based on this positive outcome, Greenridge believes that China Yuchai’s core financial health and performance have improved compared to previous periods.
9. ADS-TEC Energy PLC (NASDAQ:ADSE)
Year-to-date Share Price Returns: 86.62%
Number of Hedge Fund Holders: 5
ADS-TEC Energy PLC (NASDAQ:ADSE) focuses on decentralized energy platforms integrated with battery storage systems. Its main goal is to help make renewable energy like wind and solar more reliable by managing power fluctuations. The company creates systems that allow for faster EV charging and other energy management solutions. It ranks 9th among our hot EV stocks to buy now.
One of the most significant products of the company in the EV charging infrastructure is its ChargeBox, which helps lower peak power demand by about 65% compared to direct-to-grid charging systems. Direct-to-grid fast chargers require high power for short durations, triggering significant demand charges.
However, the ChargeBox reduces peak power demand while delivering fast charging (up to 320 kW), which results in savings on operational costs. According to ADS-TEC’s (NASDAQ:ADSE) website, the company has delivered over 2500 charge points.
On September 12, the company reported strong financial growth for the first half of 2024, with revenues reaching €79.3 million, a 107% increase from the same period in 2023. The company also achieved a gross margin of 19.8%, significantly improving from last year’s negative margin. Its operating expenses grew slightly, but the company reduced its operating losses and recorded a positive adjusted EBITDA of €3.6 million, which is its third profitable quarter.
In addition, ADS-TEC (NASDAQ:ADSE) reported a nearly 300% paying customer base increase compared to the same period last year. Finally, the company had cash and cash equivalents of €23 million, as of June 30.
In Q2, ADS-TEC Energy’s (NASDAQ:ADSE) shares were held by 5 hedge funds in the second quarter, with positions worth $2.527 million, according to our database.
8. EVgo, Inc. (NASDAQ:EVGO)
Year-to-date Share Price Returns: 26.06%
Number of Hedge Fund Holders: 11
A hot EV stock, EVgo, Inc. (NASDAQ:EVGO) is one of the most significant players in the EV charging industry. It mainly focuses on fast-charging solutions and manages a network of thousands of charging stations. According to the company, over 145 million people live within 10 miles of the company’s charging stations.
The company has partnerships with several big names in the automotive-related industries that create huge growth catalysts for its future. In the ride-sharing segment, it has partnered with notable partners such as Uber and Lyft.
The company also works with automotive brands like Nissan, BMW, Chevrolet, Tesla, Kia, Ford, and Hyundai to provide EV drivers with charging options and access to one of the largest public fast-charging networks in the country.
EVgo (NASDAQ:EVGO), in collaboration with General Motors, installed the thousandth fast-charging stall in 2023. In 2024, the companies announced on September 12 that they are expanding their partnership by introducing 400 fast-charging stalls at some major locations across U.S. cities. These stations will feature high-speed 350kW chargers and amenities like canopies and pull-through access.
The first location is expected in 2025, with the stations positioned near shopping and dining areas. The current expansion builds on their ongoing collaboration to construct 2,850 DC fast-charging stalls, with plans to reach 2,000 stalls by the end of 2024.
7. CTS Corporation (NYSE:CTS)
Year-to-date Share Price Returns: 11.33%
Number of Hedge Fund Holders: 13
A hot EV stock, CTS Corporation (NYSE:CTS) is a manufacturer focused on sensors, actuators, and connectivity components, serving markets across North America, Europe, and Asia. It has established a name in the rapidly evolving EV industry.
The company offers an extensive range of products, including current sensors, pedals, and specialized sensors tailored for EVs. It delivers modular designs that prioritize environmental resilience, superior performance, and high quality.
CTS Corporation (NYSE:CTS) was held by 13 hedge funds in the second quarter and the stakes amounted to $116.740 million as per Insider Monkey’s database. GAMCO Investors is the most dominant shareholder of the company and has a position worth $67.74 million, as of June 30.
It provides an automotive position sensor, which adds to the performance and efficiency of electric vehicles. The sensors are essential for monitoring the position of components within an electric motor system as they provide optimal operation.
A standout product in this category is the high-speed motor position sensor, designed specifically for electric engines. It replaces traditional resolver technology with an advanced electronic resolver solution that uses induction sensing principles, which significantly improves performance.
The company also designs advanced alternating current (AC) draw sensors and clamp-on magnetic field concentrators for various types of electric and hybrid vehicles, using Hall-effect technology.
The solutions cater to EVs, hybrid electric vehicles (HEVs), battery electric vehicles (BEVs), and plug-in hybrid electric vehicles (PHEVs).
Another related product is the custom modular pedal system, which includes the eBrake and DrivePad. The systems are compatible with brake-by-wire technology and other custom applications, prioritizing safety through the incorporation of multiple sensor technologies to protect users.
In 2023, CTS Corporation (NYSE:CTS) took a significant step forward by acquiring maglab AG, a privately held company specializing in magnetic system design and current measurement solutions.
The acquisition expands its capabilities in smart and fail-safe positions and current measurement, particularly for electric mobility, renewable energy, robotics, and automation. According to Kieran O’Sullivan, CEO of the company, this partnership brings complementary strengths in sensor technology and electric motor controls for it.
6. REV Group, Inc. (NYSE:REVG)
Year-to-date Share Price Returns: 54.42%
Number of Hedge Fund Holders: 22
REV Group, Inc. (NYSE:REVG) is a Wisconsin-based company that manufactures a diverse range of vehicles, including ambulances, buses, firefighting equipment, recreational vehicles, and other specialty vehicles. The company also provides aftermarket services for specialty vehicles.
REV (NYSE:REVG) is revolutionizing the EV market for specialty vehicles. Some of its EV offerings include all-electric fire trucks, ambulances, and transit buses, along with hydrogen fuel cell buses and terminal trucks.
On September 4, REV (NYSE:REVG) reported its fiscal third-quarter results, showing net sales of $579.4 million, down from $680 million in the same quarter last year. Despite this decline, net income rose to $18 million compared to $14.9 million in the prior year.
The company also updated its fiscal 2024 outlook, according to which, it expects net sales between $2.35 billion and $2.45 billion, net income of $226 million to $240 million, and Adjusted EBITDA of $155 million to $165 million.
After the earnings, Baird commented that while the company performed better than expected in terms of operations and slightly raised its EBITDA guidance, it was not sufficient to meet the higher expectations set by investors.
However, the firm is optimistic about significant growth in profit margins, EPS, and free cash flow through the fiscal year 2026. Baird has an Outperform rating on the stock with a price target of $32.
According to our database, 22 hedge funds had stakes worth $238.333 million in REV (NYSE:REVG) in the second quarter. This brings the company to 6th position on our list of hot EV stocks to buy.
5. Blue Bird Corporation (NASDAQ:BLBD)
Year-to-date Share Price Returns: 83.01%
Number of Hedge Fund Holders: 24
Blue Bird Corporation (NASDAQ:BLBD) is an American company that manufactures school buses. The company has established itself as a frontrunner in producing low and zero-emission buses Its product range includes traditional school buses, pupil activity buses, and specialized vehicles like mobile libraries and police command centers. It is among our hot EV stocks to buy now.
The company’s Vision Electric school buses carry up to 77 passengers and have a range of 130 miles on a single charge. According to the company, it has a gross vehicle weight rating (GVWR) of 33,000 lbs. The All-American RE Electric has a GVWR of up to 36,000 lbs, carries 84 passengers, and has a range of 120 miles.
Blue Bird (NASDAQ:BLBD) has a favorable rating among analysts as it has been covered by 7 analysts with an average price target of $66, and all have a Buy equivalent rating on the stock. Their average price target represents an over 36% upside to the company’s stock, as of September 30.
On September 10, TipRanks reported that Needham analyst Chris Pierce reiterated a Buy rating on the company stock with a price target of $72. The analyst believes that the stock is undervalued and highlighted the company’s resilience in a politically stable sector and its potential for recovery in sales volume. He also noted that the market has not fully acknowledged the company’s opportunities in the EV market.
Pierce’s price target reflects a valuation of 12.5 times the anticipated adjusted EBITDA for fiscal year 2025 and suggests that as margins improve, investors will recognize the stock’s value.
4. Embraer S.A. (NYSE:ERJ)
Year-to-date Share Price Returns: 97.53%
Number of Hedge Fund Holders: 25
Embraer S.A. (NYSE:ERJ) is a prominent name in the global aerospace industry. It is engaged in the design, development, manufacturing, and sale of aircraft and systems across multiple regions, including North America, Latin America, the Asia Pacific, Europe, and its home country of Brazil. It ranks 4th on our list of hot EV stocks to buy now.
Founded in 1969, it has a remarkable history, having delivered over 8,000 aircraft to date. The impressive output means that one of its planes takes off approximately every 10 seconds, collectively transporting more than 145 million passengers annually. As the leading manufacturer of commercial jets with up to 150 seats, the company plays an important role in the aviation sector and is also Brazil’s top exporter of high-value goods.
Embraer (NYSE:ERJ) is actively going after advancements in electric aviation, especially in the development of electric vertical takeoff and landing (eVTOL) aircraft. It is considered to be the next step in the future of urban air mobility, which is expected to address the growing need for innovative urban transportation solutions.
In 2023, the company announced plans to establish a new factory near São Paulo for the production of electric flying taxis, with the goal of having them operational by 2026.
The facility will be located in Taubaté, approximately 140 kilometers (87 miles) from São Paulo, the economic hub of Brazil. Pending final approvals from relevant authorities, the manufacturing plant will be constructed in a designated area within the company’s current site in the city, which will undergo expansion.
Through its subsidiary, Eve Air Mobility, the company focuses on creating eVTOL aircraft that include the vehicles themselves. It also provides supporting infrastructure and services necessary for their operation. Designed for short-distance travel in urban areas, these eVTOL aircraft are key to reducing congestion and improving transportation efficiency in cities.
In July, Eve Air Mobility achieved a significant advancement by unveiling the full-scale prototype of its “flying taxi.” The prototype represents an impressive step toward obtaining certification and entering service by 2026.
The aircraft is equipped with electric engines, although the initial version does not feature a cabin or pilot. The goal is to have a final model that can accommodate four passengers and a pilot.
Embraer’s (NYSE:ERJ) management has expressed that the readiness of this prototype for testing is a sign of progress toward the certification process, which began with an application to Brazil’s civil aviation authority in 2022.
Eve plans to have five conforming prototypes ready for testing in the next year and seeks to produce a pre-series eVTOL by 2026 as part of its certification strategy.
3. Lumentum Holdings Inc. (NASDAQ:LITE)
Year-to-date Share Price Returns: 20.93%
Number of Hedge Fund Holders: 32
Lumentum Holdings Inc. (NASDAQ:LITE) is a global manufacturer specializing in optical and photonic products and providing its products and services to markets across the Americas, Asia-Pacific, Europe, the Middle East, and Africa. It is among our hot EV stocks to buy now.
It provides essential components that advance the manufacturing and operation of EVs. It focuses on key areas such as sensing, communication, and data processing, all crucial for the evolution of electric and autonomous vehicles.
At a stake value of $702.421 million, 32 hedge funds tracked by Insider Monkey held positions in Lumentum Holdings (NASDAQ:LITE) in the second quarter. As of Q2, Point72 Asset Management is the top shareholder in the company and has a position worth $164.366 million.
One of the important EV-related offerings from the company is its high-performance laser systems and optical components, which are important to 3D sensing technologies used in autonomous vehicles.
The technologies facilitate necessary features like obstacle detection and navigation, which contribute to the safe operation of self-driving cars. Furthermore, the company’s optical communication solutions are designed to enable high-speed data transfer, a necessity for the connectivity features found in modern EVs.
As the production of lithium-ion and solid-state batteries expands, its laser technologies address several manufacturing challenges. The lasers assist in various stages of battery cell production, including electrode cutting, laser patterning, ablation, notching, slitting, and surface structuring.
By implementing these solutions, manufacturers can reduce costs and produce battery cells with higher energy and power density, which is critical for improving the performance and efficiency of EVs.
In 2023, Lumentum Holdings (NASDAQ:LITE) partnered with Lumotive to launch the M30 Reference Design, a cutting-edge sensor technology aimed at improving vehicle perception. The design merges Lumotive’s advanced beam-steering chip with Lumentum’s laser array, specifically engineered for 3D LiDAR systems.
The systems are essential for self-driving cars and other advanced mobility applications. The company’s multi-junction VCSEL arrays included in the M30 design provide significant benefits. They are more energy-efficient than traditional lasers and offer advanced scanning precision, which ensures effective operation in various lighting conditions and over different distances.
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.”
1. General Motors Company (NYSE:GM)
Year-to-date Share Price Returns: 24.41%
Number of Hedge Fund Holders: 72
General Motors Company (NYSE:GM) is one of the largest automotive companies in the world and offers vehicles through its lineup of well-known names like Chevrolet, Buick, GMC, and Cadillac. Its products include budget-friendly daily-use vehicles as well as high-end luxury vehicles.
The company is moving toward an all-electric future with its Ultium Platform, which is designed to provide great power, range, and performance across a variety of vehicles, including cars, SUVs, and trucks.
Some significant advancements in its portfolio include Ultifi, a software system that allows for updates, subscriptions, and app features to keep vehicles customized and up-to-date. It tops our list of hot EV stocks to buy now.
General Motors (NYSE:GM) has also introduced myChevrolet Mobile App that helps drivers manage range and find charging stations, which makes the switch to electric vehicles smoother. Its subsidiary, BrightDrop, is also changing the delivery industry with electric vehicles like the Zevo 600 delivery van and the Trace, an electric cart for short-distance transport.
Despite retracting most of its earlier EV sales targets, the company believes it is gaining momentum with an expanding lineup of all-electric vehicles. As reported by CNBC on September 23, the company’s president of global markets, Rory Harvey reported significant growth in EV sales, with nearly 21,000 units sold in July and August, which almost matches the total for the entire second quarter.
General Motors (NYSE:GM) currently offers eight models based on its Ultium platform, including the Chevy Equinox and luxury Cadillac vehicles, with plans to launch two more Cadillac models by year’s end.
The company expects to achieve profitability in its EV production once it reaches an output of 200,000 units. While it depends on the future of consumer demand for EVs, the company is aiming to go completely electric by 2035.
According to our Q2 database of over 900 hedge funds, 72 hedge funds had stakes in General Motors (NYSE:GM), worth $4.07 billion. As of June 30, Harris Associates holds 34.36 million shares of the company, valued at nearly $1.6 billion, making the firm GM’s most prominent shareholder.
Diamond Hill Capital stated the following regarding General Motors Company (NYSE:GM) in its Q2 2024 investor letter:
“Other top Q2 contributors included Extra Space Storage and General Motors Company (NYSE:GM). Shares of automobile manufacturer General Motors (GM) rose as its internal combustion engine business has also received a boost from the recent slowdown in electric vehicle adoption among consumers. GM also announced additional share repurchases in Q2, reinforcing its commitment to returning cash to shareholders.”
While we acknowledge the potential of General Motors (NYSE:GM) as an investment, 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 GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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