12 Best EV Stocks to Buy for The Long Term

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1) Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

3-Year Sales Growth: 21.9%

Tesla, Inc. (NASDAQ:TSLA) is engaged in designing, developing, manufacturing, leasing, and selling EVs, and energy generation and storage systems. The company’s strong brand equity helps command premium pricing, while the company’s EV manufacturing expertise enables it to make vehicles more cheaply than competitors. Morningstar expects increased autonomous driving software adoption and rapid growth in Tesla, Inc. (NASDAQ:TSLA)’s energy generation and storage business.

With continuous advancements in vehicle autonomy and the introduction of new products, the company expects the vehicle business to return to growth in 2025. The rate of growth is expected to rely on several factors, including the rate of acceleration of its autonomy efforts, production ramp at the factories, and the broader macroeconomic environment. However, Tesla, Inc. (NASDAQ:TSLA) anticipates energy storage deployments to grow at least 50% YoY in 2025.

Morningstar sees the potential for Tesla, Inc. (NASDAQ:TSLA) to outearn its cost of capital over at least the upcoming 20 years. Benchmark analyst Mickey Legg initiated coverage of the company’s shares and provided a “Buy” rating with a price target of $475. Apart from the continued proliferation of the EV market, Tesla, Inc. (NASDAQ:TSLA) possesses several opportunities to fuel growth, including AVs, robotics, and energy generation/storage, says the analyst.

While we acknowledge the potential of TSLA 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 timeframe. If you are looking for a deeply undervalued AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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