In this piece, we will take a look at the 13 best EV stocks to buy in 2024. If you want to skip our introduction to the electric vehicle market and the latest news, then you can take a look at the 5 Best EV Stocks To Buy in 2024.
If there’s one thing that can be said with certainty as well as settle into 2024, it’s that the electric vehicle industry is a changed sector. Before the Russian invasion of Ukraine took place in 2022, the clean energy sector that’s led by electric vehicle firms such as Tesla, Inc. (NASDAQ:TSLA), was an investor darling. Money, helped by record low interest rates, was piling into the sector as investors rushed to get an early spot inside the world’s attempt to shift away from sooty fossil fuels into the new era of clean and renewable energy.
However, since the invasion started, global macroeconomic conditions have meant that high growth and high risk sectors such as electric vehicle stocks are now facing an environment they haven’t contended with before. Higher rates mean that investors demand more bang for the buck for their money, and EV stocks such as Lucid Group, Inc. (NASDAQ:LCID) are left at a disadvantage since they are in the early stages of their business expansion and therefore find it difficult to rake in bottom line profits. In fact, Lucid’s shares are down by 62% over the past year as the luxury electric vehicle manufacturer finds itself facing the same set of manufacturing and production problems that Tesla had to face as it valiantly attempted to scale up production.
While we’ll get into some of the problems that electric vehicle stocks are facing in a bit, their turmoil aren’t helped by the fact that consumers are growing wary of cars of a new kind that are still quite young when we consider the established nature of the internal combustion automobile industry. These problems were evident in a bombshell report by Consumer Reports that surveyed more than a quarter of a million EV users and found that vehicles, especially those that were launched over the past three years faced a stunning 79% more problems than a traditional car.
So, what’s troubling EV stocks these days? Well, the tighter financial conditions since the Russian invasion mean that consumers find it more difficult to finance pricey EV purchases, right at the time when car manufacturers have invested billions of dollars of capital in an industry that many believe does not have an upward limit to its demand. This was evident during the latest earnings call of the U.S. automotive giant General Motors Company (NYSE:GM), where management outlined that not only had EV demand slowed down, but that the firm might have to re divert resources back to making conventional cars.
Talking about automotive giants, no analysis of the electric vehicle industry would be complete without looking at what the world’s most valuable EV stock Tesla has been up to. These days, Tesla is embroiled in a fresh bout of controversy that has seen its chief Elon Musk vow to move the firm’s incorporation out of Delaware after he was stripped of a massive $65 billion pay package. However, industry insiders believe that despite Musk rapidly calling for a vote to decide matters after he was denied the pay package, Tesla is yet to set the date for a shareholder vote since its board might not be adequately independent of Musk. When it comes to watching EV stocks, this particular news bite could very well prove to be a major catalyst (or otherwise) for Tesla’s shares.
With these details in mind, let’s take a look at the best EV stocks to buy in 2024. Some notable names are Ford Motor Company (NYSE:F), Tesla, Inc. (NASDAQ:TSLA), and General Motors Company (NYSE:GM).
A brand new electric vehicle charging at a charging station with a city skyline in the background.
Our Methodology
To make our list of the best EV stocks to buy in 2024, we ranked all companies directly engaged in electric vehicle manufacturing or provide important services to the industry by the number of hedge funds that had bought the shares in Q4 2023. Out of these, the top stocks were chosen.
For these best EV stocks, we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
13 Best EV Stocks To Buy in 2024
13. Fisker Inc. (NYSE:FSR)
Number of Hedge Fund Investors In Q4 2023: 11
Fisker Inc. (NYSE:FSR) is an American electric vehicle company headquartered in Mountain View, California. It’s another EV stock that has struggled as of late since the firm has missed analyst EPS estimates in three out of its four latest quarters.
As of Q4 2023 end, 11 out of the 933 hedge funds part of Insider Monkey’s database were Fisker Inc. (NYSE:FSR)’s shareholders. Along with Ford Motor Company (NYSE:F), Tesla, Inc. (NASDAQ:TSLA), and General Motors Company (NYSE:GM), it is a great EV stock in 2024.
12. Nikola Corporation (NASDAQ:NKLA)
Number of Hedge Fund Investors In Q4 2023: 12
Nikola Corporation (NASDAQ:NKLA) is an American electric vehicle company that is focusing its efforts on developing hydrogen powered trucks. 2024 has seen its founder Trevor Milton, who has admitted to fraud, try to return to the firm by suggesting a slew of directors for the board. His suggestions have been rejected by the firm though.
During last year’s fourth quarter, 12 out of the 933 hedge funds surveyed by Insider Monkey had invested in the firm. Anand Parekh’s Alyeska Investment Group was the biggest Nikola Corporation (NASDAQ:NKLA) investor due to its $28.3 million stake.
11. The Lion Electric Company (NYSE:LEV)
Number of Hedge Fund Investors In Q4 2023: 13
The Lion Electric Company (NYSE:LEV) is a Canadian firm that is seeking to develop heavy duty electric vehicles such as school buses. The firm started 2024 on a strong note when it announced that deliveries of its brand new electric bus model had already started in January.
By the end of 2023’s December quarter, out of the 933 hedge funds covered by Insider Monkey’s research, 13 were The Lion Electric Company (NYSE:LEV)’s shareholders. Steve Cohen’s Point72 Asset Management was the largest stakeholder since it held $877,212 worth of shares.
10. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Investors In Q4 2023: 15
Toyota Motor Corporation (NYSE:TM) is the global automotive giant headquartered in Japan. Even as the global EV industry reels from a demand slowdown, the firm is all set to pump $1.5 billion into its U.S. EV production to expand its presence in the country.
Heading into the year, 15 out of the 933 hedge funds covered by Insider Monkey’s research counted themselves as Toyota Motor Corporation (NYSE:TM)’s investors. Ken Fisher’s Fisher Asset Management owned the biggest stake which was worth $1.1 billion.
9. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Investors In Q4 2023: 15
XPeng Inc. (NYSE:XPEV) is a Chinese electric vehicle company headquartered in Guangzhou, China. The firm was out with some big news for investors in February 2024 when it revealed that capital spending during the year will sit at a whopping $486 million to ensure that XPeng Inc. (NYSE:XPEV) can adequately compete in the world’s hottest EV market, China.
During 2023’s final quarter, 15 out of the 933 hedge funds tracked by Insider Monkey had invested in the company. D. E. Shaw’s D E Shaw owned the biggest stake in XPeng Inc. (NYSE:XPEV) which was worth $75 million.
8. REV Group, Inc. (NYSE:REVG)
Number of Hedge Fund Investors In Q4 2023: 18
REV Group, Inc. (NYSE:REVG) is a rather unique electric vehicle company, since while it is not a pure play EV stock, the fact that it is one of the first firms in the world to develop an electric ambulance places sizeable catalysts at its disposable. The shares are rated Buy on average, and the firm has beaten analyst EPS estimates in all four of its latest quarters.
By the end of last year’s fourth quarter, 18 out of the 933 hedge funds part of Insider Monkey’s database had bought and owned REV Group, Inc. (NYSE:REVG)’s shares. Richard S. Pzena’s Pzena Investment Management was the largest shareholder courtesy of its $45.6 million stake.
7. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Investors In Q4 2023: 20
NIO Inc. (NYSE:NIO) is a Chinese electric SUV and sedan manufacturer headquartered in Shanghai, China. Amidst a slow Chinese economy that has dented the prospects of both broader and EV stocks, the firm’s delivery report for January 2024 reported a modest 18% annual growth.
As of December 2023 end, 20 out of the 933 hedge funds polled by Insider Monkey were the firm’s investors. NIO Inc. (NYSE:NIO)’s biggest investor among these is Jos Shaver’s Electron Capital Partners as it owns 4.4 million shares that are worth $40 million.
6. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Investors In Q4 2023: 21
Lucid Group, Inc. (NASDAQ:LCID) is an American high end electric vehicle company headquartered in Newark, California. The firm’s fourth quarter of 2023 earnings results, which saw it miss analyst revenue estimates of $181 million didn’t bode well for the stock as it tumbled by more than 6% in aftermarket trading.
During Q4 2023, 21 out of the 933 hedge funds surveyed by Insider Monkey had bought and owned Lucid Group, Inc. (NASDAQ:LCID)’s shares. It joins Ford Motor Company (NYSE:F), Tesla, Inc. (NASDAQ:TSLA), and General Motors Company (NYSE:GM) in our list of the best EV stocks for 2024.
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Disclosure: None. 13 Best EV Stocks To Buy in 2024 is originally published on Insider Monkey.
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