13 Most Promising EV Stocks to Buy According to Hedge Funds

9. Stellantis N.V. (NASDAQ:STLA)

Number of Hedge Fund Holders: 31

Stellantis N.V. (NASDAQ:STLA), a major global automotive manufacturer formed in 2021 from the merger of Fiat Chrysler Automobiles and the PSA Group, is one of the largest and fastest-growing automotive brands. It is the 9th most promising EV stock to buy.

Despite its diverse brand portfolio allowing revenue generation in varying economic conditions, the company has faced challenges, especially in Europe, where inventory levels have surged due to a sluggish economy. This situation is echoed in the U.S., where rising used car inventories have impacted sales. Moreover, the company has encountered difficulties maintaining operations in American plants due to union-related issues.

Nevertheless, the company, which includes well-known brands like Chrysler, Jeep, and Maserati, is focusing on electrification as part of its “Dare Forward 2030” strategy. It aims for 100% BEV sales in Europe and 50% in the U.S. by 2030, with more than 75 BEV models expected globally.

Stellantis (NASDAQ:STLA) is aggressively entering the EV market with plans to transform its product lineup and production capabilities. It has developed four BEV-native platforms, STLA Small, Medium, Large, and Frame, which are designed to cater to different vehicle types. The STLA Large platform, introduced in January, aims to support eight vehicle launches across five brands by 2026, supporting a potential range of 800 kilometers (500 miles). By 2024, the company expects to have 48 BEV models available.

The company is also advancing its manufacturing capabilities, including a €103 million investment to expand electric drive module production in Hungary, scheduled to commence in late 2026.

In addition to its BEV efforts, Stellantis (NASDAQ:STLA) plans to offer 30 hybrid models in Europe by 2024, with sales already increasing by 41% in 2024 compared to the previous year. Partnerships play a vital role in its electrification strategy, such as collaborating with NHOA Energy to develop the Atlante fast-charging network in southern Europe, aiming for 5,000 fast charge points by 2025.

In September, It announced a $406 million investment to improve EV and hybrid production capabilities at three facilities in Michigan, which shows its commitment to a multi-energy strategy that incorporates electric, range-extended, and internal combustion engine models.