In this article, we discuss the 7 best EV stocks under $50 and the latest updates around the EV industry.
EV Sales are Growing
Since 2018, electric vehicle (EV) sales have been rapidly growing as the world tries to reach its carbon neutrality goal by 2050. According to the International Energy Agency (IEA), only 2% of new vehicles registered globally were electric vehicles, and reached 18% by the end of 2023. Even though most of these sales were concentrated in China, Europe, and the US, other markets such as India, Thailand, Vietnam, and Latin America have also been adopting the EV trend at a fast pace.
In 2024, while the high costs due to interest rates stalled EV sales a little, they are still growing at a significant pace as the sales reached 3.4 million units in Q1, compared to 2.6 million in the first quarter of 2023, according to the IEA. Furthermore, the accounting and consulting firm, PwC analyzed 21 markets and found out that in the second quarter of 2024, 37% of vehicles sold in these markets were battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), or hybrids, marking an increase from 30% in the same period of 2023. At the same time, overall EV sales rose by 21% compared to Q2 2023, while sales of internal combustion engine (ICE) vehicles declined by 9% during the same period.
BloombergNEF’s Long-Term Electric Vehicle Outlook shows that as technology improves and battery prices drop, EV adoption is increasingly driven by consumer demand. Passenger EV sales are expected to surpass 30 million units in 2027 and reach 73 million units by 2040.
Global EV Market to Reach $63 Trillion by 2050
Despite such progress, strong policy support is still needed, as only 69% of the global car fleet is expected to be electrified by 2050 in the base case scenario, short of the 100% target in the Net Zero scenario.
Heavy trucks and other segments lag in reaching net zero and full combustion vehicle sales need to stop by 2038 to reach the goal. The report states that the global EV market could reach $63 trillion by 2050, with significant investment needed in battery production and charging infrastructure.
According to estimates by Fortune Business Insights, the global EV market is expected to grow at a compound annual growth rate of 13.8% from 2024 to 2032, and Asia is currently the dominant region with a 51.24% market share. This is the time for investors to take positions in EV stocks, as the EV market is just getting started and is poised for a lot of growth.
7 Best EV Stocks Under $50
Our Methodology
For this article, we used the FinViz stock screener to identify over 25 electric vehicle manufacturers with a stock price of under $50, as of August 7. We narrowed down our list to 7 stocks that were most widely held by institutional investors and listed the stocks in ascending order.
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).
7 Best EV Stocks Under $50
7. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 17
Share Price as of August 7: $2.91
Lucid Group, Inc. (NASDAQ:LCID) is a U.S.-based electric vehicle manufacturer and designer. The company specializes in creating high-end electric vehicles to meet the demand for luxury EVs. A significant aspect of the company’s approach is its focus on cutting-edge technology, which plays a crucial role in creating premium vehicles.
This innovative technology is evident in the design of its motors and the performance of its batteries, enabling Lucid Group (NASDAQ:LCID) to provide exceptional range and superior performance in the market. The company is one of the best EV stocks under $50.
Lucid Group (NASDAQ:LCID) is generating significant excitement with its upcoming Gravity SUV, a key product in its plans to expand its presence in the electric vehicle market. The Gravity, which is set to hit the streets by the end of 2024, recently saw its first preproduction model come off the assembly line. This SUV is more than just a new vehicle for the company, it is a crucial step toward reaching a broader customer base.
Additionally, Lucid Group (NASDAQ:LCID) secured substantial financial support from an affiliate of the Saudi Arabian Public Investment Fund (PIF). This includes a $750 million loan facility and a $750 million investment in convertible preferred stock.
This $1.5 billion in funding is crucial for the company, assisting with both capital expenditures and operational costs as it ramps up production of the Gravity SUV. The support positions the company to potentially capture a larger share of the consumer market beyond its current focus on high-end electric sedans.
Lucid Group (NASDAQ:LCID) was held by 17 hedge funds in the first quarter and the stakes amounted to $26.85 million. Coatue Management is the most significant shareholder of the company and has a position worth $8.42 million, as of March 31.
6. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 19
Share Price as of August 7: $3.67
NIO Inc. (NYSE:NIO) is a leading electric vehicle maker in China known for its advanced electric cars. The company focuses on developing, manufacturing, and selling high-performance electric vehicles with a strong emphasis on luxury, technology, and eco-friendliness.
NIO (NYSE:NIO) has gained popularity for its electric SUVs, including the ES6 and ES8 models, and its innovative battery-swapping technology. It is one of the best EV stocks under $50.
At a stake value of $79.322 million, 19 hedge funds held positions in NIO (NYSE:NIO) in the first quarter. As of Q1, Davidson Kempner is the top shareholder in the company and has a position worth $18 million.
NIO (NYSE:NIO) is showing promising signs of recovery and growth, even though the first half of the year posed challenges. The company’s vehicle deliveries have markedly improved, delivering 57,373 vehicles in the quarter ending June 30, which is a significant increase from earlier in the year. This surge in deliveries represents a 144% year-over-year rise and has exceeded management’s forecasts.
In May, NIO (NYSE:NIO) introduced a new subsidiary brand called Onvo, aimed at the mass market. The first model under this brand, the L60, is a midsize SUV currently in its pre-order phase. Despite deliveries not being expected until September 2024, pre-orders for the L60 have been exceptionally strong, surpassing expectations by two to three times.
NIO (NYSE:NIO) plans to expand its market presence further with the upcoming release of its Firefly model. This new vehicle is set to be available in China starting in the fourth quarter of 2024, with a price range of RMB 100,000 to 200,000 (1 RMB = US$0.14 as of August 7). It will enter the European market in the second quarter of 2025.
The Firefly will complement NIO’s (NYSE:NIO) recent Onvo launch, targeting the RMB 200,000 to 300,000 range, while its existing models cater to the higher end of the market, above RMB 300,000. This broad range of offerings is a testament to the company’s ability to serve various market segments, from value to premium, enhancing its overall market position.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 26
Share Price as of August 7: $13.78
Rivian Automotive, Inc. (NASDAQ:RIVN) is engaged in designing, developing, manufacturing, and selling electric vehicles and related accessories. The company produces two all-electric models for consumers, the R1T, which is a pickup truck, and the R1S, an SUV.
Rivian Automotive (NASDAQ:RIVN) is also working on delivering an initial order of 100,000 specially designed electric delivery vans for Amazon.
Additionally, Rivian Automotive (NASDAQ:RIVN) offers a range of consumer services including digital financing and leasing options, telematics-based insurance, and vehicle maintenance and repair. The company operates the Rivian Adventure Network, which includes Direct Current fast chargers, and provides access to the Combined Charging Standard. It also offers FleetOS, a comprehensive fleet management subscription platform.
Rivian Automotive (NASDAQ:RIVN) is one of the best EV stocks under $50. In Q1, 26 hedge funds had investments in the stock worth $349.178 million.
Rivian Automotive (NASDAQ:RIVN) is making significant strides in the EV market as highlighted by a substantial new investment from Volkswagen. At the end of June, the company secured a major commitment from the global automotive leader, starting with a $1 billion investment.
Over the next two years, Volkswagen plans to invest up to $5 billion in Rivian Automotive (NASDAQ:RIVN). This includes a $2 billion purchase of the company’s common stock and another $2 billion for the establishment of a joint venture (JV). The JV will focus on developing advanced electrical architecture and software technology. As part of the agreement, Rivian Automotive (NASDAQ:RIVN) will license its existing intellectual property to the new venture.
The partnership could bring Rivian Automotive (NASDAQ:RIVN) an additional $4 billion if it meets specific milestones and obtains regulatory approvals. The transaction is expected to be finalized by the end of the year. This significant investment not only boosts the company’s financial position but also supports its efforts to advance EV technology and expand its market reach.
Meridian Hedged Equity Fund stated the following regarding Rivian Automotive, Inc. (NASDAQ:RIVN) in its first quarter 2024 investor letter:
“Rivian Automotive, Inc. (NASDAQ:RIVN) is a US-based manufacturer of electric vehicles, namely the R1T pickup truck and R1S SUV. They also have exposure to the commercial vehicle market with their electric delivery vans (EDVs) that are sold to companies like Amazon. The company has faced challenges amid the broader slowdown in electric vehicle demand and rising interest rates. This has contributed to Rivian underperforming expectations over the past few quarters. Rivian has also incurred losses as it continues to invest in the development of its products and manufacturing capabilities. We own Rivian in a hedged structure, which provides a significant margin of safety. Despite the near[1]term challenges, several factors provide optimism that Rivian can emerge as a long-term winner in the EV market. Rivian’s balance sheet is strong, with a substantial cash position that enables the company to continue investing in its growth and navigate through the current economic headwinds. Rivian is also unveiling the R2, which is a smaller and more affordable EV platform that will open the company’s products to a wider customer base. Lastly, Rivian’s investment in the enhancement of its production capabilities should improve the company’s manufacturing efficiency and drive a path to profitability. We continue to hold the company in a hedged structure.”
4. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 29
Share Price as of August 7: $19.23
Li Auto Inc. (NASDAQ:LI) is a Chinese company that is engaged in designing, producing, and selling high-end smart electric vehicles. The company focuses on the mid to premium segments of the automotive market. It offers a range of models including multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs).
Since launching its initial model, the Li ONE, Li Auto (NASDAQ:LI) has broadened its range with additional models such as the Li L9, Li L8, Li L7, and Li L6, which are designed with family-friendly features and advanced smart technology.
Li Auto (NASDAQ:LI) began delivering its vehicles in 2019 and saw rapid growth in the following years. Although the company faced challenges in 2022 due to supply chain issues, macroeconomic pressures, and increased competition in the Chinese EV market, it rebounded strongly in 2023. This resurgence highlights Li Auto’s (NASDAQ:LI) resilience and adaptability.
In July, Li Auto (NASDAQ:LI) set a new record by delivering 51,000 vehicles, marking a nearly 50% increase from the previous year. This impressive performance pushed the company’s total deliveries for 2024 to approximately 240,000 units, and the growth continued with a 6.75% increase from June. As of the end of July, the company had delivered a cumulative total of around 873,000 vehicles.
A significant highlight is the success of Li Auto’s (NASDAQ:LI) new L6 model. With over 20,000 units sold as of July, this model has quickly become popular in the RMB200,000 to RMB300,000 price range. The strong market reception for the L6 reflects the company’s effective market research and its ability to address consumer needs with its latest offerings. This success bodes well for the company’s future, showcasing its capability to innovate and capture market share.
In the first quarter, 29 hedge funds had stakes in Li Auto (NASDAQ:LI), with total positions worth $796.400 million. As of March 31, Israel Englander’s Millennium Management is the most dominant shareholder in the company. The firm increased its position by 383% to 4.07 million shares worth $123.197 million.
3. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 35
Share Price as of August 7: $15.39
Stellantis N.V. (NYSE:STLA), one of the Big Three automakers, is involved in the design, engineering, production, distribution, and sale of automobiles, light commercial vehicles, and engines, among other products.
Formed through the merger of Fiat Chrysler Automobiles and PSA Group, the company offers a range of vehicles, including luxury and premium models, as well as SUVs. The company markets its vehicles under a diverse range of brands, such as Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, and others. It is one of the best EV stocks under $50.
Stellantis (NYSE:STLA) is driven by its strong global and local presence. With a broad portfolio of well-established brands, the company effectively caters to various markets and consumer preferences. The company is ambitiously shifting towards electric vehicles, setting a target to have all its sales in Europe and half in the U.S. come from battery electric vehicles (BEVs) by the end of the decade.
Additionally, Stellantis (NYSE:STLA) aims to achieve 5 million global BEV sales annually by 2030. In Europe, the company’s electric models are performing exceptionally well. The Fiat 500e ranks among the top-selling EVs in Italy, and the Peugeot e-208 was the leading EV in France during the first quarter of 2024.
On July 31, Nomura analyst Anindya Das upgraded Stellantis (NYSE:STLA) to Buy from Neutral with a price target of EUR 21, down from EUR 24. This upgrade reflects optimism about the company’s plans to tackle challenges in North America. The company has invested significantly in launching a range of new, cost-effective products in Europe, following a consolidation of its production platforms.
The efforts are expected to help the company navigate slower sales growth in the European market. With its current share price offering a 10% dividend yield, the analyst sees the company as an attractive investment, combining strong future growth prospects with substantial shareholder returns.
According to our database, 35 hedge funds held stakes in Stellantis (NYSE:STLA) in the first quarter, with positions worth $556.400 million. TOMS Capital is the largest shareholder of the company, as of March 31, and has a stake worth $137.821 million.
Ariel Global Fund stated the following regarding Stellantis N.V. (NYSE:STLA) in its first quarter 2024 investor letter:
“We added multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA), which was formed from the merger of Fiat Chrysler Automobiles and the French PSA Group in the period. With deal synergies lowering overall operating expenses and contributing to healthy free cash flow generation, management has begun increasing shareholder returns through dividends and share buybacks. Although some investors remain on the sidelines over concerns auto sales and margins have peaked, STLA’s average transaction price is growing year-over-year. We think this momentum will continue and expect STLA to deliver double-digit operating profit margin as it further expands its leading position in the Middle East and South America. Furthermore, the company’s Leapmotor joint venture presents a unique way to benefit from the strengths of Chinese original equipment manufacturers. Meanwhile, in the current electric vehicle slowdown environment, we believe STLA is best positioned to weather the storm. Management believes it can maintain profitability and is open to rationalizing its 14 brands. STLA seeks to be number one in the commercial vehicle segment by 2027, which comes with high customer stickiness, solid profitability and recurring revenue streams.”
2. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 41
Share Price as of August 7: $9.77
Ford Motor Company (NYSE:F) is one of the biggest names in the automotive industry in the world. The company manufactures and sells a range of commercial and luxury vehicles under the brand names Ford and Lincoln, respectively. While Ford (NYSE:F) is mostly known for its gas-guzzling muscle cars and trucks, the company is also making significant strides in the EV industry.
The company’s CEO, Jim Farley announced plans to introduce a $30,000 all-electric vehicle in about two and a half years, emphasizing that profitability is a key focus. During the Aspen Ideas Festival held around the last week of June, Farley revealed that this vehicle, developed by a specialized Ford team, is intended to compete with Chinese automakers like BYD and an upcoming entry-level Tesla (NASDAQ:TSLA) model.
Ford (NYSE:F) is prioritizing smaller, more affordable EVs over larger all-electric trucks and SUVs, as Farley believes the latter is unlikely to be profitable due to the high costs of large battery packs. He highlighted the need for a shift in focus to smaller vehicles for both economic and environmental reasons, despite the historical profitability of larger vehicles like the company’s trucks.
Apart from that, Ford (NYSE:F) is also a shareholder-friendly company as it was mentioned in our best dividend-paying stocks under $15 article. We mentioned the company’s strong cash and liquidity position which allows the company’s long-term growth and returns to shareholders. The company has consistently issued supplemental dividends to shareholders over the years, alongside its regular common dividend. As of August 7, the company has a dividend yield of 6.1% with a payout ratio of a little over 31%.
In Q1, 41 hedge funds had stakes in Ford (NYSE:F), amounting to $1.54 billion. The most prominent stake is held by Ken Fisher’s Fisher Asset Management with 62.52 million shares worth $830.301 million.
1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 78
Share Price as of August 7: $40.65
General Motors Company (NYSE:GM) is a leading American automotive manufacturer that designs and sells trucks, crossovers, cars, and automobile parts. The company is famous for its diverse portfolio, which includes well-established brands such as Chevrolet, GMC, Cadillac, and Buick.
General Motors (NYSE:GM) runs through GM North America, GM International, Cruise, and GM Financial segments. It offers other services to customers, including financing options, vehicle maintenance, and advanced connectivity features.
General Motors (NYSE:GM) tops our list of the best EV stocks under $50. The stock was held by 78 hedge funds in the first quarter and the total stakes amounted to $4.8 billion.
General Motors (NYSE:GM) is making significant strides in the EV market. As the first major automaker to offer modern EVs, the company initially provided its vehicles only through lease agreements. Now, the company is shifting its focus to electric vehicles, with plans to phase out the production of gasoline and diesel models by 2035.
It plans to ramp up its EV production to 1 million units annually in North America by the end of 2025. The company is introducing electric models across its main brands, including Chevrolet, Buick, GMC, and Cadillac.
A major part of General Motors’ (NYSE:GM) push towards an all-electric future involves its Ultium battery platform, which represents a significant technological advancement. The company is also converting facilities, like its Orion Assembly plant, to support EV production.
Its joint venture, Ultium Cells Holdings, is expanding to produce battery cells at a larger scale, which is important for meeting the ambitious production target of 1 million EVs by 2025.
In the second quarter, the company saw a 21% increase in EV deliveries compared to the previous year. It signifies the growing consumer interest in electric vehicles and the company’s progress in this area.
Diamond Hill Large Cap Strategy stated the following regarding General Motors Company (NYSE:GM) in its first quarter 2024 investor letter:
“Other top contributors included Allstate, Caterpillar and General Motors Company (NYSE:GM). Automobile manufacturer General Motors continues capitalizing on the shift to electric vehicles (EVs) while maintaining the strength of its core gas-engine truck and SUV business. Though it has experienced some setbacks — such as needing to roll back its Cruise driverless car project — we believe the company remains well-positioned relative to secular tailwinds within the automobile business.”
While we acknowledge the potential of General Motors Company (NYSE:GM) to grow, 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 NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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