8 Best EV Battery Stocks To Buy in Late 2024

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 85

Tesla, Inc. (NASDAQ:TSLA) is the pioneer in EVs and has significant operations in the battery market and solar technology. The company is investing $3.6 billion in a new battery factory in Nevada to produce larger 4680 battery cells, which are crucial for the Cybertruck, requiring about 7 GWh of battery capacity each year.

As part of its vertical integration strategy, the company is also putting $1 billion into a lithium refinery in Texas, which will produce battery-grade lithium hydroxide using sustainable methods. The facility is projected to yield 50 GWh annually, improving the company’s battery supply chain and improving cost efficiency.

On October 23, Tesla (NASDAQ:TSLA) reported its earnings, beating the EPS estimates while missing the revenue forecasts. The company reported an EPS of $0.72, up from $0.66 in the same quarter of last year, and exceeded the forecasts by $0.12. The revenue of $25.18 billion missed the estimates by $490 million but was still up 8% year-over-year. Moreover, the company’s free cash flow was up over 223% at $2.74 billion.

Tesla’s (NASDAQ:TSLA) cost of goods sold (COGS) per vehicle fell to a record low of approximately $35,100. Moreover, the company’s Megafactory in Lathrop produced 200 Megapacks (large-scale rechargeable lithium-ion battery stationary energy storage product) in a single week. Powerwall deployments set a new record for the second consecutive quarter as it ramped up production of Powerwall 3. In the third quarter, the Cybertruck ranked as the third top-selling electric vehicle in the U.S., following the Model Y and Model 3.

While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) 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 TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.