We recently published a list of 10 Most Oversold EV Stocks to Buy According to Analysts. In this article, we are going to take a look at where LiveWire Group, Inc. (NYSE:LVWR) stands against other most oversold EV stocks to buy according to analysts.
As per PwC, the race for EV adoption has been heating up, thanks to the tailwinds such as consumer interest, robust buy-in by automakers, and accelerated government funding. The electric transportation saw strong support from the 2021 Infrastructure Investment and Jobs Act – which finances $7.5 billion in EV charging infrastructure. Furthermore, the Inflation Reduction Act offered tax credits for new and used electric passenger and commercial vehicles.
What’s Next for EV Market?
As per Research and Markets, the EV market is anticipated to reach US$1.58 trillion in 2033 from US$600.13 billion in 2024. The growth is expected to be aided by increased public awareness, the requirement for reducing emissions, developments around battery technology, supportive government policies and incentives, and strong investments in renewable energy sources.
Governments and consumers continue to adopt EVs as a cleaner alternative to conventional ICE vehicles because of elevated concerns regarding environmental sustainability and the requirement to reduce greenhouse gas emissions, according to Research and Markets. Additionally, improvements in the electric car range, together with charging infrastructure due to battery technological developments, have been fueling industry expansion.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Factors to Support EV Transition
As per Dentons, the Polycentric Law Firm, emerging markets (EMs) continue to be central to global EV adoption, courtesy of increased urbanization, government incentives, and economic growth. Notably, the investments in EV infrastructure and battery technology have been fueling wider adoption. Furthermore, local manufacturing and innovation, including cost-effective EVs and off-grid charging stations, have been bolstering economic development in local EV industries of EMs.
The flexible manufacturing platforms continue to support OEMs in adapting more efficiently to fluctuating market dynamics, like regulatory changes and changes in consumer preferences. Dentons believes that alliances with Chinese EV makers are expected to allow legacy OEMs to use advanced EV technologies, cost-efficient production methods, and well-established supply chains provided by Chinese OEMs. This can help facilitate the transition of legacy OEMs to electrification. Overall, 2025 might need flexibility, innovation, and adaptation in the broader automotive industry amidst economic pressures and evolving consumer expectations. Through using the advancements in EVs, Software-Defined Vehicles (SDVs), and manufacturing technologies, OEMs can place themselves well in the highly competitive and dynamic market.
Our Methodology
To list the 10 Most Oversold EV Stocks to Buy According to Analysts, we sifted through several online rankings to shortlist the companies catering to the broader EV sector. Next, we chose the ones that have declined significantly over the past year and that analysts see significant upside to. Finally, the stocks were arranged in ascending order of their average upside potential, as of February 21. We also mentioned hedge fund sentiments around each stock, as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
LiveWire electric motorcycles being tested on a closed track in North America.
LiveWire Group, Inc. (NYSE:LVWR)
% Decline Over 1 Year: ~75.0%
Average Upside Potential: ~211.1%
Number of Hedge Fund Holders: 11
LiveWire Group, Inc. (NYSE:LVWR) is engaged in manufacturing electric motorcycles. In 2024, the company took numerous initiatives in a bid to navigate the market dynamics and turned challenges into opportunities to place the business for 2025. LiveWire Group, Inc. (NYSE:LVWR) expects to reduce its cash burn by 40% or more in 2025 as compared to 2024. It remains focused on establishing its leadership in the broader EV space. In FY 2024, the company reduced its consolidated selling, administrative, and engineering expenses by $12.6 million from the completion of the development work on the S2 platform, and initiatives adopted during the year around streamlining of headcount.
LiveWire Group, Inc. (NYSE:LVWR)’s consolidated net loss came in at $93.9 million for the year ended 2024 as compared to $109.6 million for the year ended 2023. The decrease of $15.7 million was due to a decline in selling, administrative, and engineering expenses (offset by the decline in revenue) and a rise in non-operating income of $14.8 million (offset by a decline of $4.8 million in interest income in comparison to the prior year). For FY 2025, LiveWire Group, Inc. (NYSE:LVWR) anticipates electric motorcycle sales of 1,000 – 1,500 revenue units and an operating loss of $70 million to $80 million.
Overall, LVWR ranks 1st on our list of most oversold EV stocks to buy according to analysts. While we acknowledge the potential of LVWR 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 time frame. If you are looking for a deeply undervalued AI stock that is more promising than LVWR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
