We recently compiled a list of the 15 Biggest EV Stocks in the World in 2024 and in this article, we discuss whether Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is the largest EV stock globally in 2024.
According to the Global EV Outlook 2024 by the International Energy Agency, electric car sales surged in 2023, reaching nearly 14 million globally. This represents a 35% jump from 2022 and brings the total number of electric cars on the road to 40 million. Weekly registrations in 2023 surpassed the entire annual total from just ten years ago. Electric cars now account for 18% of all car sales globally, a significant climb from 2% in 2018. This rapid growth indicates a maturing electric car market with strong momentum. Interestingly, battery electric cars make up the majority (70%) of electric vehicles on the road today.
Approximately 95% of these sales were concentrated in China, Europe, and the United States, which dominate new electric car registrations. In these regions, electric cars represent a significant share of their local markets, with over 30% in China and over 20% in Europe. As these three key markets account for two-thirds of total car sales globally, their swift adoption of electric vehicles has a significant influence on worldwide trends.
As a result, many of the major EV manufacturers are based in these countries. However, emerging players are also making their mark in other regions. For instance, a subsidiary of Vietnamese conglomerate Vingroup made its debut on NASDAQ in August 2023. The company was valued at approximately $23 billion through a SPAC deal with Black Spade. The company has already entered the North American market, importing about 2,100 EVs from Vietnam to the US and 800 to Canada.
In addition to US, China, and Europe, emerging markets like Southeast Asia and Brazil are also seeing rising EV sales, supported by various incentives and investments. In terms of the future outlook for electric vehicles, the long-term goals of top automakers in the world are quite ambitious. If achieved, they could put over 20 million electric cars on the road by 2030. This will lead to electric vehicles making up between 42% and 58% of car sales by 2030, exceeding even the most optimistic forecasts. The electric vehicle market size is predicted to reach over $950 billion by 2030 with a compound annual growth rate (CAGR) of 13.7% between 2023 and 2030.
Key drivers for growth in the Global EV market include decreasing EV battery prices and supportive government policies. The fastest-growing market segments are fuel-cell electric vehicles (FCEVs) and mid-priced EVs. Additionally, the Asia-Pacific region is expected to lead market growth. However, challenges such as high initial investments for charging infrastructure could impede growth.
A fleet of electric light vehicles recharging their batteries in a parking lot.
Our Methodology
To compile our list of the 15 biggest EV stocks in the world in 2024, we shortlisted companies on the basis of their market capitalization. We have only included companies that are pure play in the EV sector or have substantial exposure to the sector. The biggest EV stocks in the world in 2024 have been ranked in ascending order of their market capitalization figures in USD. We also scanned our database of 919 hedge funds (as of Q1 2024) to share the number of hedge fund investors, where applicable.
“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).”
Is Polestar Automotive Holding UK PLC (NASDAQ:PSNY) the Largest EV Stock Globally in 2024?
Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Market Capitalization: $1.63 Billion
Number of Hedge Fund Holders: 12
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is a Swedish EV maker. The company was founded in 1996.
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) has begun manufacturing the Polestar 3 SUV in China and has completed test runs at their US factory. It is on track for a mid-2024 US launch. This is a key step in the company’s plan to offer 5 EVs by 2026.
In 2023, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) recorded the delivery of 54,600 cars, reflecting a 6% YoY increase, with 880 Polestar 4s sold in China. To support their goal of profitability and expansion by 2025, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) also secured a $1 billion loan.
Analysts predict a significant stock price increase with an average target of $3.94, which reflects an over 400% jump from the current price of $0.75.
As of the first quarter of 2024, 12 hedge funds held a stake in Polestar Automotive Holding UK PLC (NASDAQ:PSNY). The positive hedge fund sentiment makes Polestar Automotive Holding UK PLC (NASDAQ:PSNY) one of the top EV stocks to buy right now.
Overall, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) ranks 14th among the 15 biggest EV stocks in the world in 2024. You can visit the 15 Biggest EV Stocks in the World in 2024 to see the other electric vehicle companies that are on the hedge fund radar.
While we acknowledge the potential of electric vehicle companies, 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.
Read Next: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.
Disclosure. None. This article is originally published on Insider Monkey.
