In this article, we will look at the 12 most promising EV stocks to buy now according to analysts. If you want to explore similar stocks, you can also take a look at 5 Most Promising EV Stocks According to Analysts.
The Global EV Industry: An Analysis
The global electric vehicle (EV) industry is experiencing unprecedented growth, driven by increasing demand for clean and efficient transportation, along with government incentives and supportive policies. According to a report by Precedence Research, the global EV industry was valued at $208.58 billion in 2022 and is expected to reach a value of $1.10 trillion by 2030, growing at a compound annual growth rate of 23.1% over the forecasted period.
The rapid growth of the EV industry is attributed to a variety of factors. Firstly, with advancements in battery technology, battery costs are falling and making EVs more affordable and accessible to consumers. As EVs have become more affordable and are now being viewed as a more eco-friendly and viable alternative to their ICE-powered rivals, EV adoption has accelerated across the globe. Moreover, governments around the world are focused on reducing carbon emissions and so have implemented measures to increase the demand for electric vehicles. In recent years, governments have announced numerous incentives and subsidies, to both EV makers and consumers, in order to incentivize the purchase of electric vehicles. According to Precedence Research, the United States, China and Europe have all seen a considerable rise in electric vehicle sales in recent years, and this trajectory is expected to continue over the forecasted period.
By propulsion type, battery-electric vehicles (BEVs) held the largest revenue share of the global EV industry, roughly 67%, in 2022. However, the plug-in hybrid EV (PHEV) segment is expected to grow at a relatively faster compound annual growth rate, an estimated 43.5%, over the forecasted period primarily due to the cost benefits that PHEVs have over BEVs. Moreover, PHEVs also cater to diverse users’ needs since they can be refilled at a gas station as well as charged at a charging point. Finally, the fuel cell electric vehicle (FCEV) segment is expected to record the fastest growth rate over the forecasted period due to hefty investments being poured by both governments and organizations to advance the technology.
Overall, the global EV industry is on track to become a trillion dollar industry by 2030. By investing in EV stocks, investors can capitalize on the secular growth trends of this booming industry. Some of the most prominent players that are leading the global EV industry include Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F). However, for the purposes of this article, we will focus on the most promising EV stocks to buy now according to Wall Street analysts.
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Our Methodology
To determine the most promising EV stocks, our focus was on pure-play EV companies that are popular among Wall Street analysts. Not only did we review EV makers for this list, we also reviewed companies that develop charging infrastructure for electric vehicles, battery manufacturing companies, fuel cell companies, and other segments of the broader EV industry. We preferred stocks that have received wide coverage from Wall Street analysts, have consensus Buy ratings, and have significant upside potential.
For each stock, we sourced the average price target and average upside potential from TipRanks. We narrowed down our list to stocks that had the highest average upside potential, as of February 14, and ranked our picks in ascending order of this metric.
Most Promising EV Stocks According to Analysts
12. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 15
Average Upside Potential as of February 14: 22.65%
Lucid Group, Inc. (NASDAQ:LCID) is an American EV technology company that is involved in the development of EV technologies, electric vehicles, and EV powertrains. The stock is one of analysts’ favorite EV stocks. The stock has received 3 Buy ratings and 2 Hold ratings from analysts over the past 3 months and has an average price target of $12.67, which represents an upside of 22.65% from current levels.
On February 9, Lucid Group, Inc. (NASDAQ:LCID) announced a promotion on the Touring and Grant Touring models of the Lucid Air. Customers will be eligible to receive $7,500 in EV credit on the purchase of the company’s selected Air models. The offer ends on March 31, 2023.
This January, Citi analyst Itay Michaeli resumed coverage of Lucid Group, Inc. (NASDAQ:LCID) with a Buy rating and a $12 price target.
At the end of Q3 2022, 15 hedge funds were bullish on Lucid Group, Inc. (NASDAQ:LCID) and disclosed positions worth $99.5 million in the company.
Some of the most popular EV stocks, among elite money managers, include Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F).
11. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 20
Average Upside Potential as of February 14: 22.97%
Li Auto Inc. (NASDAQ:LI) is a Chinese automaker that primarily focuses on manufacturing premium and luxury electric SUVs. In addition to being one of the most promising EV stocks according to analysts, Li Auto Inc. (NASDAQ:LI) is also one of the most promising Chinese stocks to buy now.
On February 9, Citi analyst Jeff Chung raised his price target on Li Auto Inc. (NASDAQ:LI) to $51.50 from $48 and reiterated a Buy rating on the shares. The stock has a consensus Buy rating among analysts and an average price target of $31.53, which represents an upside of 22.97% from current levels. Over the past 3 months, 8 Wall Street analysts have given Buy ratings on Li Auto Inc. (NASDAQ:LI).
At the close of Q3 2022, 20 hedge funds were long Li Auto Inc. (NASDAQ:LI) and held positions worth $1.07 billion in the company. As of December 31, Viking Global is the top shareholder in Li Auto Inc. (NASDAQ:LI) and has a stake worth $185 million in the company.
10. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 20
Average Upside Potential as of February 14: 24.15%
XPeng Inc. (NYSE:XPEV) was held by 20 hedge funds at the end of Q3 2022. The total stakes of these hedge funds was valued at $178.3 million. As of December 31, Two Sigma Advisors is the largest shareholder in the company and has a stake worth $30.7 million.
XPeng Inc. (NYSE:XPEV) is one of the most promising EV stocks according to analysts. The stock has a consensus Hold rating and an average price target of $11.72. Over the past 3 months, the stock has received 7 Buy ratings and 3 Hold ratings from analysts. The stock has the potential to gain 24.15%, on average, from its share price on February 14.
On February 3, XPeng Inc. (NYSE:XPEV) launched its two new EVs in Europe at the eCar Expo in Stockholm. The company’s G9 SUV and P7 sports sedan are now available for purchase in Denmark, Norway, the Netherlands, and Sweden.
9. The Lion Electric Company (NYSE:LEV)
Number of Hedge Fund Holders: 12
Average Upside Potential as of February 14: 58.33%
The Lion Electric Company (NYSE:LEV) is a leading Canadian manufacturer of electric commercial vehicles. The company also offers battery systems, chassis, bus bodies, truck cabins, and related parts & accessories. This February, Northland analyst Abhishek Sinha took coverage of The Lion Electric Company (NYSE:LEV) with an Outperform rating and a $5 price target. Sinha noted that the company has a significant competitive advantage due to its proven technology and is ready to expand, reduce costs, and capture more market share in the North American electric vehicle market.
Over the past 3 months, The Lion Electric Company (NYSE:LEV) has received 2 Buy ratings and 3 Hold ratings from Wall Street analysts and has a consensus Buy rating. The stock has an average price target of $3.80 which represents a potential upside of 58.33% from its closing price on February 14. The Lion Electric Company (NYSE:LEV) is one of analysts’ most promising EV stocks to buy now.
At the end of the third quarter of 2022, The Lion Electric Company (NYSE:LEV) was a part of 12 investors’ portfolios that held collective positions worth $16.13 million in the company. As of December 31, Steve Cohen’s Point72 Asset Management is the top investor in the company and has disclosed a position worth $2.58 million.
8. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 13
Average Upside Potential as of February 14: 58.63%
ChargePoint Holdings, Inc. (NYSE:CHPT) is a leading American provider of EV charging infrastructure. The company offers hardware, software, and services for commercial, fleet, and residential customers across the globe. As of February 14, ChargePoint Holdings, Inc. (NYSE:CHPT) has gained over 40% year to date.
On January 26, JPMorgan analyst Bill Peterson updated his price target on ChargePoint Holdings, Inc. (NYSE:CHPT) to $16 from $18 and maintained an Overweight rating on the shares. Over the past 3 months, the stock has received 5 Buy ratings and 2 Hold ratings from Wall Street analysts. The stock has an average price target of $19.29 which implies an upside of 58.63% from current levels. ChargePoint Holdings, Inc. (NYSE:CHPT) is one of the most promising EV stocks to buy now according to analysts.
ChargePoint Holdings, Inc. (NYSE:CHPT) was spotted on 13 investors’ portfolios at the end of Q3 2022. The total stakes of these hedge funds were valued at $71.6 million.
7. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 26
Average Upside Potential as of February 14: 65.96%
NIO Inc. (NYSE:NIO) is another Chinese EV stock popular among Wall Street analysts. As of December 29, China Renaissance analyst Yiming Wang has a $10.40 price target and a Hold rating on NIO Inc. (NYSE:NIO).
NIO Inc. (NYSE:NIO) has a consensus Buy rating among Wall Street analysts. Over the past 3 months, 8 analysts have given Buy ratings on the stock and 3 analysts have recommended to Hold the stock. NIO Inc. (NYSE:NIO) has a maximum price target of $28 and an average price target of $17.11. The stock has the potential to gain 65.96%, on average, from its closing price on February 14. NIO Inc. (NYSE:NIO) is one of the most promising EV stocks to buy now according to analysts.
At the close of Q3 2022, NIO Inc. (NYSE:NIO) was held by 26 hedge funds. The total value of these funds’ stakes in the company amounted to $$518.9 million. As of December 31, Electron Capital Partners is the most prominent shareholder in NIO Inc. (NYSE:NIO) and has disclosed a position worth $61.4 million.
6. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 30
Average Upside Potential as of February 14: 75.17%
Rivian Automotive, Inc. (NASDAQ:RIVN) is a leading American EV manufacturer. At the close of Q3 2022, 30 hedge funds were bullish on Rivian Automotive, Inc. (NASDAQ:RIVN) and disclosed positions worth $1.96 billion in the company.
On February 14, Barclays analyst Dan Levy took coverage of Rivian Automotive, Inc. (NASDAQ:RIVN) with an Overweight rating and a $28 price target. Over the past 3 months, Rivian Automotive, Inc. (NASDAQ:RIVN) has received 10 Buy ratings and 3 Hold ratings from Wall Street analysts and has an average price target of $34.14. The stock’s average price target represents an upside of 75.17% from current levels. Rivian Automotive, Inc. (NASDAQ:RIVN) is one of analysts’ EV stock picks with the most promising upside potential.
Rivian Automotive, Inc. (NASDAQ:RIVN) is one of George Soros’ top stocks as of Q4 2022. As of December 31, Soros Fund Management is the largest investor in Rivian Automotive, Inc. (NASDAQ:RIVN) and has disclosed a position worth $264.3 million in the company.
Here is what Baron Funds had to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its fourth-quarter 2022 investor letter:
“Consumer Discretionary investments along with the lack of exposure to the strong performing Energy sector offset a portion of the above-mentioned gains. Within Consumer Discretionary, the underperformance of electric vehicle (EV) manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN) coupled with lower exposure to this better performing sector hampered relative results. Rivian’s shares fell as investors fretted over the company’s unit economics and how macroeconomic uncertainty is impacting the EV industry.
Rivian Automotive, Inc. is an EV manufacturer producing vehicles for the consumer and corporate delivery van markets. Its shares were under pressure during the quarter. Investors remained focused on the company’s execution challenges, the implied unit economics for its vehicles, and near-term headwinds for the automotive industry stemming from a weaker global economy. Despite these headwinds, we are comfortable with Rivian’s liquidity position and its competitive position within the EV industry, which we believe will continue to grow at impressive rates. Rivian should also benefit from its positive product reviews, its integrated technology approach, and its industry partnerships.”
In addition to Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F), Rivian Automotive, Inc. (NASDAQ:RIVN) is also well-positioned to capture further market share of the EV industry due to its innovative and cutting-edge vehicles.
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Disclosure: None. 12 Most Promising EV Stocks According to Analysts is originally published on Insider Monkey.