3 EV stocks to buy as a new bull market emerges
Electric vehicle stocks are an attractive investment opportunity in today’s market as the world moves toward a greener future.
Investors have the opportunity to profit from investing in electric vehicle stocks. They offer good returns and provide investors with the opportunity to invest in a socially responsible industry that helps reduce emissions and create a cleaner environment.
Electric vehicle stocks are particularly attractive right now as the market turns bullish. Some electric vehicle stocks are currently trading at discounted prices from their previous highs, opening up a great opportunity to make money. This is the perfect time to take advantage of it.
| TSLA | You’re here | $144.85 |
| LI | Li-Auto | $23.51 |
| SHORE | Rivian | $18.30 |
Tesla (TSLA)
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You’re here (NASDAQ:TSLA) is ahead of its competitors in the electric vehicle industry and is coming off a banner year with more deliveries than ever and increased production capacity.
Despite this, Tesla stock fell more than 90% due to the crash in the tech sector. Growing competition in the electric vehicle industry and slowing consumer spending are also factors.
Despite the drop, Tesla is still focused on its long-term plans and growth. The latest reports suggest that the automaker is expected to manufacture one million cars a year in Indonesia. It would be a major step towards achieving its ambitious goal of producing 20 million electric vehicles per year by 2030.
In 2022, Tesla has made huge strides in maximizing its production performance. It opened two brand-new gigafactories last year, one in Austin and the other in Berlin, helping them reach two million vehicles this year.
Li Auto (LI)
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Li-Auto (NASDAQ:LI) performed exceptionally despite market concerns.
Li Auto produced 21,233 vehicles in December and a year-on-year growth of 50.7%.
At the end of 2022, Li Auto delivered 47% more vehicles than the previous year. The Li L9 and Li L8 SUVs were the top performers and sold over 10,000 units each in December alone.
While the company still faces bottom line losses, that’s not uncommon for a fledgling electric vehicle maker.
Li Auto is also revolutionizing the electric vehicle market in China with its extended range vehicles.
Li Auto invests heavily in technology to make its SUVs very attractive for the premium sector. Its objective is to differentiate itself from its competitors through its offers. Additionally, it plans to introduce an all-battery electric model by 2023.
Rivian (RIVN)
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Since Rivian (NASDAQ:SHORE) went public in 2021, the company has seen an increase in revenue but still faces profitability issues. The main one is its increased emphasis on partnership activities rather than organic growth.
One of the company’s biggest backers is Amazonwhich acquired around 18% of the shares in 2019 under a partnership agreement.
In September, Rivian took the partnership even further. It will work with Amazon to replace gas-powered delivery vehicles with electric vehicles.
Unfortunately, Rivian did not reach its goal of 25,000 electric vehicles in 2022. Initially, this goal was set at 50,000, so even achieving the lowered projection cannot be considered a major success.
On the bright side, production rapidly increased in the fourth quarter, reaching over 10,000 units. Rivian investors in 2023 will be eager to see additional growth as this is a key driver for them.
Another area of concern is cash burn. Rivian is rapidly depleting its cash reserves and will soon have to become profitable or risk running out of cash.
Over the past year, the company’s cash and cash equivalents balance has decreased by nearly $5 billion.
Rivian has the potential to be a great EV stock if it can meet the challenges it faces. If it does so successfully, then Rivian looks like a solid investment.
At the date of publication, Faizan Farooque did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines. However, there are two areas management needs to monitor.
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