The electric vehicle (EV) market is a flourishing field, captivating both consumers and governments alike, gradually shifting preferences towards EVs over their traditional gas-guzzling counterparts. In 2023, global electric car sales hit 13.6 million units. This year, the industry is projected to achieve the sale of 17 million EVs, marking a substantial 27.1% surge. Amidst the cutthroat competition in the market, the escalating demand for EVs continues to offer ample room for growth to EV companies. Here, we present the three must-watch EV stocks for April.
Li Auto (LI)
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Li Auto (NASDAQ: LI) is a premium Chinese electric vehicle manufacturer focusing on high-quality electric SUVs. Despite a 13.76% year-to-date dip in stock price, the company garnered attention with a remarkable year-on-year sales volume surge of 53%, dispatching 28,984 units solely last month. This robust growth stems from the company’s successful business model addressing a specific niche in the EV sector for family-oriented EVs with extended range capabilities.
Analysts forecast a 75% compound earnings growth for Li Auto over the next five years, underpinned by a mere 0.03 debt-to-equity ratio and a substantial $10.2 billion cash reserve.
Bank of America envisions a 27% expansion in China’s electric vehicle market this year. Given Li Auto’s strategic position catering to the Chinese consumer base’s crucial demands, it’s poised to become a linchpin in many traders’ portfolios in the forthcoming months.
BYD (BYDDY)
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BYD (OTCMKTS: BYDDY) is a leading Chinese electric vehicle manufacturer, claiming the second-highest global EV market share, trailing only Tesla. In fiscal year 2023, BYD outpaced its major competitor Tesla, selling 526,409 units compared to Tesla’s 484,507 units.
BYD’s competitive edge in the EV industry lies in its vertical integration business model. The company stands as the primary producer of lithium-ion rechargeable batteries, boasting a comprehensive supply chain covering lithium mining, processing, battery manufacturing, and an in-house semiconductor unit.
This year, BYD has demonstrated impressive momentum, witnessing a 41% surge in total vehicle sales and a 28% rise in EV sales last month, contributing to an 88.1% overall sales hike year-over-year in Q1.
The breakout from a pennant pattern signals a potential upward trend, offering a lucrative opportunity for investors to delve in. With robust sales figures and promising growth prospects, BYDDY emerges as one of the premier EV stocks worthwhile investing in.
Tesla (TSLA)
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Tesla (NASDAQ: TSLA) stands as an American EV trailblazer, commanding the largest slice of the global EV market.
While the company faced a setback in total vehicle deliveries in Q1 2024, being bested by BYD, its Q4 revenue peaked at $25.17 billion, marking a 3.5% uptick year-over-year.
Looking ahead to 2024, Tesla harbors ambitious plans and exciting ventures for investors. Elon Musk’s announcement of the global rollout of the Model 3 and Model Y vehicles heralds a new chapter for Tesla. Additionally, the company’s forthcoming large-scale Texan venture is poised to bolster its production capacity.
Despite recent challenges, Tesla remains a dominant force in the industry, boasting substantial sales figures, global supremacy, and brand recognition. The company’s strategic foray into international markets such as India and Indonesia further underscores its enduring appeal for investors. Tesla continues to exhibit compelling reasons for investors to consider adding its stocks to their portfolio.
On the date of publication, Andy Kim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com