Despite ongoing economic challenges, recent reports from various electric vehicle (EV) manufacturers have revealed resilient EV sales. Enhanced by government incentives and manufacturer price reductions, EV sales in the U.S. surged by 50% to 557,330 units during H1 2023, constituting 7.2% of total vehicle sales.
However, this growth pace is slower than the 71% increase observed in the previous year’s first half, partly attributed to rising gas prices and new EV model introductions. According to Cox Automotive data, dealer inventory of EVs also notably rose by the end of June.
Electric vehicle stocks hold significant long-term growth potential as the automotive industry experiences a transformative shift toward electrification. Recent years have demonstrated impressive returns from EV-related stocks. These top electric vehicle stocks are poised to maintain this upward trajectory.
ChargePoint (NYSE:CHPT), a special-purpose acquisition company, has shown gradual growth potential. While currently unprofitable, its innovative focus on alternative current Level 2 chargers for residential and commercial use sets it apart. The global presence of these chargers positions ChargePoint well as EVs continue to gain popularity. Despite negative cash flow, the company has expanded its charging network significantly, boasting 48,000 charging points worldwide, giving it a competitive edge in the EV charging sector.
Despite competition from Tesla (NASDAQ:TSLA), ChargePoint dominates 65% of the market. Its revenue growth and positive EPS position it as an attractive EV charging stock with considerable growth potential. Operating widely in North America and 16 European countries, ChargePoint has a substantial addressable market for strong future revenue expansion.
Byd Co. (BYDDF)
In July, BYD Co. (OTCMKTS:BYDDF) traded at $32.85, rising to $35.18, and touching a peak of $36.27. Known for manufacturing EV batteries, BYD is a prominent supplier in China. The company is rapidly expanding its production capacity and is poised to benefit from China’s EV market growth.
The Denza N7 SUV, a potential Tesla Model Y rival, was recently launched. Strong growth continues, with June sales at 253,046 EVs, a 5.3% monthly increase, and H1 2023 sales reaching 1.25 million units, a remarkable 95% year-over-year growth.
BYD, a China EV leader, aims for global dominance in 2023. It’s now the world’s second-largest EV battery supplier, surpassing LG. Strong finances, 24% potential stock upside, and Blade Batteries favored by EV makers amplify BYD’s prowess.
Li Auto (LI)
China’s Li Auto (NASDAQ:LI) is set to reveal Q2 2023 financials on Aug. 8. Should you wait? Not necessarily. June saw a 150.1% year-over-year rise in EV deliveries, and Q2 soared 201.6% year-over-year. While positive results are expected, delaying LI stock entry risks missing rapid gains. Favorable policy shifts in China could propel Li Auto and the nation’s economy, making an early investment opportune.
Undoubtedly, recent events paint Li Auto in a positive light. I think that LI stock is likely to continue to react positively to any sort of bullish momentum from here, given how beaten-down the stock has been. Accordingly, while the company’s upcoming quarterly report has yet to be released, this is a company with a positive outlook overall. Thus, I’m of the view that as long as this market momentum remains in place, LI stock could soon breach $50, swiftly reaching $60 and $75.
On the date of publication, Chris MacDonald 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 Publishing Guidelines.