3 EV Stocks With Upcoming Catalysts You Can’t Ignore

Chris MacDonald

Thu, Jan 11, 2024, 5:58 PM 3 min read

Li Auto (LI)

Li Auto electric car in store. Li Auto Also known as Li Xiang, is a Chinese electric vehicle (EV) company

Source: Robert Way / Shutterstock.com

Li Auto (NASDAQ:LI) maintains its impressive growth trajectory, solidifying its position as a formidable player. In fact, November saw a remarkable surge, with deliveries reaching 41,030 vehicles, marking a 172.9% year-over-year (YOY) increase. Additionally, Q3 revenue soared to $4.61 billion, reflecting a remarkable 271% YOY growth.

Li Auto, already a compelling investment, adds another reason to buy. The imminent mass production of its first fully electric car, the MEGA MPV, will start in February. Therefore, this shift from hybrid-style vehicles indicates Li Auto’s strategic move. Previewed at the 21st Guangzhou International Automobile Exhibition, the MEGA MPV garnered over 10,000 orders within two hours of reservations opening.

Showroom models were available in January 2024. Also, Li Auto claims the MEGA MPV can cover 500 kilometers (310 miles) on a 12-minute charge. Therefore, anticipate exciting developments in Li Auto’s growth story with MEGA deliveries commencing in February.

Nio (NIO)

NIO ES6 electric SUV semi-autonomous car on display near Chinese automobile manufacturer NIO software development office in Silicon Valley. Chinese EV companies like NIO are in the news.

Source: Michael Vi / Shutterstock.com

Despite a challenging 2023, Chinese EV manufacturer Nio (NYSE:NIO) received a boost. A $2.2 billion investment from CYVN Holdings sent its stock up 12%. CYVN now holds 20% of Nio, resolving concerns about the company’s capital needs for future growth.

NIO showcased robust performance in December 2023, delivering 18,012 vehicles, a 13.9% YOY increase. Also, the fourth quarter saw 50,045 deliveries, a 25% jump from the previous year. Investors might find potential long-term gains in NIO’s dynamic EV market presence.

While skeptics highlight NIO’s cash burn and potential shareholder dilution, others see promise in the ET9 luxury vehicle. With cutting-edge features and battery-swapping technology, the ET9 aims to challenge Tesla in the high-end market. The company may potentially reshape perceptions and offer investors a unique opportunity.

BYD Co. (BYDDF)

A close-up view of the power supply plugged into a vehicle from BYD Company (BYDDY).

Source: J. Lekavicius / Shutterstock.com

Founded in 1995 by Wang Chuanfu, BYD Co. (OTCMKTS:BYDDF) is China’s leading EV producer.

Unlike Tesla, the company exports EVs globally, specializing in electric taxis, buses, and hybrids. BYD’s major overseas markets include Israel and Thailand, where it dominates EV sales with popular models like Qin and Song.

In a pivotal development, BYDDF achieved a historic milestone, surpassing Nissan in monthly sales for the first time. Fueled by the strong adoption of EVs in China, BYDDF recorded an impressive 301,833 unit sales in October. The ongoing growth trend in China’s EV market and the anticipated 4% expansion of the country’s economy position BYDDF for sustained sales momentum.

With a robust return on invested capital at 11.26%, BYD Co. demonstrates a competitive advantage. Specifically, it requires minimal capital for business monetization. Additionally, a noteworthy return on equity at 23.7% reflects the considerable value delivered to equity investors.

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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.