3 Promising EV Stocks to Get Ahead of the Game

Muslim Farooque

Wed, Jun 14, 2023, 4:40 AM 3 min read

Sociedad Quimica y Minera de Chile (SQM)

Source: Bjoern Wylezich/ShutterStock.com

Sociedad Quimica y Minera de Chile (NYSE:SQM) stands tall as Chile’s largest lithium producer, effectively reaping the rewards of the lithium demand surge over the past few years.

The firm’s positioning in Chile, a region housing the world’s most substantial proven lithium reserves, places it in an advantageous position. Lithium demand shows no sign of slowing down, so companies like SQM are unlikely to slow down soon.

Its fundamentals have been a peach, with it boasting double-digit growth across both lines over the past five years on average. Its year-over-year sales and EBITDA figures are up by more than 150%.

SQM recently unveiled a strategic agreement with Ford, aiming to secure a steady supply of high-quality lithium products, fueling the production of EVs.

This move strengthens SQM’s foothold and reaffirms its pivotal role in the sector’s future. It’s arguably one of the top dividend stocks out there, yielding over 15% with a five-year average growth of more than 49%.

Tesla (TSLA)

Tesla Motors (TSLA) now an SP500 company with a busy Pond Springs location in northwest Austin, TX

Source: Roschetzky Photography / Shutterstock.com

EV behemoth Tesla (NASDAQ:TSLA) proved its mettle once again during the earnings season, showcasing its stellar performance.

Despite a dip in the U.S. EV market share during the first quarter, It delivered an astonishing 422,875 vehicles delivered in the first quarter, leaving its previous figure of 310,000 vehicles in the dust.

Notwithstanding a margin squeeze caused by competitive pricing, the mounting delivery numbers underscore the EV giant’s market dominance. Diving deeper into the financials, Tesla’s balance sheet exudes strength and stability.

The company delivered a jaw-dropping $16 billion cash reserve in the first quarter, fueled by its massive operating cash flow figure of $2.5 billion.

Adding to the optimism is Tesla’s audacious goal of shipping 20 million vehicles annually by 2030. Hence, with such robust financial flexibility, Tesla can make significant investments without leaning on leverage.

ChargePoint (CHPT)

EV stocks: A close-up shot of a ChargePoint charging station.

Source: YuniqueB / Shutterstock.com

As the leading charging infrastructure provider, ChargePoint (NYSE:CHPT) has effectively established its position as a frontrunner in the North American market.

Investors have lauded the company for its premier asset-light business-to-business model, recently unveiling its robust first-quarter results illustrating a staggering 59% surge in its top line to $130 million compared to the same period last year.

Moreover, in a move highlighting its unwavering focus on profitability, the firm announced its intention to slash its EBITDA loss by nearly two-thirds by the fourth quarter of its current fiscal year, compared to the first quarter.

Also, if the company hits the midpoint of its second-quarter guidance range, we could witness another massive year-over-year sale increase of 41%. According to Tipranks analysts, the cherry on top could be a nearly 90% upside from current price levels.

On the date of publication, Muslim Farooque 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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.