New EV Frontiers: 3 Stocks Ready to Drive Past Tesla in 2024

Chris MacDonald

Wed, Jan 10, 2024, 5:56 AM 3 min read

The world witnessed a surge in electric vehicle (EV) adoption, surpassing 1 million sales in 2023. However, the year concluded with a slowdown attributed to macroeconomic factors. Despite this, certain EV stocks demonstrated resilience, offering long-term growth potential. As EVs become mainstream, these three stocks stand out for consideration in 2024.

The EV industry, a thriving investment hub, showcases promising alternatives to Tesla (NASDAQ:TSLA). Amidst increasing competition, these choices not only emphasize innovation but also present significant potential for an upside, aligning them as strong contenders in the EV realm.

Additionally, anticipated rate cuts in 2024 further amplify the growth prospects of EV-related growth stocks in the long run. Here are three EV stocks I think investors should have in their portfolios right now.

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Byd Co. (BYDDF)

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

Source: J. Lekavicius / Shutterstock.com

BYD Co. (OTCMKTS:BYDDF), a robust Tesla contender, nearly outpaced Tesla in deliveries and stands as the world’s second-largest battery manufacturer. Beyond that, BYD’s global footprint, exporting cars worldwide, positions it advantageously. The EV maker’s broader EV product range, including plug-in hybrid cars, contributes to a broader market share.

BYDDF showcases a robust 11.26% Return on Invested Capital and a 23.7% Return on Equity, signaling competitive advantage. Despite a recent 15% market dip, a favorable 0.11x price-to-earnings-growth ratio suggests potential recovery, making BYDDF appealing.

As a potent rival to Tesla, BYD delivered 2,079,638 vehicles year-to-date, showing a 43% year-over-year increase. As the world’s second-largest battery maker, BYD stands out by prioritizing affordability alongside quality, providing budget-friendly alternatives to Tesla. In 2023, BYD sold 3.02 million vehicles, a 61.9% year-over-year increase, highlighting its global appeal in the expanding EV market.

Lithium Americas (LAC)

smartphone with logo of Canadian company Lithium Americas Corp on screen

Source: Wirestock Creators / Shutterstock.com

Lithium Americas (NYSE:LAC) is positioned to benefit from the evolving mobility landscape driven by electric vehicles. Despite recent challenges like a significant drop in lithium prices and EV sales, the industry’s future remains promising, with expectations for a rebound in lithium prices by 2024 or 2025.

Despite a stock decline, Lithium Americas shows positive business developments, with a “fully permitted” project, financial backing from General Motors (NYSE:GM), a 10-year off-take agreement, and the Thacker Pass project boasting a 40-year mine life and substantial value, indicating future stock potential.

Aligned with Lithium Americas’ future production endeavors, the company holds rights to Thacker Pass, the largest lithium deposit in the Western hemisphere. Construction will begin in June, and lithium mining is projected for 2026, offering substantial return potential.

Li Auto (LI)

Li Auto (Li Xiang) brand logo and electric car in store. A Chinese EV(electric vehicle) company

Source: Robert Way / Shutterstock.com

Known for electric SUVs and the unique blend of combustion and electric capabilities, Li Auto (NASDAQ:LI) is gaining attention as it gears up to launch its first electric car, the MEGA MPV, in March. With over 30,000 pre-orders reported, the stock holds promise amid recent Chinese market sell-offs prompted by economic uncertainties and real estate concerns.

Li Auto achieved remarkable EV delivery growth in November, with a 172.9% year-over-year increase to 41,030 units. Anticipating even more impressive figures in the coming year, the automaker is set to launch its flagship Li MEGA multi-purpose vehicle on March 1, marking a significant milestone as their first fully electric car. In December, the company achieved a milestone with 50,353 vehicle deliveries, marking its ninth consecutive month of record-breaking sales. This growth trajectory solidifies Li Auto’s position as a robust player in the EV market, making it appealing to long-term 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.