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EV battery maker QuantumScape (QS) and General Motors (GM) are advancing 11% and 4%, respectively, after a research firm estimated on Friday that U.S. EV sales had surged 12% last quarter versus the same period a year earlier.
A brand new electric vehicle charging at a charging station with a city skyline in the background. Meanwhile, GM noted on Friday that its EV sales had climbed roughly 100% in Q4 versus Q2. Cox Automotive's Estimates Cox, which extensively researches the U.S. automotive sector, estimated that U.S. EV unit sales had jumped 12% in Q4 compared to Q4 of 2023. That brought the total EV sales for the year up to a record 1.3 million, Cox reported. What's more, the market share of EVs in 2024 is estimated to have risen to 8% from 7.6% in 2023. Cox attributed the large increase in the demand for EVs last quarter to the desire of many consumers to purchase such a vehicle before Washington Republicans eliminate tax credits that were placed on them during the Biden administration. Specifically, President-elect Donald Trump's transition team has reportedly stated that his administration would seek to eliminate the current $7,500 EV tax credit. Since Cox attributed last quarter's jump in EV demand to worries about Trump's policies, the firm does not anticipate that the trend will continue in 2025. GM's Q4 EV Sales and Overall U.S. Performance GM sold nearly 44,000 EVs in Q4, up from 21,930 in Q2, the company stated. Further, its share of the overall U.S. EV market jumped to about 12% in Q4 from 7.1% in Q2. Overall, GM's unit sales soared 21% year-over-year in Q4. While we acknowledge the potential of QS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.