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We recently compiled a list of the 12 Cheap EV Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where ON Semiconductor Corporation (NASDAQ:ON) stands against the other cheap EV stocks.
Ownership of EVs is rising in the US. On March 16, CNBC reported that currently there are nearly 6 million battery EVs and plug-in hybrids on the roads. While this represents only a small portion of the overall vehicle market, it marks significant progress and automobile manufacturers remain invested in the transition away from gasoline. It is worth noting that in 2024 sales of traditional internal combustion engine cars fell below 80% for the first time in modern history.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 8 Fastest Growing AI Stocks To Buy Right Now.
The steady growth in EV sales suggests that consumer concerns about range anxiety are diminishing. However, this fear of running out of battery power remains a challenge for the EV market. The EV industry is working to address this by installing enough chargers in public places and expanding public charging infrastructure to drive wide-scale EV adoption. Despite many efforts, charging companies are finding it difficult to maintain growth because of political uncertainties.
The Trump administration has proposed stripping away federal incentives for EVs and instead prioritizing oil and gas policies. This creates a challenging environment for EV manufacturers and charging companies. Moreover, tariffs on essential steel and aluminum are further challenging automakers and their operations.
Despite current challenges, many believe that the EV sector is expected to grow significantly as it aligns with global sustainability goals and technological advancements. Additionally, innovations in battery technology and charging infrastructure continue to make EVs more affordable and feasible.
Methodology
To compile our list of the 12 cheap EV stocks to buy according to hedge funds, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. To find cheap EV stocks, we narrowed down our selection by looking for stocks trading at under 20 times their forward earnings as of March 17, 2025. Next, we focused on the top 12 cheap EV stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 12 cheap EV stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.