The Top 3 EV Stocks to Buy in April 2024

Stocks to buy

The electric vehicle (EV) has been continuously growing as we transition into sustainable energy and resources. Due to increased environmental awareness and consideration, consumers and governments are favoring EVs over traditional gas-fueled cars. As a result, this represents a high-growth potential market for EV producers. In 2023, the global sales for EVs surpassed 13.6 million, with 16% of all new vehicles sold being electric. By 2030, we anticipate seeing more than 125 million EVs on the road globally. Below are the three EV stocks that I believe investors should buy this month.

Rivian (RIVN)

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Rivian (NASDAQ:RIVN) is an American electric vehicle maker that specializes in the production of premium electric sport utility vehicles and pickup trucks. After the company went public in November 2021, Rivian’s stock has been facing a sharp decline in its price, falling from its IPO of $129.95 to the current price at $8.63. While the steady decline in stock price may alarm some investors, Rivian still presents a good long-term investment opportunity in the growing EV market. 

Unlike its competitors, Rivian is still one of the very few companies that specializes in EV pickup trucks. Rivian’s new upcoming models such as R2, R3, and R3X, will allow the company to expand its target market as these models offer more affordable options for consumers.

Rivian ended 2023 with around $10.4 billion in cash reserves, which is a significantly larger sum than what most of the EV start-ups hold. These reserves will allow Rivian to launch its newer models and help the company get through its restructuring phase. While Rivian still has a long way to go before turning profitable, the increasing sales and the introduction of more affordable models make Rivian a favorable long-term investment. 

Li Auto (LI)

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Li Auto (NASDAQ:LI) is a Chinese automaker that produces luxury electric SUVs. Their unique approach to electric vehicles is known as the extended-range electric vehicles (EREVs). They integrate a small gasoline engine to charge the battery, offering a solution to “range anxiety” commonly associated with pure electric cars. It sets Li Auto apart from its competitors. 

The most positive aspect of Li Auto is its continued profitability. Li Auto has been profitable for the past three quarters — something a lot of its competitors are not able to do. On top of the impressive profitability, Li Auto had solid deliveries. In FY 2023, Li Auto recorded 376,030 total deliveries, a 182.2% increase from 133,246 vehicles in 2022. Furthermore, Li Auto’s deliveries were increasing for the last six consecutive quarters before the company cut its Q1 delivery guidance. This cut should not concern investors as it seems to be a temporary effort to regain market share. Investors should continue investing in Li Auto. 

XPeng (XPEV)

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XPeng (NYSE:XPEV) is a Chinese EV manufacturing company headquartered in Guangzhou with multiple main offices located in major cities overseas. 

With recent first-quarter figures, XPeng announced that the company reached cumulative deliveries of new vehicles totaling 22,000 units, in line with the company’s guidance. This figure also marks a solid 19.7% year-over-year increase. 

In 2023, XPeng delivered 750 of its vehicles to Israel. That was the largest single batch of exports for the year. Continuing on this trend, XPeng has been trying to expand beyond its domestic Chinese market. Specifically, the Chinese EV manufacturer has been expanding in Europe, the second-largest international EV market. The company has already started sales in Norway, Netherlands, Sweden and Denmark. It plans to start its G9 SUV and P7 sedan sales in Germany in just a few weeks. By the end of the year, XPeng is optimistic about joining markets in Italy, France and the U.K. As XPeng continues its reach and sales internationally, investors should start looking into the stock. 

On the date of publication, Andy Kim 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.

Andy is a self-taught investor who is interested in ESG and socially responsible investing. He has managed the portfolio of a small investment fund and started his own research firm. Through his freelance writing on InvestorPlace, he hopes to find and share promising investments in companies with the goal of bettering the world.

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