Given the secular increase in the acceptance of worldwide electric vehicle sales, EV stocks remain a major concern for the investing world. Estimates for 2024 show that EV sales might reach over 17 million units—more than 20% of all cars sold worldwide. Under current legal circumstances, electric vehicles are expected to make up around 55% of all light-duty vehicle sales by 2035 and 40% of all sales by 2030.
With China leading the largest EV market worldwide, the government has instituted notable policies like production incentives and subsidies, making it an ideal region for EV stocks. About half of all EVs sold worldwide in 2023 came from Chinese manufacturers.
China currently leads in EV growth, with over 60% of all EV sales globally in 2023. By 2028, China’s electric car market is predicted to rise to $398 billion from $319 billion now.
We will, therefore, investigate three quality, buy-rated EV stocks from China with double-digit upsides. Furthermore, these Chinese EV companies have lately shown good monthly EV delivery figures, thus supporting the positive thesis.
Li Auto (LI)
Li Auto (NASDAQ:LI) supplied 47,774 automobiles in June 2024, a 46.7% year-over-year increase. This figure increased second-quarter sales to 108,581 cars, which is 25.5% more than the same time last year. As of June, Li Auto has delivered 822,345 automobiles, the most among China’s new energy automakers, driven by Li L6’s popularity.
Moreover, in April, the five-seat Li L6 premium family SUV was unveiled. It comes in modus and max-trimmed form. With better self-driving capabilities and a range-extending system allowing it to go 1,390 kilometers, the vehicle retails for over $34,500.
Li L7, Li Auto’s all-wheel-drive range extension technology, is already an ideal candidate in the luxury family SUV market sector; this five-seat luxury family SUV has modern safety technology, a panoramic sunroof, and a high-end entertainment system.
To include the Drive Thor platform in the upcoming models, Li Auto has also worked with Nvidia (NASDAQ:NVDA), thereby enhancing the autonomous driving and artificial intelligence capabilities of the vehicles.
Finally, Li Auto, the first large Chinese EV manufacturer to make a profit, is down double digits this year mainly due to delaying of its all-electric SUV model delivery until 2025. But it creates a pleasing point of entry for the stock, with possible upside of 81%.
XPeng (XPEV)
XPeng (NYSE:XPEV) delivered 10,668 automobiles in June, up 24% from the year before, including the fantastic XPENG X9 release, which boosted sales.
For the first half of the year, XPeng delivered 52,028 Smart EVs, which is 26% more than the same time last year. Over the next three years, XPeng will also be extending its product range with around thirty new and facelifted models.
XPeng expects to deploy its P7+ sedan in the fourth quarter of 2024. Previously known as F57, this model was part of XPeng’s ambition to expand its market share. In July, XPeng intends to unveil the all-electric hatchback coupe Mona M03.
In addition, XPeng’s AI Tianji System XOS 5.1.0 and AI huge language model XBrain advance AI and self-driving automobiles. XPeng intends to enable L4-level autonomous driving by 2025, making it simpler for automobiles to drive themselves.
Plus, XPeng and Volkswagen (OTCMKTS:VWAGY) are collaborating to bring Volkswagen’s MEB technology to upcoming electric cars. This cooperation promises China a cutting-edge digital EV platform. Volkswagen should start production within 24 months.
Internationally, XPeng launched the G6 coupe SUV in Singapore to expand globally. Soon launching in Malaysia as well, the XPeng G6 marks XPeng’s arrival into this market.
Despite worldwide growth and strong delivery statistics, Chinese electric car company shares are down over 42%; a $11.5 price target suggests 43% upside, making it one of the best EV stocks around.
Nio (NIO)
Nio (NYSE:NIO) shipped 21,209 electric cars in June 2024, making it the second month in a row that the company supplied more than 20,000 vehicles; Q2 2024 saw 57,373 automobiles delivered, 143% higher than the previous year.
Looking ahead, Nio’s low-cost electric SUV, priced at $30,465, will first show up in China in September 2024. With an eye on rival Tesla’s vehicle Y, the Onvo L60 should increase Nio’s sales even further.
Additionally, Nio sub-brand Alps is starting trial production on its debut model, DOM, this year. All-electric SUV DOM can switch batteries and target a cheaper market. Larger-scale production is expected to start later this year, helping Nio gain further market share.
Nio will debut 2024 ET7 interior improvements at the Beijing Auto Show. New displays, AI technology for vehicle performance and stability, reclining options, and more computing capacity are among the improvements.
Furthermore, Nio will release the second-generation phone on July 27. AI-powered voice assistant NOMI GPT will boost Nio vehicle user engagement on this phone. This integration aims to improve mobile-car integration.
Despite strong delivery numbers and new product releases, Nio stock is down 48% this year, meaning upside is 51% based on a target price of $6.5, cementing its place among undervalued quality EV stocks.
On the date of publication, Faizan 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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.