11 Hot EV Stocks To Buy Now
In this article, we discuss the 11 hot EV stocks to buy now. If you want to read about some more EV stocks that are active in the market, go directly to 5 Hot EV Stocks To Buy Now.
The electric vehicle (EV) industry continues to be a major growth sector globally, with companies and governments investing billions in the electrification of the automotive industry. Anticipated to be a pivotal year, 2024 is set to bring significant developments to the EV industry, reshaping consumer and commercial mobility. According to Euromonitor's Mobility forecasts, electric vehicles are projected to represent 25% of all new passenger car registrations in 2024, translating to over 17 million units sold worldwide.
Moreover, analysts like Schmidt Automotive Research (SAR), who previously indicated a plateau in 2024, now foresee a strong resurgence in sales from 2025 to 2030. Despite the acknowledged slowdown, UBS, an investment bank, maintains a positive outlook for the European electric vehicle (EV) market through 2030. Schmidt Automotive suggests that Europeans may experience some relief, as the expected influx of highly competitive EVs from China could be delayed due to a shortage of shipping capacity. Nonetheless, the global electric vehicle market continues to demonstrate robust performance, exemplified by China's record monthly sales in September and October, even after the cessation of subsidies. Earlier in September of this year, the leading global EV market recorded a year-to-date increase of 29%, while the global EV market as a whole exhibited a 34% growth during the same period.
In light of this, the European Union is extending a €3 billion subsidy to battery manufacturers in a bid to accelerate the growth of the electric vehicle industry, aiming to close the gap with China. This proposal from the European Commission, revealed on December 6, is part of a potential agreement with the UK to delay the implementation of tariffs slated for electric vehicles traded between the two entities from January 1. The €3 billion funding will be drawn from the EU's Innovation Fund, funded by proceeds from carbon emission permit sales, and will be accessible until the conclusion of 2026.
Maroš Šefčovič, commission vice-president, made the following remarks:
“By providing legal certainty on the applicable rules and unprecedented financial support to European producers of sustainable batteries, we will bolster the competitive edge of our industry, with a strong value chain for batteries and electric vehicles.”
Swedish battery maker Northvolt also welcomed the announcement, stating that:
“If used correctly, this mechanism could further fuel the race towards creating more sustainable and circular batteries, giving Europe a competitive edge while also moving towards realizing the goals of the Paris agreement.”
Anticipating the positive prospects driven by these aforementioned developments, investors are eyeing promising opportunities in the industry. With that in mind, let’s take a look at some hot EV stocks to buy as we move along the last days of 2023, with some notable names including the likes of General Motors Company (NYSE:GM), Tesla, Inc. (NASDAQ:TSLA), and Ford Motor Company (NYSE:F).
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Our Methodology
In this article, we utilized stock screeners to pinpoint stocks with an average 3-month volume exceeding 5 million as of December 7. The selected stocks are either directly or indirectly linked to the electric vehicle market. Additionally, we provided the number of hedge funds invested in each stock, offering insights into the EV stocks preferred by hedge funds.
11. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 13
Avg Volume: 10.55 million
XPeng Inc. (NYSE:XPEV) is a prominent Chinese Smart EV company dedicated to designing, developing, manufacturing, and marketing Smart EVs tailored to the tech-savvy middle-class consumer base. To enhance customer mobility, XPeng Inc. (NYSE:XPEV) internally develops a comprehensive suite of technology, including advanced driver-assistance systems, in-car intelligent operating systems, and fundamental vehicle systems like powertrain and electrical/electronic architecture. XPENG is headquartered in Guangzhou, China, with major offices located in Beijing, Shanghai, Silicon Valley, San Diego, and Amsterdam.
XPeng Inc. (NYSE:XPEV) recently confirmed the finalization of Volkswagen's significant €652 million investment in the company, resulting in a 4.99% stake. Alongside this substantial investment, Volkswagen has secured an observer seat on the board of directors at XPeng Inc. (NYSE:XPEV). The collaboration extends beyond financial aspects, with both companies aiming to jointly create two electric vehicles tailored for China's mid-size car market by the year 2026.
Of the 910 hedge funds tracked by Insider Monkey, 13 hedge funds reported owning stakes in XPeng Inc. (NYSE:XPEV). The biggest stakeholder of XPeng Inc. (NYSE:XPEV) was D E Shaw which owns a $83.78 million stake in the company.
Much like General Motors Company (NYSE:GM), Tesla, Inc. (NASDAQ:TSLA), and Ford Motor Company (NYSE:F), XPeng Inc. (NYSE:XPEV) is a hot EV stock that investors are eyeing.
10. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 18
Avg Volume: 27.7 million
Lucid Group, Inc. (NASDAQ:LCID), a technology and automotive company, is actively involved in the electric vehicle technologies business. The company specializes in the design, engineering, and construction of electric vehicles, EV powertrains, and battery systems.
In September of this year, Lucid Group, Inc. (NASDAQ:LCID) inaugurated its first automobile manufacturing facility in Saudi Arabia, marking a significant milestone. This facility, recognized as Lucid Group, Inc. (NASDAQ:LCID)’s second Advanced Manufacturing Plant (AMP-2) and its initial international plant, is designed to manufacture Lucid’s innovative electric vehicles for the Saudi Arabian market and facilitate exports to other global markets.
As of the end of the third quarter of 2023, 18 hedge funds out of the 910 hedge funds tracked by Insider Monkey reported owning stakes in Lucid Group, Inc. (NASDAQ:LCID).
9. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 18
Avg Volume: 43.6 million
NIO Inc. (NYSE:NIO), a Chinese multinational automotive company based in Shanghai, specializes in the design and development of electric vehicles. The company is also known for creating battery-swapping stations as an alternative to traditional charging stations for its vehicles.
On December 5, NIO Inc. (NYSE:NIO) finalized "definitive agreements" to acquire equipment and assets from two "advanced manufacturing" bases owned by the state-owned automaker Anhui Jianghuai Automobile Group Corp. Ltd. The transaction, disclosed in conjunction with the third-quarter results on the Hong Kong Stock Exchange, amounts to approximately 3.16 billion yuan ($443 million), excluding tax.
Out of 910 hedge funds profiled by Insider Monkey at the end of Q3, 18 held stakes in NIO Inc. (NYSE:NIO). The largest stakeholder was George Soros’ Soros Fund Management which owned 115.3 million stakes of NIO Inc. (NYSE:NIO) that were valued at $110.1 million.
8. QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 20
Avg Volume: 5.44 million
QuantumScape Corporation (NYSE:QS), positioned as a developmental stage company, is dedicated to advancing solid-state lithium-metal batteries designed for electric vehicles and diverse applications. This categorizes it as a stock suitable for long-term investment, given the potential for share value growth in the event of a substantial breakthrough.
QuantumScape Corporation (NYSE:QS) has demonstrated promising advancements in cell tests. As outlined in its recent quarterly report, the leading prototype A0 cell, developed in collaboration with Volkswagen, has not only surpassed its own performance benchmarks but has also outperformed any other automotive battery cell. This achievement exceeds QuantumScape’s targets for commercialization, which were set at 800 cycles and 80% energy retention. The financial outlook is robust as well, with the Q3 report detailing $1.1 billion in liquidity following QuantumScape Corporation (NYSE:QS)’s successful raising of $300 million in gross proceeds during the quarter.
According to Insider Monkey’s database for the third quarter of 2023, 20 hedge funds exhibited bullish sentiment on QuantumScape Corporation (NASDAQ:QS), compared to 17 funds in the previous quarter.
7. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 27
Avg Volume: 7.01 million
Stellantis N.V. (NYSE:STLA) is a consumer cyclical company engaged in the design, manufacturing, distribution, and sale of automobiles and light commercial vehicles. Additionally, the company produces engines, transmission systems, metallurgical products, and offers mobility services. Stellantis N.V. (NYSE:STLA) is known for providing luxury and premium passenger vehicles.
On December 7, Stellantis N.V. (NYSE:STLA) announced its plan to incorporate swappable battery technology into its electric vehicle rental fleet, aiming to address concerns related to range anxiety and prolonged charge times. To this end, the company disclosed a partnership with Ample, a San Francisco-based developer specializing in swappable electric vehicle (EV) batteries.
Insider Monkey dug through 910 hedge funds for their shareholdings during this year’s September quarter to discover that 27 had bought and owned Stellantis N.V. (NYSE:STLA)’s shares. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the firm’s biggest shareholder among these since it owns $855 million worth of shares.
6. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 28
Avg Volume: 5.23 million
Li Auto Inc. (NASDAQ:LI) is a Chinese firm specializing in the design and production of new energy passenger vehicles. The company's Li ONE brand manages the sale of its vehicles along with providing associated products and services, including charging stations, automotive internet connectivity services, and extended lifetime warranties.
Li Auto Inc. (NASDAQ:LI) introduced its inaugural multipurpose vehicle (MPV) in November of 2023, aiming to broaden its customer reach within the family segment of the world's largest car market. The Li Mega MPV, featuring seven seats and anticipated to be priced below 600,000 yuan (US$82,819), marks the Beijing-based automaker's first venture into full-electric models following the success of its four extended-range hybrid sport-utility vehicle (SUV) models.
Out of 910 hedge funds profiled by Insider Monkey at the end of Q3, 28 had stakes in Li Auto Inc. (NASDAQ:LI). The largest stakeholder was Israel Englander’s Millennium Management which owned about 100.8 million shares of the firm that were valued at $139.4 million.
In addition to General Motors Company (NYSE:GM), Tesla, Inc. (NASDAQ:TSLA), and Ford Motor Company (NYSE:F), Li Auto Inc. (NASDAQ:LI) is a hot EV stock that is trending in the market.
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Disclosure. None. 11 Hot EV Stocks To Buy Now is originally published on Insider Monkey.
