7 EV Stocks to Buy on the Dip: February 2024
Discerning investors are always looking for the most promising EV stocks to buy in the electrifying stock market race. Amidst a backdrop of tumbling shares, with Tesla’s dramatic downturn setting the pace, the electric vehicle sector finds itself at a critical juncture. However, opportunities are charging up despite the sector’s recent setbacks, including missed sales targets and dwindling valuations.
Hence, for those eyeing the horizon, the current dip is a signal to invest strategically. The long-term potential of the EV market remains robust and now is the most opportune time to identify which EV stocks are poised to accelerate as the market gears up for a resurgence.
EV Stocks to Buy: Albemarle (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle (NYSE:ALB) stands at the forefront of the lithium revolution, which should benefit from the expected five-fold surge in global demand by 2030, mainly driven by the EV battery market. Despite recent headwinds reflected in subpar results, the company’s strategic move to triple its lithium conversion capacity to 600ktpa by 2027 showcases a bold commitment to seizing the EV market’s long-term upward ascent. This expansion, aligning with the anticipated resurgence in lithium prices, heralds a future of robust cash flows for its business.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Moreover, despite the headwinds, Albemarle’s resilience shines through its financial guidance, projecting a substantial operating cash flow of $600 to $800 million for 2023. With a commendable 29-year streak of dividend growth and an appealing yield of 1.40%, all while trading at an attractive 1.4 times forward sales, ALB demonstrates an incredible blend of growth potential and steadfast shareholder value.
Rivian (RIVN)
Source: Roschetzky Photography / Shutterstock.com
Rivian (NASDAQ:RIVN) is an EV trailblazer, navigating through a year brimming with promise, presenting a compelling narrative for prospective investors. Its ambitious stride towards establishing its second EV plant in Georgia speaks volumes about its dedication to scaling up and innovating in its niche. Amidst broader market apprehensions over EV demand, highlighted by Ford’s (NYSE:F) recent production recalibrations, Rivian stands out with its powerful R1T truck model continuing to attract consumer interest.
The backing of industry giants including Amazon (NASDAQ:AMZN) and AT&T (NYSE:T) further accentuates Rivian’s stature in the EV realm, reflecting a strong vote of confidence in its tech prowess and market potential. Currently trading at a modest 1.4 times book value, Rivian’s stock appears to be an undervalued gem in especially when considering Tipranks analysts’ projection of a significant 62% upside.
Solid Power (SLDP)
Source: T. Schneider / Shutterstock.com
Solid Power (NASDAQ:SLDP) ventures boldly into the high-stakes solid-state battery sector, positioning it as one of the spearheading businesses in the emerging sphere. The company’s strategic partnership with BMW (OTCMKTS:BMWYY), marked by the licensing of its cell design and manufacturing process, underscores a remarkable trajectory toward commercialization by 2026. This collaboration is further validated by the company’s milestone delivery of its first A-1 EV cells to BMW, a critical step in its automotive qualification that could dramatically redefine market dynamics upon successful validation testing.
Moreover, Solid Power’s deepened alliance with SK On further cements its strategic footprint, entrusting its cell designs and production processes to a partner with a massive global reach. Establishing a pilot cell production line for SK On in Korea fortifies this partnership and significantly enhances Solid Power’s capacity to meet the burgeoning demand for advanced battery solutions.
Li Auto (LI)
Source: Robert Way / Shutterstock.com
Li Auto (NASDAQ:LI) is a juggernaut in the Chinese electric vehicle landscape, which is positioned incredibly well to harness the burgeoning Asian market. The company’s ambitious strategy to expand its electric model lineup to 11 by 2025, from a current count of four, indicates a vigorous growth trajectory. Moreover, this expansion is complemented by developing an impressive 300 high-speed supercharging stations across China.
Furthermore, marked by the delivery of over 50,000 vehicles after last year, the company plans to double monthly deliveries to 100,000 in 2024, underscoring its operational excellence. With a track record of meeting targets and the impending launch of Li MEGA, set to add another chapter to its growth story, Li Auto emerges as a compelling player in the EV sector.
Polestar Automotive (PSNY)
Source: Jeppe Gustafsson / Shutterstock.com
Polestar Automotive (NASDAQ:PSNY), the UK’s rising star in the EV domain, radiates promise with two major catalysts likely to pay many dividends for its investors. The company’s strategic vision of achieving cash flow break-even by 2025, backed by its effective cost management efforts and operational leverage, lays a solid foundation for growth. The recent launch of Polestar 4, coupled with the eagerly anticipated debut of Polestar 5 this year, positions the firm to ramp up its delivery numbers meaningfully.
Polestar’s foray into the luxury SUV segment with the Polestar 3 is adding a new dimension to its portfolio. Additionally, this SUV, boasting a commendable 300-mile range and earning accolades for its performance and aesthetics, could be a game-changer for the firm. Moreover, its ambitious delivery target, scaling from 60,000 vehicles in 2023 to 160,000 by 2025, underscores a trajectory of accelerated long-term growth. Backed by a sizeable liquidity balance of $951.1 million, Polestar’s strategic moves, mainstream model launches, and positive market reception herald a new era of luxury and innovation in its niche.
Lithium Americas (LAC)
Source: Wirestock Creators / Shutterstock.com
Lithium Americas (NYSE:LAC) emerges as a deeply undervalued gem in the lithium sector, with its stock plummeting by double-digit margins last year, an overreaction to the fleeting dim outlook for lithium. The market is overlooking the colossal intrinsic value of its much-talked-about Thacker Pass project, which boasts an after-tax net present value of $5.7 billion, dwarfing its current market valuation of $676.8 million. This disparity sets the stage for explosive long-term growth, with prospects of multi-bagger returns as the lithium market rebounds.
Bolstered by General Motors‘ (NYSE:GM) huge $650 million investment and a decade-long offtake agreement for phase one production, LAC boasts top-line certainty and a remarkable 40-year mine life. With Thacker Pass as the only fully permitted lithium project in the U.S. and analysts projecting a striking 166.8% upside potential for LAC stock, the firm is primed for a meteoric ascent.
Panasonic Holdings (PCRFY)
Source: testing/Shutterstock.com
Panasonic Holdings (OTCMKTS:PCRFY) is a promising prospect in the realm of EV battery innovation. Its ambitious blueprint to substantially increase EV battery capacity to a staggering 200GWh by the financial year 2031 heralds a powerful growth period, quadrupling its current capacity and signaling a massive leap in sales generation. This ambitious growth is matched by a commitment to EBITDA margin enhancement, painting a picture of a company growing in scale and improving in efficiency.
At the heart of Panasonic’s strategy lies a relentless pursuit of innovation, mainly in developing batteries with superior energy density. It aims to achieve an impressive 1,000 Wh/L by 2031, a 25% bump from present levels, setting the stage for groundbreaking advancements in battery technology. Additionally, its compelling forward price-to-sales ratio of 0.38 times and a solid dividend yield of 2.34% add to its allure and the ability to deliver substantial value to its stakeholders.
On the date of publication, Muslim 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The post 7 EV Stocks to Buy on the Dip: February 2024 appeared first on InvestorPlace.
