Last year, growth stocks and EV stocks faced challenges. But 2023 has brought a strong comeback, driven by government support and rising fuel costs. Amid this, market differentiation between EV sector leaders and laggards has become evident, with some stocks surging while others decline.
Oftentimes, investors have EV exposure through ETFs. But diversification in individual stocks across the industry, including manufacturers, lithium producers, and infrastructure players, offers strong growth potential and protection. Thus, this positions investors for long-term success.
Let’s examine three EV stocks for long-term investors to consider right now!
Li Auto (LI)
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Li Auto’s (NASDAQ:LI) remains a prominent Chinese EV manufacturer. It specializes in smart SUVs with extended-range tech, like the Li L7, a direct Tesla Model Y competitor.
Obviously, LI’s fundamentals are robust, with a remarkable 202% surge in Q2 deliveries, totaling 86,533 vehicles. This feat led to a turnaround from losses to net gains and rising margins. And with $10.2 billion in liquidity, the company is poised for further expansion in China and beyond. Hence, Q3 delivery growth is projected at 277% to 288%, exceeding 100,000 vehicles.
In other news, on September 14th, numerous automotive bloggers shared official Li Auto images and videos of the Li Mega EV. They showcased features like the Qilin battery for quick charging and extended range. Further, this exemplifies that the company offers unique extended-range tech and remains attractively valued.
Byd Co. (BYDDF)
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Moreover, the company partnered with Itochu in 2020 to recycle old EV batteries into energy storage systems, addressing China’s growing battery waste.
Notably, BYD is the leading EV brand in China and a major player in EV battery production, surpassing LG Energy Solutions globally. Additionally, the company announced a $1 billion investment in India for EV and battery production. Its strong sales and Goldman Sachs‘ “buy” rating underscore its momentum.
For those looking to bet on Chinese EV growth, play this space.
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Another top Chinese EV player, Nio (NYSE:NIO) remains a stock investors should follow closely.
First, the company delivered over 10,000 ES6 SUVs in July, hinting at potential sales growth ahead. Nio’s daily production rate of 300+ ES6 units and a double-shift manufacturing schedule suggest readiness for increased sales, a positive sign for the latter half of 2023.
Despite a year-to-date (YTD) return of 14.23%, Nio faced challenges in Q2 2023 with a 15% revenue drop and a 6.12 billion Chinese Yuan loss. However, Nio’s ability to exceed delivery of 19,329 vehicles in August amid a market shift from SUVs to sedans is commendable. They achieved this despite growing competition and price pressures in China’s EV market. Therefore, investors take note.
On the date of publication, Chris MacDonald 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
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.