Best EV Stocks To Invest In for October 2024

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Electric vehicle registrations have surged in recent years, reaching nearly 14 million globally in 2023, according to the International Energy Agency. About 18% of all vehicles sold last year were electric, and battery-electric cars accounted for 70% of EV stock.

Growth in demand has slowed for the time being in the U.S., but it’s strong in Europe and China. Companies involved directly or indirectly in this market stand to benefit as it matures and EVs eventually replace gas-powered vehicles.

What Are Good EV Companies To Invest In?

A look at sales totals on EVs in the U.S., with Tesla dominating the list, can point you in the right direction. But there are many other EV stocks also showing promise right now, encompassing both domestic and international EV manufacturers as well as conventional auto manufacturers and companies investing in EV infrastructure.

1. Tesla (TSLA)

• Share price as of Oct. 2: $249.02
• 52-week range: $138.80 – $271.00
• Price/sales ratio: 9.12
• Price/earnings ratio: 69.95

Despite growing competition — especially from Chinese EV companies, according to CEO Elon Musk — Tesla is the undisputed industry leader when it comes to electric vehicle sales in the U.S. in recent years, although its market share slipped below 50%, to 49.7%, for the first time ever in the second quarter of 2024, according to Cox Automotive.

That’s not to say Tesla doesn’t have some major obstacles, especially with regard to its Cybertruck. Based on a June 24 recall announcement, the company had delivered about 11,688 vehicles, and it appeared that all were recalled for in-shop repairs. New orders won’t be delivered until next year.

As the high price/sales ratio suggests, Tesla represents a buy-and-hold stock — one likely to pay off over time. Twenty-three analysts reported by Yahoo Finance give Tesla an average 12-month target of just $211.17, down slightly from last month, with a low estimate of $24.86 and a high of $310. While just one analyst of the 23 watching the stock recommends selling, most currently rate it “hold” or “underperform.”

2. Ford Motor Co. (F)

• Share price as of Oct. 2: $10.48
• 52-week range: $9.49 – $14.85
• Price/sales ratio: 0.23
• Price/earnings ratio: 10.92

A legacy automotive manufacturer with a solid history, Ford‘s EV sales trail behind Tesla’s by orders of magnitude. However, Ford’s EV sales were up 61% in the second quarter of 2024, driven by a 56% increase in Marverick and F-15 hybrid sales, according to Ford’s Q2 earnings report. Sixty percent of Maverick hybrid buyers come to Ford from other brands.

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The Ford Mustang Mach-E, which hit showrooms in December 2020, outsold Tesla Model X and Model S as well as models from Hyundai, Kia and Volkswagen last year, according to a ranking from Statista. Ford’s F-150 Lightning all-electric pickup truck also shows promise, especially in light of the slow rollout of Tesla’s Cybertruck.

Closing at $10.48 on Oct. 2, the stock has a consensus price target of $12.49. The stock yields dividends of 5.73%, which can make it desirable for investors seeking income from stocks they hold. According to Yahoo Finance, the stock has four “buy” ratings, 18 “hold” ratings and two analysts who rate it “underperform.”

3. Nio (NIO)

• Share price as of Oct. 2: $7.21
• 52-week range: $3.61 – $9.57
• Price/sales ratio: 1.51
• Price/earnings ratio: N/A

Nio led the pack of Chinese EV stocks to see sharp gains because of solid vehicle deliveries in June — 21,209, a 98.1% increase compared to a year ago. The Q2 total is 57,373, a 143.9% increase year over year.

Nio’s strategic partnership with luxury EV maker Lotus Technology is its latest measure designed to advance the standardization of charging and battery swapping to facilitate easier recharging.

Nio’s swapping business model is subscription-based leasing, which allows EV owners to swap their drained batteries for freshly charged ones, as they sit in their vehicles, according to the Harvard Business Review. The ability to lease as many batteries as needed eliminates a major obstacle to widespread EV adoption — concern over the low range of EVs and the relative scarcity of charging stations.

Nio is not yet profitable, and it missed earnings forecasts in the last four quarters. But in an October release of September and third-quarter delivery results, the company reported a 35.4% year-over-year increase for September and an 11.6% increase for the quarter. Share prices were already on a tear. They now sit about even with the 12-month price target of $7.25, putting Nio firmly in buy-and-hold territory.

4. XPeng (XPEV)

• Share price as of Oct. 2: $13.34
• 52-week range: $6.55 – $18.74
• Price/sales ratio: 2.35
• Price/earnings ratio: N/A

Nio’s main rival in China is XPeng, which produces the G3 SUV and P7 four-door sports sedan. XPeng’s revenues jumped 14.2% year over year in 2023, compared to Nio’s 12.9%. Those results are a testament to EVs’ continued growth in China.

XPeng reported year-over-year revenue increases and over 52,000 vehicles delivered in the first half of the year, beating 2023 deliveries for both quarters. Its deliveries set a record in September 2024, rising 39% year over year, and third-quarter deliveries rose 16%.

Despite the company’s promising future and recent stock rally, shares are still down 8.57% since the beginning of the year and over 26% over the past year. XPeng traded at $13.34 on Oct. 2. Of the 30 analysts who rated the stock in September, 18 called it a “strong buy” or “buy,” 11 rated it a “hold” and the remaining one rated “underperform.” The average price target of $12.01 represents 10% downside.

5. ChargePoint (CHPT)

• Share price as of Oct. 2: $1.31
• 52-week range: $1.21 – $4.62
• Price/sales ratio: 1.22
• Price/earnings ratio: N/A

With 30,000 charging station locations worldwide, ChargePoint is the largest and most open electric vehicle charging network in the world. It currently operates in 14 countries, including across the U.S. and Europe. ChargePoint has delivered 269 million charges, according to its website.

Even so, ChargePoint stock plummeted in the second half of 2023 and has yet to regain its footing. Seeking Alpha said last year that the company has a “long runway for growth,” which means you’ll be getting shares “on sale” right now. The stock is recommended for growth investors with a long-term horizon. Analysts expect patience to pay off with 90% growth in share prices over the coming year. Earnings met analyst forecasts in the third quarter after two earnings surprises in a row.

While ChargePoint, like many EV stocks, is struggling because of slow adoption by consumers, it provides vital infrastructure for EVs and has the market share to continue dominating the charging network space.

6. General Motors (GM)

• Share price as of Oct. 2: $44.82
• 52-week range: $26.30 – $50.50
• Price/sales ratio: 0.31
• Price/earnings ratio: 5.04

GM is another legacy automaker making its mark in EVs. Its Chevy Bolt was America’s third-best-selling EV last year, with 62,000 vehicles sold, according to U.S. News & World Report. That’s not to say GM’s entrance into the EV market has been a smooth one. The Bolt was discontinued in the wake of a class-action suit brought by Bolt owners whose cars had defective batteries prone to catching fire. The company recalled all Bolts in 2021, CBS News reported.

Looking forward, GM is phasing out its Malibu in favor of producing more EVs, including a next-generation Bolt expected to go into production late next year, on the same assembly line as the Cadillac XT4, according to Reuters.

Of 24 analysts watching the stock, one-third rate it a “strong buy” or “buy,” 13 rate it a “hold” and the remaining expect it to underperform the market. GM has beat analysts’ earnings estimates in each of the last four quarters. The price target is $54.58, about 22% higher than the current price.

7. Albemarle (ALB)

• Share price as of Oct. 2: $94.07
• 52-week range: $71.97 – $177.52
• Price/sales ratio: 1.48
• Price/earnings ratio: N/A

MarketBeat recently called Albemarle “the best EV stock you haven’t considered,” citing successful cost-saving measures, a strong financial outlook for 2024 and benefits from the continued growth of the EV market as reasons why Albemarle is worth investors’ attention.

Albemarle is not a pure-play EV stock — the company makes specialty chemicals, including lithium compounds produced by its Energy Storage business segment for EV batteries, among other uses. The benefit to investors is risk-mitigating diversification coupled with the potential for growth as the EV industry matures.

ALB shares are down 34.89% year to date and 44.68% over the past year — slight improvements for both periods. While not bargain-basement cheap, analysts’ price target is $107.94, almost 15% higher than its current price. Twelve out of 20 analysts rating the stock give it a “hold”; the remainder rate it a “buy” or “strong buy.”

Investing In an EV ETF

If you’re interested in investing in the EV market but prefer to steer clear of taking a chance on one company, an exchange-traded fund is a way to build a diversified portfolio around a strong and rapidly growing industry. Save time and avoid sifting through all the options of EV manufacturers, EV charging station suppliers and companies that create components like batteries or chips with an exchange-traded fund like IDRV.

iShares Self-Driving EV and Tech ETF (IDRV)

• Share price as of Oct. 2: $32.04
• 52-week range: $25.66 – $36.65
• Price/sales ratio: 1.09 (for equity holdings)
• Price/earnings ratio: 9.67

IDRV from iShares tracks the stocks of companies that stand to benefit from growth and innovation in and around electric vehicles, battery technologies and autonomous driving technologies. Its holdings are diversified across 50 companies, including Rivian, Tesla and Lucid.

U.S. News & World Report gives IDRV a high ranking in the industrial sector, calling it a “Best Fit” fund in the category. The fund has net assets of $188 million and was trading at $32.04 per share when the market closed on Oct. 2.

Why Invest In an EV Stock?

EV stocks are appealing for their growth potential, as well as to investors seeking to support sustainable companies. Stock investing should not be an emotional play, but it is fun to invest in brands you believe in, and in nearly every case, EV manufacturers are seeking to build a better, more eco-friendly world with their technology solutions.

How To Get Started Investing In EV Stocks

EV stocks are highly volatile, but that doesn’t mean you shouldn’t invest. EVs are here to stay, and price dips often present good buying opportunities.

Once you’ve done your research on your favorite EV companies, as well as those showing promise in the industry and in related industries, you can purchase shares through an app from almost any stock brokerage.

Pay attention to the fees and commissions they charge, as well as account minimums, when you choose a brokerage. Many stock trading apps offer commission-free trading. If you are interested in ETFs or foreign stocks, you’ll want to make sure you can trade those on the platform you choose.

Investing in EV stocks is a way to support future sustainability efforts while building a portfolio with plenty of room for growth.

How To Identify the Best EV Stocks To Buy Now

When you’re evaluating top EV stocks, or stocks in any industry, it’s important to look at the company’s growth potential vs. its current value. Look at the company’s cash flow, earnings and other fundamentals.

Top Stocks To Invest In

Best Energy Stocks

• Gold Stocks
• Lithium Stocks
• Mining Stocks
• Oil Stocks
• Natural Gas Stocks
• Energy Stocks
• Renewable Energy Stocks
• ESG Stocks

Best Tech Stocks

• Tech Stocks
• Biotech Stocks
• Artificial Intelligence Stocks
• Semiconductor Stocks

Dawn Allcot contributed to the reporting for this article.

Data is accurate as of Oct. 3, 2024, and is subject to change.

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