These companies could provide greater upside over the next decade than Tesla
- There are other options, aside from Tesla (TSLA), in the EV world.
- Li Auto (LI): A leader in the Chinese EV market, this company has seen a nearly 300% surge in vehicle deliveries.
- BYD Co. (BYDDF): It appears to be undervalued at current levels, given its massive size and market-leading position.
- Solid Power (SLDP): This growth stock looks well-positioned, even with this macro backdrop.
This challenging year for the electric vehicle (EV) industry is concluding on a positive note. As inflation subsides and consumer confidence improves, many EV stocks continue to rise. The shift to EVs is still in its early innings, with sustained demand growth expected for the long-term. Thus, now is a great time to look for high-growth options that may step out of Tesla’s (NASDAQ:TSLA) shadow in the near future.
U.S. EV sales surpassed 1 million in the first 11 months of 2023, marking a historic milestone. Automakers are now focusing on innovations, such as affordable batteries and new EV models, to further accelerate growth.
Let’s explore three EV stocks poised to benefit from these advancements.
Li Auto (LI)
Li Auto (NASDAQ:LI) reported a sales volume of 10,400 units for the week of December 4, with a weekly total of 13,000 units sold. This performance positioned LI AUTO-W as the top Chinese luxury car brand, securing the 4th place in total sales among new power brands in China.
Recently, Li Auto’s stock dipped from $42 to $35, presenting an opportunity rather than a cause for concern. Smart investors remain focused on Li Auto’s long-term strategies. Those include in-house chip production in Singapore and the development of the AD Max 3.0 autonomous driving platform.
CEO Xiang Li emphasizes the platform’s comprehensive autonomous and assisted driving capabilities. Therefore, investors are encouraged to watch for further advancements as LI solidifies its position in the global new-energy vehicle industry.
Byd Co. (BYDDF)
Byd Co. (OTCMKTS:BYDDF) achieved a milestone by officially outselling Nissan in a calendar month. It reached 301,833 unit sales in October amid strong EV demand in China. And with China’s expected 4% economic growth next year, BYD’s continued sales momentum is likely.
The company’s robust Return on Invested Capital (11.26%) and Return on Equity (23.7%) signal competitive advantage and value for investors. Despite a recent 15% market value decline, the favorable price-to-earnings-growth ratio of 0.11x suggests a potential recovery. Clearly, this makes BYDDF an appealing choice.
Additionally, Byd Co. emerges as a strong rival to Tesla, potentially surpassing Tesla’s delivery figures. With a global presence, BYD delivered 2,079,638 vehicles year to date (YTD), marking a 43% year over year (YOY) increase. The company, the world’s second-largest battery maker, experienced a 142% YOY profit surge in the first nine months of 2023.
Solid Power (SLDP)
Solid Power (NASDAQ:SLDP) stands out in the solid-state battery sector, actively advancing technology set to transform electric vehicles. Their solid electrolyte design enhances safety and features non-flammable properties. Additionally, it offers increased energy density and longer lifespan, promising a revolutionary shift in EV capabilities.
In Q3 2023, it generated $6.4 million, a significant jump from $2.8 million YOY. Nine-month revenue reached $15.1 million, showing robust growth of $7.5 million. However, increased operating expenses led to an operating loss of $21.5 million and a net loss of $15.1 million. Also, the company met BMW’s requirements, with the German automaker evaluating its potential. The partnership with BMW boosts confidence in SLDP stock, as their powder promises safer, longer-range batteries, marking a positive outlook for Solid Power’s financial performance.
This post originally appeared at InvestorPlace.
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.
