By now, you’ve all heard about the electric vehicle (EV) boom. You’re well aware that global leaders want millions of them on the roads in the next decade. You know President Biden wants at least 50% of all new autos to be electric by 2030. And you’ve constantly heard about some of the top EV stocks to buy and hold – all of which are still buys. So what’s new?
The U.S. Energy Department just said it would provide $2 billion in grants, and $10 billion in loans to support “The conversion of U.S. automaker and supplier facilities into manufacturing centers for hybrid and electric vehicles,” as noted by CNN. The agency is also expected to invest another $3.5 billion to boost U.S. production of EV batteries. All of which should fuel higher highs in these top EV stocks to buy and hold, including:
EV Stocks to Buy and Hold: Standard Lithium (SLI)
One of the standout lithium stocks to buy is Standard Lithium (NYSEAMERICAN:SLI). For one, Standard Lithium is an excessively oversold lithium company that’s operating in the East Texas Smackover region. The same region near where Exxon Mobil (NYSE:XOM) just bought drilling rights to 120,000 gross acres. Even better, Standard Lithium just claimed it found “the highest confirmed lithium grade brine” in the region, too.
We also have to consider there’s not enough lithium supply to meet demand. It’s why automakers are inking major lithium supply deals directly with miners. And it’s why producers have become increasingly worried they won’t be able to meet demand any time soon. Making matters worse, Corinne Blanchard, a director at Deutsche Bank says, “There will be a deficit of 40,000 to 60,000 tonnes of lithium carbonate equivalent by the end of 2025. This will increase to 768,000 tonnes by the end of 2030,” as noted by CNBC. In short, until supply can keep up with demand, lithium prices will run higher.
Li Auto (LI)
Or, take a look at Li Auto (NASDAQ:LI). After pulling back from $47.33 to a recent low of $38.25, the EV stock is just starting to pivot higher. In the near term, I’d like to see LI refill its bearish gap around $46 a share. Bank of America (NYSE:BAC), Barclays (NYSE:BCS), and Citi (NYSE:C) all just increased their price targets on LI, too.
Helping, the company just delivered 34,914 vehicles in August – a growth rate of about 664% year over year and 2.3% month over month. With earnings, the company just posted Q2 EPS of 36 cents, which beat estimates by 17 cents. Revenue was up just above 228% to $3.95 billion, which beat estimates by $150 million.
In Q2, vehicle sales jumped 229.7% to $3.86 billion. As for the third quarter, the company expects to see deliveries of between 100,000 and 103,000 – which would be an increase of 277% to 288.3% year over year. Li Auto also sees Q3 revenues of between $4.46 billion and $4.59 billion – growth of between 246% and 256.4%. In short, there’s plenty to like about this oversold EV stock.
Ford Motor (F)
We can also look at oversold shares of Ford Motor (NYSE:F). After diving from about $15.25 to a low of $11.58, the auto stock appears to have caught strong support and is just starting to pivot higher. It’s another one that’s also over-extended on RSI, MACD, and Williams’ %R and could potentially refill its bearish gap around $13.75 initially.
In fact, while we wait for it to recover, we can collect the company’s current 4.94% yield. And while the company is losing money on electric vehicles at the moment, it’s still charging ahead with its EV plans. Better, according to CEO Jim Farley, “Ford is still fully committed to its EV expansion. He noted that even its lower target for 2023 — 400,000 EVs by the end of the year — is still up four-fold from 2022,” as noted by NPR.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
