Dividend Stocks

The 2025 Millionaire’s Club: 3 EV Stocks to Buy Now

EV stocks to buy have been popular since Tesla’s (NASDAQ:TSLA) shares made several “Tesla millionaires.”

Early Tesla stock investors, notably during the IPO, made big money. Regular retail investors like Laura Goldman bought early after the IPO and now owns over $1 million in stock. Same with early investor Basel Termanini who saw his stake increase to around $2.5 million. The stock has returned 13,764% overall.

Further increases are predicted, with worldwide electric car sales reaching 17 million by year’s end. Sales rose 25% in the first quarter of 2024 compared to 2023.

Tesla shares are costly for the ordinary investor. So in your quest to become the next industry millionaire, hunt for EV stocks to buy with at least a double-digit upside.

Li Auto (LI)

Li Auto electric car in store. Li Auto Also known as Li Xiang, is a Chinese electric vehicle (EV) company

Source: Robert Way / Shutterstock.com

One of the best EV stocks to buy is Li Auto (NASDAQ:LI) thanks to its $14.6 billion cash reserve and 800,000-unit sales forecast. Li Auto stands out among EV stocks due to being profitable on a net profit basis posting net income of 11.8 billion renminbi (RMB) ($1.7 billion), marking it as a standout among a trio of Chinese EV startups.

It aims to sell 800,000 devices by 2024 and open 800 outlets. Li will also deliver new models, like the 2024 L7 and L8 Air, in May at reduced prices. The cars boast improved suspensions and early birds will get subsidies from the company.

Meanwhile, the manufacturer is celebrating the April debut of the sub-300,000 RMB Li L6. With 30,000 monthly sales, Li hopes to compete with Tesla’s Model Y.

Li Auto shareholders require these actions after 80,400 deliveries in Q1, up 52.9% year-over-year but behind its 100,000 vehicle objective. In April, the automaker shipped 25,787 automobiles, 0.4% more than last year but 12% less sequentially.

However, due to its “best-in-class” management team and history of meeting ambitious objectives, Deutsche Bank analyst Edison Yu raised it to “buy” from “hold” despite decreasing the price objective by $4 to $41. Also recently, Bank of America lowered its price target for Li Auto but kept a “buy” rating owing to 2024 EV optimism.

General Motors (GM)

General Motors (GM) sign with blue and white logo and brick building in background

Source: Jonathan Weiss / Shutterstock.com

General Motors (NYSE:GM) will invest $35 billion on EVs through 2025 as it looks to broaden its appeal in an age when gasoline cars are fading. Analysts rate it a “Moderate Buy,” with an upside potential of 22%.

However, GM is an established heritage automaker with multiple successful business lines. Even though GM doesn’t say how much money its EV line makes, CFO Paul Jacobson said the division continues to lose money.

However, GM can afford this as it sold nearly 6.2 million vehicles in 2023, up from 5.9 million units in 2022. With U.S. sales the best since 2019, it gives GM plenty of cushion to pursue its EV ambitions. Due to strong U.S. demand for pickup trucks and bigger cars, the firm boosted its full-year profit prediction from $10.1 billion to $11.5 billion.

GM aims to produce between 200,000 and 300,000 Ultium-based EVs in 2024, after delivering 75,883 EVs delivered in 2023. Over and above that, the automaker will introduce V2H charging to all Ultium-based EVs by 2026. This will allow EVs to power homes during power blackouts.

Furthermore, GM is doubling the number of batteries it makes at its Factory Zero building to alleviate potential delays and is hiring former Tesla experts to streamline its processes.

Ultimately, CEO Mary Barra said it best, referring to 2024 as the “year of execution,” making sure to cement its position among the best EV stocks to buy.

ChargePoint Holdings (CHPT)

EV stocks: A close-up shot of a ChargePoint charging station.

Source: YuniqueB / Shutterstock.com

Offering over 274,000 active charging ports worldwide, ChargePoint Holdings (NYSE:CHPT) is a crucial supplier of EV infrastructure. Analysts rate it a “Moderate Buy” and project a 76% upside. Last year, the company reported 53% more charge events and distributed over 1 terawatt-hour of energy.

Meanwhile, ChargePoint has raised $232 million, including $175 million from institutional investors and $57 million from additional shares purchased. The capital will help ChargePoint become profitable on an adjusted EBITDA basis by the end of the fourth fiscal quarter of 2025. It lost $94.7 million in the latest quarterly results.

ChargePoint is trying to reorganize its operations by decreasing its workforce by 12%, which may save $33 million in yearly operating expenses.

ChargePoint has also released a new three-megawatt charging system that is meant to help the trucking business grow in the future. The business has also teamed up with Jumptech to provide quick and easy home EV charger setups for fleets.

Finally, ChargePoint is growing its business in Europe by taking advantage of its strong standing as a leader in North America. Currently, it is active in 16 European countries.

On the date of publication, Faizan 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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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