In this article, we discuss the 10 hot EV stocks to buy now. If you want to read about some more hot EV stocks to buy now, go directly to 5 Hot EV Stocks To Buy Now.
The electric vehicle (EV) industry was heavily impacted by the economic downturn in 2022. As interest rates increased and financial markets fluctuated, the stock prices of many EV firms declined. This was a disappointing year for investors who had invested in Tesla, Inc. (NASDAQ:TSLA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Freeport-McMoRan Inc. (NYSE:FCX) and other companies with high exposure to the EV industry. Rivian Automotive, Inc. (NASDAQ:RIVN), which had a market value higher than Ford Motor Co. shortly after going public in 2021, lost over 70% of its value in the past year.
The situation for EV start-ups was even direr. Arrival, an electric van manufacturer, warned that it could run out of cash in less than a year. Lucid Group Inc. (LCID.O), supported by Saudi Arabia’s sovereign wealth fund, encountered difficulties in constructing its luxurious Air EVs. Xpeng Inc., a Chinese competitor to Tesla, saw its shares decrease in value by over 80%.
However, despite these challenges, the outlook for the EV industry in 2023 is optimistic. According to Reuters, despite low sales, electric vehicle production is set to surge in 2023. In 2022, well-established automobile manufacturers such as Mercedes, Ford, and General Motors introduced numerous new electric vehicles to compete with Tesla and other start-ups. The ramp-up of mass production for these vehicles will commence in 2023. Tesla Inc. rises to become the top-valued automobile company globally with a market share of 65%. The total EV industry is worth around $800 billion as of right now.
According to S&P Global, the market share for electric vehicles in new vehicle sales is predicted to reach 40% by 2030. Tesla, Inc. (NASDAQ:TSLA) CEO, Elon Musk, has stated that Tesla, Inc. (NASDAQ:TSLA) will be the most valuable company in the world. During the most recent earnings call, Elon Musk reported that the company saw its strongest orders to date in January. The last quarter also marked Tesla, Inc. (NASDAQ:TSLA)’s highest-ever quarterly revenue, operating income, and net income in its history. Additionally, Tesla cut global EV prices by up to 20%, intensifying competition through aggressive discounts.
Governments around the world are also supporting the growth of the EV industry through incentives and regulations. The push towards sustainable transportation is increasing, which is expected to further drive the growth of the EV industry in the coming years. The market for charging infrastructure is also expected to grow, creating new opportunities for companies in this sector.
The increasing demand for EVs is also expected to drive growth in the lithium-ion battery market. A report by Technavio predicts that the global lithium-ion battery market will grow by 17% in 2023, driven by the increasing demand for EVs and energy storage systems. The industry is also expected to see growth in the recycling and reuse of batteries, as companies look for ways to reduce waste and improve sustainability.
Our Methodology
For this article we first used stock screeners to identify EV stocks that have posted positive share price gains in 2023 so far and have an average 3-month volume of more than 5 million as of January 31. From this resultant dataset we picked the stocks with highest volumes and share price gains. The list is ranked in ascending order of average 3-month share volume.
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Hot EV Stocks To Buy Now
10. Fisker Inc. (NYSE:FSR)
Number of Hedge Fund Holders: 15
Avg Volume: 5.5M
YTD Perf: +2.48%
Fisker Inc. (NYSE:FSR) develops, manufactures, markets, leases, or sale of electric vehicles. On December 6, Fisker revealed that its CEO Henrik Fisker and CFO/COO Geeta Gupta-Fisker bought 33,700 shares of Class A common stock. Furthermore, the company’s chief accounting officer, John Finnucan, acquired 450.095 shares of Class A stock.
On November 29, 2022, Evercore ISI analyst Chris McNally initiated coverage of Fisker Inc. (NYSE:FSR) stock with an Outperform rating and $15 price target, noting that the company expects FY23 revenue to exceed expectations by 40% to 50% and a path to roughly 40,000 deliveries.
At the end of the third quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $104.4 million in Fisker Inc. (NYSE:FSR), compared to 11 in the preceding quarter worth $110.7 million.
Just like Tesla, Inc. (NASDAQ:TSLA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Freeport-McMoRan Inc. (NYSE:FCX), Fisker Inc. (NYSE:FSR) is one of the hot EV stocks to buy now according to elite investors.
9. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 25
Avg Volume: 5.5M
YTD Perf: +10.70%
Stellantis N.V. (NYSE:STLA) engages in the design, engineering, manufacturing, distribution, and sale of automobiles and parts. On January 20, Stellantis was reportedly planning to temporarily halt production at one of its plants in south-eastern Italy due to persistent supply chain issues. According to Reuters, the work stoppages are set to begin in the near future as the automaker faces a shortage of parts required for production. Union representatives informed Reuters that the chip shortages are particularly affecting production. The duration of the pause remains unknown at present.
On January 30, 2023, Berenberg analyst Adrian Yanoshik maintained a Buy rating on Stellantis N.V. (NYSE:STLA) stock and lowered the price target to EUR 18 from EUR 19.
At the end of the third quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $905.5 million in Stellantis N.V. (NYSE:STLA), compared to 25 in the preceding quarter worth $714.6 million.
Among the hedge funds being tracked by Insider Monkey, Boston-based firm Arrowstreet Capital is a leading shareholder in Stellantis N.V. (NYSE:STLA) with 29 million shares worth more than $349.4 million.
8. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 20
Avg Volume: 11.4M
YTD Perf: +22.06%
Li Auto Inc. (NASDAQ:LI) designs, develops, manufactures, and sells new energy vehicles in the People’s Republic of China. On December 9, Li Auto issued a press release regarding its third-quarter results. The losses per share came in at $0.18, missing the expectations by $0.09. Additionally, the company’s revenue of $1.31 billion, a 20.1% increase YoY, fell short of expectations by $60 million.
On December 15, 2022, CLSA analyst Aaron Li maintained a Buy rating on Li Auto Inc. (NASDAQ:LI) stock and lowered the price target to $31 from $49, highlighting that after the Fed’s rate hikes, the market is concentrating more on profitability, but Li is still gaining great momentum.
At the end of the third quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Lucid Group, Inc. (NASDAQ:LCID), compared to 28 in the preceding quarter worth $1.4 billion.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Li Auto Inc. (NASDAQ:LI) with 17.2 million shares worth more than $396 million.
7. General Motors Company (NASDAQ:GM)
Number of Hedge Fund Holders: 74
Avg Volume: 13.5M
YTD Perf: +16.88%
General Motors Company (NASDAQ:GM) designs, builds and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. On January 31, Lithium America’s stock rose by 10.1% before the market opened following their announcement of a joint investment with General Motors to develop the Thacker Pass mine in Nevada, which is the largest known lithium source in the US.
On January 25, 2023, JPMorgan analyst Ryan Brinkman maintained an Overweight rating on General Motors Company (NYSE:GM) stock and lowered the price target to $57 from $59, noting that the advisory decreased GM’s out-year expectations to account for price and mix headwinds, but still expects a minor beat in the fourth quarter.
At the end of the third quarter of 2022, 74 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in General Motors Company (NASDAQ:GM), compared to 75 in the preceding quarter worth $3.4 billion.
In its Q3 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and General Motors Company (NASDAQ:GM) was one of them. Here is what the fund said:
“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken the steps necessary to focus the company on the most profitable segments and move into a position to compete in an electrified and autonomous world. With the recent rise in interest rates, there was a meaningful selloff in the auto industry, which presented us an attractive entry point to a name we know well.”
6. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 30
Avg Volume: 20.3M
YTD Perf: +5.26%
Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, manufactures, and sells electric vehicles and accessories. On January 4, Rivian Automotive announced production and delivery numbers for Q4 and the full year, falling short of estimates. The automaker produced 10,020 vehicles in the fourth quarter and delivered 8,054 vehicles, with a total of 24,337 vehicles produced and 20,332 vehicles delivered for the year. The Normal, Illinois-based company ended the quarter with 2,000 vehicles in transit, representing less than 5% of its FY23 projections.
On January 25, Morgan Stanley analyst Adam Jonas maintained an Overweight rating on Rivian Automotive, Inc. (NASDAQ: RINV) stock and lowered the price target to $28 from $55, noting that electric vehicles, or EVs, are transitioning from a severe lack of inventory to a potential surplus, and Tesla’s recent price reductions are just the latest indication the EV market may be entering the ‘shake-out’ phase.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Coatue Management is a leading shareholder in Rivian Automotive, Inc. (NASDAQ:RIVN) with 19.6 million shares worth more than $645 million.
In addition to Tesla, Inc. (NASDAQ:TSLA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Freeport-McMoRan Inc. (NYSE:FCX), Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the hot EV stocks to buy now according to elite investors.
In its Q3 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Rivian Automotive, Inc. (NASDAQ:RIVN) was one of them. Here is what the fund said:
“Rivian Automotive, Inc. (NASDAQ:RIVN) manufactures electric vehicles (EVs) for the consumer and commercial markets. We initially invested in the company when it was privately owned. Among the many things that differentiate this startup is its substantial cash balance and relationship with Amazon, which is both an investor in the company and the first customer for Rivian’s commercial van. Several positive developments contributed to share strength in the quarter, including the company’s announcement that production of its R1 pickup trucks and EV delivery vans increased nearly 70% over the previous quarter. Management also reaffirmed its production target of 25,000 vehicles for 2022. Despite raising the price of its R1 truck earlier this year, Rivian continued to see strong demand for its vehicles, demonstrated by 98,000 pre-orders for its R1 truck and SUV. Although we are pleased with the company’s progress, we liquidated our position as Rivian approached the high end of our market cap threshold and its relative valuation became less attractive.”
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Disclosure. None. 10 Hot EV Stocks To Buy Now is originally published on Insider Monkey.
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