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Despite the current slowdown in the electric vehicle sector, the auto industry will pick up pace this year. The Fed is expected to reduce rates in the coming months, and we could see an improvement in consumer spending. Automakers have reported impressive January delivery numbers and are optimistic about the revival of the industry in 2024. It may take some time for all the EV stocks to recover, but a few stocks are trading at a discount today, and they have the potential to double in 2024. If you believe in the future of EVs and are ready to make the most of the transition, here are the EV stocks to double this year.
Li Auto (LI)
As one of the best Chinese EV makers in 2023, Li Auto (NASDAQ:LI) has a lot working for it this year. The company has impressed investors with strong deliveries and financials. After reporting over 50,000 deliveries in December, the company reported deliveries of 31,165 vehicles for January. While it is a month-over-month drop, it is a 105% year-over-year (YOY) increase. Its cumulative deliveries at the end of January stood at 664,529 vehicles. It aims to deliver 800,000 vehicles annually.
Li will start delivering Li MEGA next month and it could help Li Auto report stronger delivery numbers. LI stock is trading at $30.56 today and is up 22% in the year. However, it is down 11% year-to-date (YTD) and this is a chance to grab the stock. It has the potential to double this year and you could take home big gains.
Li Auto is a highly reliable company as compared to several other EV makers today, and it plans to introduce eight competitive models this year. It is also working on enhancing the technical capabilities of its autonomous driving features to meet the consumers’ expectations. In the third quarter, the company reported a net income of $385 million.
If you are looking for EV stocks to double, consider Li Auto as a top choice. This is one EV maker that has big plans for the year and is working on expanding its lineup. As the macroeconomic conditions improve, Li Auto will be one of the best out there. Yes, the January deliveries could have been better, but it is still a sharp YOY rise, and the upcoming results will beat expectations.
BYD Company (BYDDF)
One of the biggest EV makers today, BYD (OTCMKTS:BYDDF) is on an aggressive expansion spree and has been growing its network. The company is also the second-largest battery maker in the world and has reported impressive deliveries. Due to the price war in 2023, BYD had to resort to several price cuts and this led to massive sales. It has dethroned Tesla (NASDAQ:TSLA) with the highest deliveries and has also dethroned Volkswagen (OTCMKTS:VWAGY) as the best-selling car brand in Germany.
In the nine months ended September 30, the company saw a 57% YOY rise in revenue to $59.32 billion, and the profit saw a 115% rise YOY to hit $3.66 billion. The company has recently entered the shipping business and has set 5,000 cars on its vehicle carrier which is named BYD Explorer No.1.
This is a very important move for the company as it will make it easier for it to deliver cars to various countries while reducing the cost. This is a new roll-on, roll-off carrier that will head to India after making stops in Germany and the Netherlands. It speaks a lot about the demand for BYD cars. The company aims to add another seven vessels to the fleet over the next two years.
BYD has a diversified portfolio which works as a catalyst for the business, and it enjoys a strong pricing power that allows it to export and cater to the demand of the consumers. BYDDF is one of the best EV stocks today and it is down 13% YTD. Trading at $23.42, the stock is much lower than the 52-week high of $36, but it has the potential to hit $40s in the near term.
General Motors (GM)
General Motors (NYSE:GM) is a renowned automaker that is making a shift towards EVs. The company is investing in electric vehicles and aims to report a profit in the EV segment by 2025. Currently, the company is using the profits from the combustion engine models to fund the costs of the EV segment, and it aims to spend about $11 billion to $13 billion annually through 2025.
While it is not a pure-play EV maker, General Motors has been around the auto industry for years and understands the way it works. It reported strong quarterly results and impressed investors with solid guidance for the year. Its revenue came in at $43.0 billion and generated $11.7 in free cash flow in the year. Despite the disruption caused to the finances by the United Auto Workers strike, the company has recovered well. Its EPS came in at $1.24 and the stock rallied after the results.
It has issued strong guidance and expects a free cash flow in the range of $8 billion to $10 billion for the year and an EPS in the range of $8.50 to $9.50. The projections show that GM is committed to continuing the same momentum while the stock looks undervalued to me. GM stock is trading at $37 and is lower than the 52-week high of $43. It remains one of the top EV stocks to own after the results. The future is bright for GM, and owning the stock while it is trading at a discount is a smart move.
On the date of publication, Vandita Jadeja did not hold (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.