The electric vehicle (EV) is a market with high growth potential as both consumers and governments are beginning to favor EVs over traditional gas-fueled vehicles. In 2023, global electric car sales totaled 13.6 million units. This year, the market is expected to reach 17 million EVs sold — a 27.1% increase. Despite fierce market competition, the increasing demand for EVs still leaves EV companies with a large room for growth. Below are the three EV stocks to buy in April.
Li Auto (LI)
Li Auto (NASDAQ:LI) is a Chinese electric vehicle company that specializes in premium quality electric SUVS. While its stock is down 13.76% year-to-date, the company has made headlines for a stellar year-on-year increase in sales volume of 53%, delivering 28,984 units last month alone. This rapid growth can be attributed to the company’s commendable business model of filling a niche in the EV industry for family-oriented EV cars with extended range capabilities.
Over the next five years, analysts expect Li Auto’s earnings to increase at a compounded rate of 75%, and this high projected growth is backed by a low debt-to-equity ratio of just 0.03, and a solid cash reserve of $10.2 billion.
China’s electric vehicle industry is projected to grow 27% this year by Bank of America. With Li Auto filling a pivotal need amongst the Chinese consumer base, expect this company to become a cornerstone of many traders’ portfolios in the months to come.
BYD (BYDDY)
BYD (OTCMKTS:BYDDY) is a Chinese electric vehicle manufacturer that holds the second-highest global EV market share — a close second to Tesla. In FY 2023, BYD sold 526,409 units, beating its biggest competitor Tesla, which had sales of 484,507 units.
BYD’s competitive edge in the electric vehicle industry comes from its business model which implements vertical integration. The Chinese EV company is the leading producer of lithium ion rechargeable batteries. It has a fully integrated supply chain spanning lithium mines, lithium processing, battery production and an in-house computer chip unit.
Moreover, BYD has showcased impressive momentum this year. It’s seen total vehicle and EV sales increase by 41% and 28% respectively last month. This contributed to its overall 88.1% increase in Q1 sales year-over-year.
The breakout from a pennant pattern indicates potential upward momentum, making it a great opportunity for investors to consider buying. With strong sales and growth potential, BYDDY is one of the top EV stocks to buy.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) is an American EV pioneer with the largest global EV market share.
The company’s reported total vehicle deliveries for Q1 2024 were not great, losing to its competitor BYD. However, its Q4 revenue totaled $25.17 billion, which is a 3.5% increase year-over-year.
In 2024, Tesla has exciting plans and a lot of things to look forward to for investors. Elon Musk has announced that Tesla will start its global expansion of the Model 3 and Model Y vehicles. Tesla is also expected to launch a large vehicle in Texas, which is supposed to contribute to its production.
Yet, Tesla is still likely to remain as the industry’s top producer as the company still boasts large sales, global dominance and recognition. It’s also looking to explore and expand in international markets like India and Indonesia. Tesla still displays strong reasons for investors to buy its stocks.
On the date of publication, Andy Kim 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