2024’s EV Market Leaders: 3 EV Stocks Outpacing Tesla You Cannot Miss

The World has seen a variety of electric car adoptions in recent years. In 2023, the sales of electric vehicles surpassed 1 million, which is enormous. However, the year ended with a downshift because of macroeconomic factors. Despite this, specific EV stocks showed stability, offering a long-term growth possibility. We will discuss three major EV stocks that stand out for consideration in 2024. These three stocks are said to outpace Tesla and lead the market in 2024. 

Moreover, foreseen rate cuts in 2024 will further increase the growth potential of EV-related growth stocks in the long run. Read on to know the three EV stocks investors should consider now.

What are EV Stocks?

Before going further, you first need to understand what EV stocks are. EV or electric vehicle stocks include electric battery manufacturers, electric vehicle manufacturers, and firms that build charging stations and electric motors. On a broader perspective, EV stocks may also include semiconductor and mining firms that make EV components. If you are searching for EV stocks, there are many to select from. 

However, it would help if you remembered that investing in a well-diversified exchange-traded or index fund is better than investing in individual stocks. The prime reason is that investing in a particular stock is riskier, so playing safe is better. While stock pickers will usually hunt for a robust track record of performance, many electric vehicle stocks have yet to have one, which makes the electric vehicle market uncertain.

Three Leading EV Stocks in 2024

The three major EV stocks will probably outshine Tesla in the future. Please keep reading to know them.

1- BYD Co. (BYDDF)

BYD Co. is one of Tesla’s strongest competitors and almost outpaced Tesla in deliveries. Also, it is the second-largest battery manufacturer in the World. Furthermore, BYD’s global footprint is that they export their cars globally, which positions it advantageously. The manufacturer’s broader electric vehicle product range, including plug-in hybrid vehicles, contributes to a wider market share. Plus, BYDDF showcases 23.7% Return on Equity and 11.26% Return on Invested Capital, which is a robust figure. 

Another factor that makes BYD appealing is despite a 15% market drop, they made a favourable 0.11×price-to-earnings-growth ratio, indicating possible recovery. As a potential competitor of Tesla, BYD delivered approximately 2,079,638 cars year-to-date, which shows a 43% annual increase. The thing that makes BYD the second largest battery manufacturer is that it stands out by prioritizing affordability with the best quality. It proves itself to be the budget-friendly alternative to Tesla. In 2023, BYD sold 3.02 million cars, a 61.9% manual increase, highlighting its internal appeal in the expanding electric cars market.

2- LI Auto (LI) 

Li Auto is popular for electric SUVs and has an exceptional mix of electric and combustion abilities. This auto company is gaining popularity as it aims to launch its first electric vehicle, the MEGA MPV, in March. With over 30,000 pre-orders noted, the stock holds a pledge amid current Chinese market sell-offs encouraged by economic anticipations and real estate problems. In November, Li Auto gained extraordinary electric vehicle delivery growth with a 172.9% manual increase to 41,030 units. It is predicting even better and outstanding figures in the future. 

The auto manufacturer is all set to launch its flagship Li MEGA multi-purpose car on March 1, which will mark a substantial milestone as their first utterly electric car. Additionally, in December, the firm attained a milestone with 50,353 car deliveries, making its ninth month of record-breaking sales. This growth revolution solidifies Li Auto’s position as a robust electric vehicle market player and makes it attractive to long-term investors.

3- XPeng Inc.

XPeng is a Chinese company worth $12 billion that makes and sells sport sedans, SUVs, and family sedans. In November, XPeng’s deliveries jumped by 245% annually, constantly unlocking the demand. While state car makers in the US are all sixes and sevens over the transformation to electric vehicles, Chinese electric vehicle firm Xpeng told CNBC that the latest launched×9 model could be a groundbreaker for the industry. 

However, the Xpeng company finished in the positive column the previous year, and the stock has since fallen from its 2023 highs. 

Is it a Good Idea to Invest in Stocks in 2024?

It is a hard fact to accept, but some electric vehicle startups will not be around 10-15 from today. If you plan to invest in EV stocks, examine the following things: its costs, revenues, and the chance of gaining profitability. It might be possible that some EV stocks will seem cheaper this year in the electric vehicle market, but if they do not possess potential in the longer run, then it might not be a profitable investment.

Auto Stock Comparison Between Tesla, Li Auto, XPeng, and BYD

Here is a brief stock comparison of Tesla with its current competitors:  

Company Name	Ticker Symbol	Recent Performance	Notable Achievements
Tesla	TSLA	Fluctuated in 2023, but long-term growth	Market leader in EV production
Li Auto	LI	Experienced steady growth in 2023	Focused on smart EV technology
XPeng Inc.	XPEV	Strong performance, increased market share	Innovating in autonomous driving
BYD Company Ltd	BYDDF	Stable growth in 2023	Diversified portfolio, EVs, and more

Conclusion

The electric vehicle market is a flourishing investment hub; there are a lot of investment opportunities in the EV market. Undoubtedly, Tesla has been ruling the EV market for a long time. However, now there is competition in the market, which is getting more intense yearly. Many Tesla competitors in the market have proven themselves as a better and more affordable alternative to Tesla; for instance, Li Auto, XPeng, and BYD are the three leading EV stocks these days. Lastly, if you want to invest in the EV market, do it smartly after thorough research.

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