Electric vehicle makers have had a bumpy ride since the start of 2022. The China lockdowns, supply chain issues, and negative sentiments of the investors led to a dip in production. This, and the semiconductor shortage dampened the progress of the industry. However, the EV industry remains one of the most attractive sectors today and it is still in the growth stage.
A range of electric vehicle companies are competing for consumers and this has propelled the valuation of the stocks. However, the current macroeconomic situation harmed EV stocks more than expected and most of these companies are far from reporting profits but they are a solid bet. They could turn profitable in the coming years and might also become the future of the auto industry.
In the short term, the stocks could see some constraints but even they are starting to reduce. The dip in EV stocks has generated a great opportunity to make your move. Here’s a look at the seven best electric vehicle stocks you can invest in this month.
Best Electric Vehicle Stocks: Li Auto (LI)
Li Auto (NASDAQ:LI) looks very promising at the current level. The stock is up 55% in June and it has a lot to look forward to. The company launched its second model, L9 SUV in June which gave the stock a much-needed push. Its deliveries also saw a strong recovery in June. The company delivered 13,024 EVs in the month, a significant rise from the dip in April. Its revenue is also increasing at a solid pace.
Despite reporting a loss, Li Auto looks like it is on the right path and could report strong fundamentals this year. It beat the analyst estimates of $70 million in sales by reporting sales of $1.51 billion. Even the gross margins were much higher as compared to the same quarter the previous year.
The company might have a tough quarter this year but the long-term picture is nothing but promising. Lucid is showing steady growth with time and revenues are expected to rise in the coming years.
Nio (NYSE:NIO) is another top contender in the EV industry. The company has already made a solid mark in the EV sector and is steadily expanding.
It reported better than expected deliveries and this will reflect on the stock. NIO stock was once trading as high as $55 but is close to $21 today. This could be a great opportunity to buy the dip as Nio remains one of the best electric vehicle stocks to invest in.
The company reported 12,961 deliveries in June, a whopping 60% rise from the previous year and an 84% increase from May deliveries. It is expected that Nio will report impressive quarterly results and the stock is a buy before that. The company remains unprofitable even today but the long-term picture looks highly impressive. It has made its entry into Europe and is planning to expand there.
Despite the lockdowns in China and the negative sentiment surrounding the stock due to delisting fears, Nio stood its ground and is rising again. It has done significantly well in increasing the sales and deliveries every quarter. If Nio continues to report strong deliveries and sticks to its expansion plans, it will be able to show monstrous growth in the next five years.
Next on my list is Fisker (NASDAQ:FSR). The company is still in the early stages of growth but the EV looks promising and could compete with some of the well-established players in the industry.
With more than 50,000 reservations and 1,500 fleet reservations, Fisker looks attractive. If the company manages to stick to the production schedule, it can report impressive growth in the long term.
Investors who like to bet on potential can think of FSR stock as a great buy. It is a good time to take your position as the stock is trading below $10.
A well-known name in the industry, Ferrari (NYSE:RACE) plans to launch its first EV supercar in 2025.
As the company prepares to join the EV companies after resisting the shift for a long time, it is an opportunity to bag the stock before it soars. The market sentiment around Ferrari has been very bullish and the consensus around it remains highly positive.
RACE stock is not an EV stock right now but it could soon join the EV race. It currently has only plug-in hybrid cars but that will change soon. The company plans to report 40% EV sales in 2030.
Ferrari’s profits are consistently rising and the stock is trading at $191, significantly lower than the 52-week high of $278. Ferrari has customers that belong to the premium category and the business is doing well even in a crisis.
Lucid Group (LCID)
Lucid Group (NASDAQ:LCID) is generating huge interest in its car with massive reservations. The company beat analyst expectations in the quarterly results and delivered 360 cars.
It aims to report deliveries of 12K to 14K vehicles this year. It cut the target from 20K due to the pandemic and supply chain disruptions. However, the management remains confident of hitting the target.
LCID stock has taken a beating this year and is down 70% from its all-time highs. The company is building a new manufacturing plant in Saudi Arabia, has 30,000 reservations, and holds a cash balance of $5 billion which can be used for the production and expansion goals throughout the year.
Even if half the reservations turn into actual sales, it can generate massive revenue for Lucid. The stock is trading at a discount currently and it is a great chance to add it to your portfolio.
Another hot stock in the EV industry, XPeng (NYSE:XPEV) is a luxury EV maker who has impressed investors with solid delivery numbers.
The company reported deliveries of 15,295 EVs for June, a 131% rise from the same period the previous year. It has delivered a total of 68,983 EVs in the first half of the year and I believe that there is a lot to look forward to. The second half of 2022 could be even better for XPeng.
It delivered 34,422 EVs in the second quarter and the company is still in a growth state. The supply chain disruptions could have lowered the delivery numbers which means we will see bigger numbers in the coming quarters.
XPeng is also expanding across Europe and has opened Experience stores across Netherlands and Denmark. XPEV stock is down 34% over the past 6 months but has recovered significantly over the past month. It is trading at $30, much lower than the 52-week high of $56.
Best Electric Vehicle Stocks: ChargePoint (CHPT)
What’s an EV if you do not have the resources to charge it? No list of EV stocks can be complete without ChargePoint (NYSE:CHPT).
The top EV infrastructure stock holds more than 70% of the market in America and has a presence across Europe. It saw a massive rise in revenue from the European market last year. It generates revenues from the sale of chargers, which are essential for EVs and their demand has seen a consistent rise.
The stock is down 30% over the past six months and is trading at $12 today, making it a solid buy. Besides the chargers, it earns revenues from warranties and subscriptions that are also gaining in popularity as the EV industry expands. CHPT stock is expected to outperform in the long term.
On the date of publication, Vandita Jadeja 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.