Looking for electric vehicle stocks to buy? There’s much handwringing going on here. Concerns are rising that consumers have lost interest in battery-powered cars, trucks, and SUVs. This is due to several factors: high prices, low battery range, and a lack of public infrastructure to support vehicles on roads and highways. In short, EVs are too impractical for consumers to buy.
While sales of electric vehicles in America surpassed one million units in 2023, they currently account for only 8% of all vehicles sold in the country. While EVs were forecast to command 50% of all vehicle sales in the U.S. by 2030, a recent outlook published by CarGurus says that it is more likely that electric vehicles will represent 23% of total vehicle sales by the decade’s end.
This reality might be sobering. However, electric vehicles remain the future of the automotive industry. And several companies are positioned to thrive in the EV space. Here are three electric vehicle stocks to buy before they enter the fast lane.
Electric Vehicle Stocks to Buy: Ford Motor Co. (F)
Ford Motor Co. (NYSE:F) announced that its American sales jumped 10.5% in February, led by hybrid and all-electric vehicle sales. The company sold 12,045 gas-electric hybrid vehicles as it renewed its focus on the technology. The February results also showed that sales of Ford’s fully electric vehicles increased 81% year-over-year, which is encouraging.
The latest sales figures from Ford buck the narrative that consumers have lost interest in electric vehicles. The strong EV sales data came right after Ford reported strong financial results for the fourth quarter of 2023. The company announced earnings per share (EPS) of 29 cents versus 14 cents that had been expected. Revenue came in at $43.20 billion compared to $40.12 billion that was estimated on Wall Street.
Ford also just paid its shareholders a special dividend of 18 cents per share in addition to its first-quarter regular dividend payment of 15 cents a share. F stock is up 1% year to date.
Toyota Motor Co. (TM)
Toyota Motor Corp. (NYSE:TM) is the world’s biggest automaker, churning out close to 10 million vehicles a year. Now, the Japanese company is planning to electrify its entire fleet. Toyota, which is already one of the top producers of gas-electric hybrid vehicles, has announced plans for a full lineup of electric vehicles and the batteries to power them. The company’s EV ambitions have driven TM stock to a 37% gain so far in 2024.
Toyota aims to achieve sales of 1.5 million electric vehicles per year by 2026 and sell 3.5 million battery-powered vehicles annually by 2030. The company is also developing a method for mass-producing solid-state batteries for electric vehicles and aims to commercialize the technology by 2028. The automaker has kicked its EV program into overdrive ever since new CEO Koji Sato took the helm of the company in April 2023.
Rivian Automotive (RIVN)
Things sure can change quickly. Shares of Rivian Automotive (NASDAQ:RIVN) just jumped 13% higher after the company unveiled three new electric vehicles and announced $2.25 billion in cost savings related to a pause in construction at one of its plants in Georgia. The new line of EVs from Rivian will also be more competitively priced, with prices on some models as low as $45,000.
The announcements appear to be extremely well-received by analysts and investors and are helping the stock reverse the downward spiral it had been in for several years. Despite the 13% gain, RIVN stock is still down 40% this year, bringing its loss from going public in November 2021 to 90%. However, a buy-the-dip opportunity might form if Rivian’s turnaround proves legitimate and long-lasting.
On the date of publication, Joel Baglole 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.