Electric vehicle manufacturers have had a bumpy ride since the start of 2022. China’s lockdowns, supply chain problems and negative investor sentiment led to a decline in production. This, and the shortage of semiconductors, dampened the industry’s progress. However, the EV industry remains one of the most attractive sectors today and is still in its growth phase.
A string of electric car companies are vying for consumers and this has driven up stock valuations. However, the current macroeconomic situation has caused more damage to EV stocks than expected and most of these companies are reporting far from profit, but they are a solid bet. They could become profitable in the coming years and may also become the future of the auto industry.
In the short term, stocks may experience some constraints, but even those are beginning to decline. The dip in EV stocks has created a great opportunity to take your chances. Here’s a look at the seven best electric vehicle stocks to invest in this month.
Best Electric Vehicle Stocks: Li Auto (LI)
Li Auto (NASDAQ:LI) looks promising at current levels. The stock is up 55% in June and has a lot to look forward to. The company launched its second model, L9 SUV in June, giving the stock a much-needed push. Deliveries also recovered strongly in June. The company supplied 13,024 EVs in the month, a significant increase from the dip in April. Turnover is also growing steadily.
Despite Li Auto reporting a loss, it appears to be on the right track and could report strong fundamentals this year. It beat analyst estimates of $70 million in revenue by reporting $1.51 billion in revenue. Even gross margins were much higher compared to the same quarter last year.
The company may have a tough quarter this year, but the long-term picture is nothing but promising. Lucid shows steady growth over time and revenue is expected to increase in the coming years.
Nioz (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 have an impact on inventory. NIO stocks once traded as high as $55, but today are close to $21. 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, an increase of no less than 60% on the previous year and an 84% increase on May deliveries. Nio is expected to report impressive quarterly results and the stock is a buy for that. The company remains unprofitable even today, but the long-term picture looks very impressive. It has made its debut in Europe and plans to expand there.
Despite the lockdowns in China and negative sentiment surrounding the stock over fears of delisting, Nio held up and is rising again. It has done significantly well to increase sales and deliveries each quarter. If Nio continues to report strong deliveries and stick to its expansion plans, it could show monstrous growth over 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 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 show impressive growth in the long run.
Investors who like to bet on potential may consider FSR stock a great buy. Now is a good time to take your position as the stock is trading below $10.
A well-known name in the industry, Ferrari (NYSE:breed) plans to launch its first EV supercar in 2025.
As the company prepares to join the EV companies after long resisting the shift, it’s an opportunity to pack the stock before it surges. Market sentiment around Ferrari has been very optimistic and the consensus on this remains very positive.
RACE stock is not EV stock right now, but it could be soon join the EV race† It currently only has plug-in hybrid cars, but that will change soon. The company plans to report 40% EV sales by 2030.
Ferrari’s earnings are rising steadily and the stock is trading at $191, significantly below its 52-week high of $278. Ferrari has premium customers and the company is doing well even in a crisis.
Lucid Group (LCID)
Lucide Group (NASDAQ:LCID) generates huge interest in his car with massive reservations. The company exceeded analyst expectations in its quarterly results, delivering 360 cars.
It is intended to make deliveries of 12K to 14K vehicles this year† It lowered the target of 20K due to the pandemic and supply chain disruptions. However, management remains confident that the target will be achieved.
LCID shares have taken a beating this year, falling 70% from its all-time high. The company is building a new production factory in Saudi Arabiahas 30,000 reservations and has a cash balance of $5 billion that can be used year-round for its production and expansion goals.
Even turning half of the reservations into actual sales can generate huge revenue for Lucid. The stock is currently trading at a discount and it is a great opportunity to add it to your portfolio.
Another popular share of the EV industry, XPeng (NYSE:XPEV) is a luxury EV maker that has impressed investors with solid delivery figures.
The company reported deliveries of 15,295 EVs for June, an increase of 131% over the same period last year. It delivered a total of 68,983 EVs in the first half of the year and I think there’s 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 phase. The supply chain disruptions could have reduced supply numbers, meaning we will see higher numbers in the coming quarters.
XPeng is also expanding across Europe and has opened Experience stores throughout the Netherlands and Denmark. XPEV stocks have fallen 34% in the past 6 months, but have recovered significantly in the past month. It is trading at USD 30, well below the 52-week high of USD 56.
Best Electric Vehicle Stocks: ChargePoint (CHPT)
What is an EV if you don’t have the means to charge it? No EV stock list can be complete without ChargePoint (NYSE:CHPT†
The largest stock of EV infrastructure holds more than 70% of the market in the Americas and is present throughout Europe. It saw a huge increase in revenues from the European market last year. It generates revenue from the sale of chargers, which are essential for EVs, and their demand has been constantly increasing.
The stock is down 30% in the past six months and is trading at $12 today, making it a solid buy. In addition to the chargers, it earns income from warranties and subscriptions that are also gaining popularity as the EV industry expands. CHPT stocks are expected to outperform over the long term.
At the date of publication, Vandita Jadeja had no (direct or indirect) positions in the securities referred to in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com’s publishing guidelines.