Outpacing the Giant: 7 EV Stocks Zooming Past Tesla

The EV sector has quickly evolved into a hotbed of investment opportunities, with EV stocks frequently outperforming market expectations. Tesla (NASDAQ: TSLA ) has long been synonymous with EV innovation, but the competition in the market has been intensifying impressively. These selections promise not only innovation but also a substantial upside, positioning themselves as compelling alternatives to the EV trailblazer.

Moreover, with the likely rate cuts expected in 2024, growth stocks in the EV sphere should offer a robust upside over the long term. BYD (BYDDF) BYD (OTCMKTS: BYDDF ), a Chinese electric vehicle powerhouse, continues to be a dominant player in the global EV race, positioning itself as a major challenger to Tesla.

It has established itself as the world’s second largest battery maker and with a diverse product line it boasts an incredibly attractive position. Moreover, BYD’s edge is not just in its product variety – its global footprint is equally significant. Setting itself apart, BYD emphasizes affordability without compromising quality.

Additionally, its vehicles are priced competitively, offering budget friendly alternatives to Tesla’s lineup. This pricing strategy is critical for BYD’s growing appeal, especially as the EV market expands and at a rapid pace. In 2023, BYD reported selling an impressive 3.02 million vehicles , a 61.9% increase year over year.

Significantly, BYD’s international sales in December soared, more than tripling the previous year’s numbers. This achievement underscores BYD’s enviable global presence and its potential to thrive in the competitive EV landscape. Li Auto (LI) Li Auto (NASDAQ: LI ) is another top Chinese company that has effectively carved out a niche in the EV market with its unique electric SUVs offering both combustion and electric driving capabilities.

Recent results have been amazing to say the least. In December, the company achieved a noteworthy milestone , delivering 50,353 vehicles, marking its ninth consecutive month of record breaking sales. This achievement not only demonstrates the company’s powerful appeal but also underscores its operational excellence.

This surge brought its fourth quarter deliveries to an impressive 131,805, a 184.6% bump compared to the previous year. The fact that Li Auto consistently shattered its monthly sales records for nine straight months speaks volumes over its market traction. This remarkable growth trajectory positions Li Auto as a strong player in the EV market.

It’s an attractive long term option for investors seeking to capitalize on the growing demand for EVs. Global X Autonomous & Electric Vehicles ETF (DRIV) Global X Autonomous & Electric Vehicles ETF (NASDAQ: DRIV ) offers an appealing investment avenue into the EV and autonomous technology sectors.

With a moderate expense ratio of 0.7%, DRIV invests in companies at the forefront of autonomous vehicles, EVs and critical components like lithium and cobalt. Its portfolio includes major companies, such as Alphabet (NASDAQ: GOOG , NASDAQ: GOOGL ) and Nvidia (NASDAQ: NVDA ) blending established tech giants with emerging EV market players.

Despite a recent dip of 1.8% in value and a 7% decrease over six months, analysts from TipRanks project an encouraging 20% upside from current prices. This outlook is anchored in the growth and adoption of EVs and autonomous vehicle technology worldwide. Hence, for investors seeking exposure to this dynamic sector while maintaining a balanced risk profile, the ETF stands out as a diversified and potentially rewarding investment choice.

Albemarle (ALB) Albemarle (NYSE: ALB ) is the world’s leading lithium producer and a stock that usually makes the list of top battery EV stocks. Despite the recent dip in lithium prices, imperative for EV battery production, Albemarle stands out with its ability to effectively navigate commodity market fluctuations.

Expert predictions of a looming lithium shortage by 2025 have bolstered the outlook for ALB stock, suggesting a potential upswing this year. In the face of recent challenges, Albemarle has projected a robust 30% to 35% increase in sales for 2023, along with a $700 million in operating cash flow forecast, showcasing its readiness to surge ahead even with existing margin pressures.

As the market anticipates a recovery in lithium prices, Albemarle is positioned remarkably well to efficiently capitalize on this trend, poised to deliver robust long term growth. Nio (NIO) Nio (NYSE: NIO ) is another top Chinese EV manufacturer that recently received a major boost, propelling its share price upward by double digit margins.

This surge in market confidence is attributed to a substantial $2.2 billion investment from Abu Dhabi based CYVN Holdings. While some experts are bullish on the brand’s potential, citing its approach and market penetration, others remain skeptical. In terms of performance, NIO’s recent vehicle delivery statistics underscore its powerful market presence.

In December 2023, the company delivered 18,012 vehicles, marking a 13.9% bump year over year. This impressive figure includes 12,048 premium smart electric SUVs and 5,964 premium smart electric sedans, reflecting the brand’s strength in both segments of the EV market. Furthermore, NIO’s performance in the fourth quarter of 2023 was noteworthy, with the delivery of 50,045 vehicles representing a 25% increase compared to the prior year.

While both the bullish and bearish cases for NIO present compelling arguments, investors with a tolerance for risk and a long term perspective may find significant long term reward in this innovative and rapidly evolving EV company. Lithium Americas (LAC) Lithium Americas (NYSE: LAC ) has the potential to be a multi bagger investment and remains poised for substantial long term growth in the lithium market.

The company’s primary asset, the Thacker Pass project in the United States, is the biggest known lithium resource in the country. This project alone has an impressive after tax net present value of $5.7 billion, promising an average annual EBITDA of $1.1 billion over a 40 year mine life. The company’s prospects are further bolstered by a massive investment of $650 million from General Motors (NYSE: GM ), including a 100% offtake agreement for the project’s first phase production.

With these strong prospects and strategic relationships, Lithium Americas stands on the brink of a significant market revaluation, making it an attractive option for investors eyeing long term gains among EV stocks. Li Cycle Holdings (LICY) Li Cycle Holdings (NYSE: LICY ), a leading North American lithium ion battery recycler, continues to take significant strides in the global recycling sphere.

The company’s recent inauguration of its first processing line in Germany, with another slated for later in the year, marks a pivotal step in its expansion. Each primary line at this facility can recycle up to 10,000 tonnes of battery material annually. With plans to add an additional 10,000 tons, the facility is on track to reach an impressive 30,000 tons per year.

Li Cycle’s vision extends beyond the Europe region, with a vigorous network spanning North America and Asia. Furthermore, in a strong boost to its operations, the U.S. Department of Energy has conditionally agreed to extend a $375 million loan to Li Cycle to finance its North American lithium ion battery (LIB) resource recovery facility.

For investors optimistic about the future of recycling and sustainable resource management, these temporary hurdles present an attractive buying opportunity. As the demand for battery materials grows, Li Cycle’s strategic positioning and expanding capacity make it a compelling choice in EV stocks.

On the date of publication, Muslim Farooque 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.