Stocks to buy

Electric Dreams: 3 Picks Powering the EV Movement This Month

EV shares are beginning to win hearts once again in 2024. The S&P 500 index performed well in February in particular, with its total return figure increasing to 7.11% across the first two months of the year. It endorses the 2023 result by building on last year’s 24%. As long as the central bank is stable regarding interest rates, the indices will likely remain upbeat. Meanwhile, adding to these tailwinds, the EV industry is revolutionizing its offerings across several sectors, creating a favorable environment for EV stocks.

The global EV market is forecasted to increase by 27.1% in 2024, reaching 17.5 million units, according to an analysis from Canalys. The growth is thanks to continuous adoption in Greater China, Europe, and North America.

With this robust backdrop, let’s look at three quality EV stocks, which trade at discounts and boast solid EV initiatives.

Top EV Stocks: General Motors (GM)

Source: Linda Parton /

General Motors (NYSE:GM) is a prime pick among EV stocks thanks to its wide diversification and attractive valuation. The stock is up 21% in the last six months but still trades at a forward P/E of 4.4, which is very attractive in its peer group.

Overall, GM plans to spend $35 billion on EV and AV vehicle development between 2020 and 2025.

Among its EV offerings, the 2024 Chevy Equinox EV will attract attention to GM’s brand and stock this year. With a price tag of around $30,000, the Equinox EV is an affordable addition to the EV sphere. GM’s Ramos Arizpe facility in Mexico is producing the vehicle​​​​​​.

GM is also reintroducing plug-in hybrid options as the focus returns to EVs. In addition, the automaker is partnering with Tesla (NASDAQ:TSLA) to give GM EV owners access to Tesla Superchargers. As a result, GM customers get access to 12,000 Tesla Superchargers.

Finally, diversification plays a key role in further strengthening GM’s investment thesis. Unlike several pure-play EV stocks, GM is not reliant on EVs alone for its success.

Honda Motor (HMC)

Source: Jonathan Weiss /

“Thin, Light, and Wise” is the slogan Honda Motor Co (NYSE:HMC) used to reveal its “Honda 0 Series” at CES 2024. The series is developed on a dedicated EV platform and emphasizes five core features.

The move is the latest in a long series from Honda Motor, which is setting aside $40 billion through 2030 to ensure hybrid and fully electric vehicles represent 40% of its sales by the end of the decade.

The capital commitment is a major one and will likely lead to a number of new models. One such example is the Prologue SUV, set for a spring launch. Honda is also ramping up production in North America, where it sold 1.3 million units last year. With a class-leading 296-mile EPA range rating, it will grab eyeballs and headlines when it makes its debut.

Honda is also active on the battery side of EV production. The company is working with GM for Ultium battery supplies and is pursuing a joint venture to construct an EV battery plant in Ohio with LG Energy Solution.

Like General Motors, EVs are just one part of Honda’s puzzle. One-quarter of total Honda brand sales come from EVs. This means that GM is a well-diversified enterprise that is hedged against any potential downturn in its EV business.

With a trailing 12-month P/E ratio of 8.7, the stock outperforms 75.2% of its peers. The numbers make it a steal for those looking for EV stocks.

Nio (NIO)

Source: Robert Way /

Nio (NYSE:NIO) reported a 25% year-on-year increase in the number of cars delivered in Q4 ’23, but the stock is still down 43.8% on a six-month basis. What gives?

NIO’s stock is declining owing to broad weakness in the Chinese market and lower-than-expected quarterly results.

However, CYVN Holdings, owned primarily by the Abu Dhabi government, recently decided to inject $2.2 billion into the company.

The funds will be useful when the EV manufacturer decides to introduce Alps, a new mass-market brand competing in the $30,000 to $50,000 price range. The company wants to strengthen its already stellar lineup and further establish itself as a cost-effective business.

Nio’s second-generation ES6, for instance, features the NIO Adam supercomputer, one of the most advanced in the industry for autonomous driving technologies​​. The ET7 model has a pioneering 150 kWh battery, enabling it to go about 650 miles on a single charge. The new flagship model, the ET9, features a 600 kW charging feature, and will target the premium market.

TipRanks data bestows a “Moderate Buy” rating on NIO stock, with a 15% upside potential, which is juicy for those seeking quality EV stocks.

On the publication date, Faizan Farooque did not hold (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 Publishing Guidelines.

Faizan Farooque is a contributing author for and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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