These 3 EV Stocks Are Set to Soar in 2024 and Beyond

Core Viewpoint - Rivian, Li Auto, and Polestar are identified as potential contrarian plays in the electric vehicle (EV) market, which has faced significant challenges following a buying frenzy in 2021 and subsequent sell-offs due to rising interest rates and market slowdowns [1] Rivian - Rivian's stock has decreased nearly 90% since its IPO in November 2021, with production falling short of initial targets due to supply chain issues [2] - In 2023, Rivian produced 57,232 vehicles and expects to produce about 57,000 in 2024, facing macroeconomic challenges and competition [2][3] - Analysts project a compound annual growth rate (CAGR) of 39% for Rivian's revenue from 2023 to 2026, driven by the rollout of R2 SUVs and fulfilling Amazon's order for 100,000 vans [2] Li Auto - Li Auto, a Chinese automaker, has seen significant delivery growth, with a 182% increase to 376,030 vehicles in 2023 [4][5] - The company turned profitable in 2023, with a projected revenue CAGR of 28% from 2023 to 2026 and GAAP earnings CAGR of 16% [5] - Li Auto's stock trades at 18 times forward earnings and less than 1 times this year's sales, with potential for recovery if U.S.-China tensions ease [5] Polestar - Polestar's stock has declined over 90% since its SPAC merger in June 2022, facing supply chain constraints and missed growth targets [6] - Production increased by 80% in 2022 but only 6% to 54,600 vehicles in 2023, falling short of pre-merger targets [6] - Analysts expect Polestar's revenue to grow at a CAGR of 87% from 2023 to 2025, indicating potential for significant stock appreciation if operational issues are resolved [7]