3 EV Stocks to Bet On for Market-Crushing Returns

Industry Overview - The global electric vehicle (EV) market is projected to see sales exceed 17 million units in 2024, representing over 20% of total car sales worldwide [1] - By 2035, electric vehicles are expected to account for approximately 55% of all light-duty vehicle sales, with 40% by 2030 [1] - China is the largest EV market, contributing to over 60% of global EV sales in 2023, and is expected to grow its electric car market from $319 billion to $398 billion by 2028 [1] Company Analysis: Li Auto (LI) - Li Auto delivered 47,774 vehicles in June 2024, marking a 46.7% year-over-year increase, with total second-quarter sales reaching 108,581 cars, a 25.5% increase from the previous year [3] - The company has delivered 822,345 vehicles to date, leading among China's new energy automakers, driven by the popularity of the Li L6 model [3] - Li Auto is collaborating with Nvidia to enhance its autonomous driving and AI capabilities, and despite a decline in stock due to delayed all-electric SUV deliveries, it presents an 81% upside potential [4] Company Analysis: XPeng (XPEV) - XPeng delivered 10,668 vehicles in June 2024, a 24% increase from the previous year, with total deliveries for the first half of the year at 52,028, up 26% year-over-year [5] - The company plans to expand its product range with around thirty new models over the next three years, including the P7+ sedan and the all-electric hatchback coupe Mona M03 [5][6] - XPeng is collaborating with Volkswagen to integrate MEB technology into its upcoming electric cars, and despite a 42% decline in stock, it has a price target suggesting a 43% upside [6] Company Analysis: Nio (NIO) - Nio shipped 21,209 electric cars in June 2024, achieving over 20,000 vehicle deliveries for two consecutive months, with Q2 2024 deliveries at 57,373, a 143% increase from the previous year [7] - The company plans to launch a low-cost electric SUV priced at $30,465 in September 2024, aimed at competing with Tesla's Model Y [7][8] - Nio's sub-brand Alps is starting trial production of its all-electric SUV DOM, targeting a more affordable market, and despite strong delivery numbers, Nio's stock is down 48%, indicating a 51% upside potential [8]