The 3 Most Undervalued EV Stocks to Buy in April 2024

Industry Overview - The electric vehicle (EV) industry is facing significant challenges, with valuations declining as investors question long-term pricing and competition [1] - Tesla, a leader in the EV market, is experiencing price cuts and profit slumps due to tougher economic conditions [1] - Investor interest is shifting towards more promising opportunities in the AI sector, putting additional pressure on EV stocks [1] Niu Technologies - Niu Technologies designs, manufactures, and sells electric motorcycles and scooters, primarily in China, and also offers spare parts and branded apparel [2] - The company is expected to generate revenues of approximately $470 million in 2024, with analysts predicting a profit of $0.20 per share, resulting in an 8.5 times P/E ratio [3] - Earnings are projected to increase by 50% in the following year, potentially lowering the P/E ratio to less than six times estimated 2025 earnings [3] Toyota Motor - Toyota's North American division reported a 22% increase in overall sales, with electrified vehicle sales soaring by 61% year-over-year in March 2024 [5] - The company sold 78,157 electric vehicles in March, accounting for 36% of its total sales, indicating a significant shift towards EVs [5] - Toyota maintains strong profitability, trading at less than 11 times forward earnings, supported by its size, brand strength, and international distribution [6] Sociedad Química y Minera de Chile (SQM) - SQM is positioned to benefit from the long-term growth of the electric vehicle market, despite current downtrends affecting lithium mining firms [7] - The company has access to large, low-cost lithium reserves in Chile and is one of the dominant players in the global lithium market [8] - Even with declining profits, SQM's shares are trading for less than 10 times forward earnings, and the company has a strong history of paying dividends [8]