Possibly the best two undervalued EV stocks to buy in 2024

EV stocks have declined in the market this year, especially compared to their counterparts in sectors like computing and artificial intelligence.

The current financial state of the global economy and instability in the raw materials market are major reasons for this.

However, the demand for clean energy is high, so EV stocks could rebound sooner rather than later.

• EV stocks are struggling in the market due to several factors, including government overspending post-pandemic and instability in the raw materials market.
• Tesla is a giant in the electric vehicle industry and has one of the largest market shares in this growing industry.
• Li Auto is an emerging key player in China known for massive growth and aggressive retail expansion – impressive features that could influence price action in the event of a rebound.

The argument for clean energy and a carbon-neutral footprint is more mainstream than ever, so it is only a matter of time before EV stocks record a rebound. Joel Lim, a financial analyst at Trading.biz, has identified the two best undervalued EV stocks to buy for massive rewards once the market corrects.

If you want to solidify your position in the EV market before the rebound occurs, you should buy Tesla and Li Auto as soon as possible.

Tesla (TSLA)

Tesla is the biggest electric vehicle company in the world and has one of the biggest market shares in the EV industry. Towards the tail end of last year, the company released its highly anticipated cyber truck vehicle, which was well-received by the public.

So much so that officials have confirmed a backlog for cyber truck orders. Once mass deliveries begin to roll out, we can expect an upside in revenue and subsequent price movement in the market.

The company has also announced plans to launch another flagship electric vehicle with impressive features, such as a range of 620 miles and improved speeds. Joel Lim notes that “even though the EV industry is experiencing a struggle, Tesla is showing no signs of slowing down and is doubling down on efforts to capture mind share and market share.”

Li Auto (LI)

Li Auto is one of the EV giants in China’s new electric vehicle market. Even with the current state of the global EV industry, Li Auto recorded an impressive revenue of $14.6 billion last year. It also delivered an impressive 376,000 vehicles last year and has announced plans to 2x that number this year. Li Auto claims they will provide a total of 800,000 vehicles this year.

Following the recent launch of a new vehicle model called LI MEGA alongside a 2024 version of its previous models, those plans are already underway. With a new flagship product on the market, Li Auto will likely record impressive delivery growth in the subsequent quarters of the year.

Joel Lim notes, “Li Auto’s ambition is unmatched, which is evident from their ambitious claim to deliver 800,000 vehicles this year. They will also likely invest in new retail outlets to support the delivery of their vehicles across the globe.”