Electric vehicles (EVs) are the future, but finding the right stocks to invest in can be challenging. While many new companies are entering the EV market, only a few have the potential to deliver significant returns for investors. The competition is fierce, with established giants like BYD and Tesla dominating the market. However, there are still undervalued growth stocks worth considering. Here are three EV stocks that could provide substantial returns over the long term.
Li Auto
Li Auto (NASDAQ:LI) is a pure-play EV startup that stands out for its track record and financial profile. The company has already delivered over 86,000 vehicles and is on track to double its sales year-over-year. Unlike many other startups, Li Auto is already profitable and focuses on large, higher-priced electric SUV models tailored for the Chinese market. With revenue expected to climb from $16 billion this year to nearly $66 billion in 2032, Li Auto has significant growth potential. Despite this, the stock is trading at just 2-times 2023 sales, presenting a great opportunity for investors.
ChargePoint
ChargePoint (NYSE:CHPT) is an EV infrastructure stock that has both pros and cons. While the company has faced share dilution and mounting losses, it has a massive charging network and a first-mover advantage. As governments worldwide invest billions of dollars in new charging stations, ChargePoint is well-positioned to capitalize on this opportunity. Although competition from Tesla’s charging network is a concern, ChargePoint’s primary growth driver is expected to be Europe. The stock currently trades at just 0.2-times 2032 sales, making it an attractive investment with significant upside potential.
Aehr Test Systems
Aehr Test Systems (NASDAQ:AEHR) offers a different approach to investing in the EV boom. As a semiconductor equipment supplier, Aehr provides vital test and burn-in equipment used in producing silicon carbide chips, which are integral to EVs and charging infrastructure. The company has reported record revenues and has seen strong customer momentum. With the surging demand for silicon carbide in various industries, Aehr’s addressable market is expanding. The stock is trading at just 12-times 2025 earnings and is expected to experience significant growth in the coming years.
These three EV stocks have the potential to deliver substantial returns for investors. Li Auto, ChargePoint, and Aehr Test Systems offer different opportunities within the EV market, from pure-play EV manufacturing to infrastructure and semiconductor equipment. While risks exist, such as competition and customer concentration, the long-term growth prospects make these stocks worth considering.
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