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3 Top-Ranked Automakers to Ride the EV Landscape in 2024
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Electric vehicle (EV) market growth is one of the most fascinating stories being told over the last several years. Global electric car sales in 2021 more than doubled from 2020. In 2022, sales topped the 10-million-unit mark. The escalating adoption of EVs spurred significant investments from automakers, which acted as a catalyst in the evolution of the EV market.
Industry players are strategically reshaping their business models to align with the electrified future. EV king Tesla (TSLA - Free Report) stands out as the forefront runner in zero-emission transportation, with its Model 3 and Y gaining widespread popularity and robust sales. However, apart from Tesla, there are many other auto companies capitalizing on the soaring demand for green vehicles by notching up their EV game.
Legacy automakers, dedicated EV manufacturers and innovative startups are actively contributing to the development of green vehicles, intensifying the competition for EV market dominance in the coming years. To reap the benefits of e-mobility, consider investing in companies such as Toyota (TM - Free Report) , Stellantis (STLA - Free Report) and NIO Inc. (NIO - Free Report) .
Shining EV Prospects
Technological advancements, stringent emissions targets, and the growing commercial viability of green vehicles in terms of both affordability and charging infrastructure are boosting the environment-friendly EV market.Government regulations worldwide are propelling EV sales, with ambitious goals like the European Commission's aim to eliminate new petrol and diesel cars by 2035 and China's plan for all new vehicles to be "eco-friendly" by the same year.
Japan plans to cease gasoline car sales by mid-2030s. California pledges to ban internal combustion engine cars by 2035, selling only electric cars and trucks by 2035 and 2045, respectively. Among the most aggressive, Norway is targeting 100% EV sales for 2025. These bold EV targets present opportunities for automakers.
The International Energy Agency predicts 14 million EV sales by the end of 2023, marking a 35% year-on-year increase. Canalys research reveals that global EV sales reached 6.2 million units in the first half of 2023, constituting 16% of the global light vehicle market, a notable increase from the first half of 2022. Canalys estimates that EVs will comprise 18% of the total market in 2023, with global sales exceeding 14 million units, a 39% increase from 2022.
EV-Volumes.com anticipates global EV sales, including battery-electric vehicles (BEVs) and plug-in hybrids, to reach 14.1 million units in 2023, implying 34% growth from 2022. The trajectory suggests a tripling of global EV sales from 10.5 million in 2022 to over 31 million in 2027, with expectations to more than double to over 74.5 million units in 2035.
The EV market is poised for substantial expansion, offering compelling opportunities for investors in the years to come.
Tap the Supercharged Space With These Stocks
Toyota, a household name in the automotive world, is making a strong push into the EV market. Known for its diverse brand portfolio, including Toyota, Lexus, and Scion, the company is well-positioned for growth. Toyota's approach to electrification encompasses a wide range of technologies, including electric and fuel-cell vehicles.
The Japanese giant's commitment to the EV market is evident in its impressive targets. By 2025, Toyota aims for 40% of its global sales to come from EVs, increasing to 70% by 2030. This ambitious goal is backed by a substantial investment of ¥4 trillion ($35 billion) to develop a lineup of 30 BEVs by 2030. Additionally, Toyota plans to sell 3.5 million BEVs annually by 2030, complemented by investments in other electrified vehicles and battery development.
The Zacks Consensus Estimate for Toyota's fiscal 2024 sales and earnings per share (EPS) indicates year-over-year growth of 11% and 45.4%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by $2.37 and 13 cents, respectively, in the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
The merger of Fiat Chrysler and PSA Group birthed Stellantis, an Italian-American powerhouse in the automotive industry.Stellantis’ Dare Forward 2030 strategy marks a significant leap toward a fully electric lineup. The company targets 100% of passenger car BEV sales in Europe and 50% in the United States by 2030. With plans to introduce 75 BEV models and sell five million BEVs annually, Stellantis is on a path to revolutionize its offerings.
Stellantis’ commitment is further underscored by its plan to invest €30 billion in electrification technology by mid-decade. This investment will contribute to halving the company's carbon footprint by 2030 and achieving carbon neutrality by 2038. If Stellantis succeeds in achieving its sales target as outlined in the Dare Forward plan, it has a higher possibility of doubling its revenues by 2030 compared to the start of the decade. It will also be able to maintain double-digit adjusted operating margins throughout the decade and become number one in providing exceptional products and services in every market by 2030.
The Zacks Consensus Estimate for STLA’s 2023 sales and EPS implies year-over-year growth of 12.3% and 11.3%, respectively. The earnings estimate for 2023 and 2024 has been revised upward by 3 cents and 16 cents, respectively, in the past seven days. The stock currently carries a Zacks Rank #2.
NIO, a China-based EV company, is banking on its robust relationship with the local government and an innovative lineup, featuring models like ES6, ES8, EC6, EL7, ET5, ET7, and EC7. The recent commencement of deliveries for the all-new EC6 underscores its commitment to product innovation. NIO's strategic focus on core technologies, in-house manufacturing for cost reduction, and an emphasis on product development and service expansion are set to boost prospects. Encouragingly, NIO's global expansion plan recently got a $2.2 billion boost from Abu Dhabi. The purchase of two JAC plants is expected to reduce NIO's production costs by approximately 10%.
While NIO is yet to turn profitable, the company seems to be moving in the right direction. The upcoming year holds promise, with the full potential of NIO's second-generation products set to be unleashed, further solidifying its competitive edge. Increasing average selling prices and growing sales signal a positive trajectory. With the worst seemingly behind, NIO is poised for a promising 2024 backed by factors like cash boost, delivery upticks, model launches and an improvement in margins.
The Zacks Consensus Estimate for NIO’s revenues and earnings implies a year-over-year improvement of 52% and 31%, respectively. The consensus mark for 2023 and 2024 bottom lines has narrowed from a loss of $1.79 per share and $1.26 per share to $1.70 per share and $1.18 per share, respectively, in the past 30 days. NIO currently carries a Zacks Rank #2.
Image: Bigstock
3 Top-Ranked Automakers to Ride the EV Landscape in 2024
Electric vehicle (EV) market growth is one of the most fascinating stories being told over the last several years. Global electric car sales in 2021 more than doubled from 2020. In 2022, sales topped the 10-million-unit mark. The escalating adoption of EVs spurred significant investments from automakers, which acted as a catalyst in the evolution of the EV market.
Industry players are strategically reshaping their business models to align with the electrified future. EV king Tesla (TSLA - Free Report) stands out as the forefront runner in zero-emission transportation, with its Model 3 and Y gaining widespread popularity and robust sales. However, apart from Tesla, there are many other auto companies capitalizing on the soaring demand for green vehicles by notching up their EV game.
Legacy automakers, dedicated EV manufacturers and innovative startups are actively contributing to the development of green vehicles, intensifying the competition for EV market dominance in the coming years. To reap the benefits of e-mobility, consider investing in companies such as Toyota (TM - Free Report) , Stellantis (STLA - Free Report) and NIO Inc. (NIO - Free Report) .
Shining EV Prospects
Technological advancements, stringent emissions targets, and the growing commercial viability of green vehicles in terms of both affordability and charging infrastructure are boosting the environment-friendly EV market.Government regulations worldwide are propelling EV sales, with ambitious goals like the European Commission's aim to eliminate new petrol and diesel cars by 2035 and China's plan for all new vehicles to be "eco-friendly" by the same year.
Japan plans to cease gasoline car sales by mid-2030s. California pledges to ban internal combustion engine cars by 2035, selling only electric cars and trucks by 2035 and 2045, respectively. Among the most aggressive, Norway is targeting 100% EV sales for 2025. These bold EV targets present opportunities for automakers.
The International Energy Agency predicts 14 million EV sales by the end of 2023, marking a 35% year-on-year increase. Canalys research reveals that global EV sales reached 6.2 million units in the first half of 2023, constituting 16% of the global light vehicle market, a notable increase from the first half of 2022. Canalys estimates that EVs will comprise 18% of the total market in 2023, with global sales exceeding 14 million units, a 39% increase from 2022.
EV-Volumes.com anticipates global EV sales, including battery-electric vehicles (BEVs) and plug-in hybrids, to reach 14.1 million units in 2023, implying 34% growth from 2022. The trajectory suggests a tripling of global EV sales from 10.5 million in 2022 to over 31 million in 2027, with expectations to more than double to over 74.5 million units in 2035.
The EV market is poised for substantial expansion, offering compelling opportunities for investors in the years to come.
Tap the Supercharged Space With These Stocks
Toyota, a household name in the automotive world, is making a strong push into the EV market. Known for its diverse brand portfolio, including Toyota, Lexus, and Scion, the company is well-positioned for growth. Toyota's approach to electrification encompasses a wide range of technologies, including electric and fuel-cell vehicles.
The Japanese giant's commitment to the EV market is evident in its impressive targets. By 2025, Toyota aims for 40% of its global sales to come from EVs, increasing to 70% by 2030. This ambitious goal is backed by a substantial investment of ¥4 trillion ($35 billion) to develop a lineup of 30 BEVs by 2030. Additionally, Toyota plans to sell 3.5 million BEVs annually by 2030, complemented by investments in other electrified vehicles and battery development.
The Zacks Consensus Estimate for Toyota's fiscal 2024 sales and earnings per share (EPS) indicates year-over-year growth of 11% and 45.4%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by $2.37 and 13 cents, respectively, in the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
The merger of Fiat Chrysler and PSA Group birthed Stellantis, an Italian-American powerhouse in the automotive industry.Stellantis’ Dare Forward 2030 strategy marks a significant leap toward a fully electric lineup. The company targets 100% of passenger car BEV sales in Europe and 50% in the United States by 2030. With plans to introduce 75 BEV models and sell five million BEVs annually, Stellantis is on a path to revolutionize its offerings.
Stellantis’ commitment is further underscored by its plan to invest €30 billion in electrification technology by mid-decade. This investment will contribute to halving the company's carbon footprint by 2030 and achieving carbon neutrality by 2038. If Stellantis succeeds in achieving its sales target as outlined in the Dare Forward plan, it has a higher possibility of doubling its revenues by 2030 compared to the start of the decade. It will also be able to maintain double-digit adjusted operating margins throughout the decade and become number one in providing exceptional products and services in every market by 2030.
The Zacks Consensus Estimate for STLA’s 2023 sales and EPS implies year-over-year growth of 12.3% and 11.3%, respectively. The earnings estimate for 2023 and 2024 has been revised upward by 3 cents and 16 cents, respectively, in the past seven days. The stock currently carries a Zacks Rank #2.
NIO, a China-based EV company, is banking on its robust relationship with the local government and an innovative lineup, featuring models like ES6, ES8, EC6, EL7, ET5, ET7, and EC7. The recent commencement of deliveries for the all-new EC6 underscores its commitment to product innovation. NIO's strategic focus on core technologies, in-house manufacturing for cost reduction, and an emphasis on product development and service expansion are set to boost prospects. Encouragingly, NIO's global expansion plan recently got a $2.2 billion boost from Abu Dhabi. The purchase of two JAC plants is expected to reduce NIO's production costs by approximately 10%.
While NIO is yet to turn profitable, the company seems to be moving in the right direction. The upcoming year holds promise, with the full potential of NIO's second-generation products set to be unleashed, further solidifying its competitive edge. Increasing average selling prices and growing sales signal a positive trajectory. With the worst seemingly behind, NIO is poised for a promising 2024 backed by factors like cash boost, delivery upticks, model launches and an improvement in margins.
The Zacks Consensus Estimate for NIO’s revenues and earnings implies a year-over-year improvement of 52% and 31%, respectively. The consensus mark for 2023 and 2024 bottom lines has narrowed from a loss of $1.79 per share and $1.26 per share to $1.70 per share and $1.18 per share, respectively, in the past 30 days. NIO currently carries a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.