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Investing Picks: 3 Budget-Friendly EV Stocks Worth a Second Glance

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	Investing Picks: 3 Budget-Friendly EV Stocks Worth a Second Glance
Cheap EV Stocks to Buy - 3 Cheap EV Stocks to Buy During the Market Slump

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The electric vehicle (EV) realm buzzes with life, as titans and startups engage in a fierce arm-wrestling for supremacy. Yet, what does it mean when we talk about affordable EV stocks to nab? Often, cheap prices don’t whisper the whole story about a company’s future trajectory. 

Over the past year, the global EV landscape braked its meteoric rise, with interest slowing amidst rising interest rates. Unluckily, a few EV fledglings met a watery grave, unable to bob alongside the big fish. Even so, the EV sector anticipates an unprecedented growth spurt unfolding over the next few decades. 

Now, let’s unearth the cream of the crop – three bargain EV stocks worth eyeing in 2024!

Ferrari NV (RACE)

Ferarri car on the streets of France.

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Ferrari NV (NYSE:RACE) doesn’t leap to mind when pondering budget-friendly EV stocks. Nonetheless, the iconic prancing horse isn’t blind to the shifting auto panorama. Renowned for its potent gasoline engines and heart-racing drives, Ferrari recently unveiled plans to debut its inaugural all-electric supercar in 2025.

Investors are all ears about the firm’s future, basking in strong year-over-year (YOY) growth for several years running. Ferrari’s pivot to EVs arrives at a propitious juncture, capitalizing on the gradual upswing in consumer favoritism. During FY23, management triumphantly steered the ship to another year of record performance, with revenues climbing 17% YOY to EUR 5.97 billion. Notably, net earnings surged 34% YOY to EUR 1.25 billion, marking EUR 6.90 per share. This watershed moment saw the company’s yearly net profit cross the EUR 1 billion mark for the first time. Armed with a robust order backlog extending to 2026, Ferrari’s future in the EV sphere gleams brighter than the midday sun.

Tesla (TSLA)

Tesla (TSLA) on phone screen stock image.

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Tesla (NASDAQ:TSLA) towers as the unrivaled champ in the global EV arena. Despite TSLA stock weathering tempestuous seas of volatility, the Elon Musk-led trailblazer harbors indisputable plans to forge ahead in innovation and scale-up production. This resolve comes even as the company braces for a potential decline in EV thirst. 

Tesla anticipates a dip in deliveries for the 2024 financial year, coupled with an ominous prophesy of diminishing vehicle gross margins. These portents might have churned investors’ stomachs in the short term, yet the long-run vista stands unwavering. Bolstered by sundry growth catalysts spanning the next decade, such as the amplification of Model 3, Model Y, and Cybertruck lines, coupled with a burgeoning energy storage facet and the introduced FDS V12, Tesla finds itself propped on the bargain side with a historical P/E ratio of 39. This earmarks Tesla as one of the prime cut-rate EV stocks to swipe up presently.

ON Semiconductor (ON)

The Rise of ON Semiconductor: Driving Towards Future Growth in the EV Market

AI. Circuit board. Technology background. Central Computer Processors CPU concept. Motherboard digital chip. Tech science background. Integrated communication processor. 3D illustration representing semiconductor stocks. Semiconductors Stocks to Sell

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ON Semiconductor (NASDAQ:ON), a key player in power and signal management semiconductors, serves the automotive and energy storage sectors. Despite facing a slowdown in electric vehicle (EV) demand over the past year, the company showcased robust bottom-line growth in the 2023 fiscal year.

The Road Ahead for ON Semiconductor

The future looks promising for ON Semiconductor with the burgeoning demand for EV components. As the automotive industry pivots towards SiC modules, ON Semiconductor stands ready with a diverse array of solutions. This includes battery management chips, SiC MOSFETs, gate drivers, and sense amplifiers. Recently, the company finalized the expansion of its SiC production facility in Bucheon, South Korea. Anticipated to generate over 1,000 employment opportunities in the next 3 years, the facility aims to churn out up to 1 million SiC wafers annually. At a modest P/E ratio of just 15, ON Semiconductor warrants careful observation in 2024.

On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles, a seasoned writer at InvestorPlace.com, brings over seven years of financial market investment experience.