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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)
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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)
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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.
