3 EV Stocks to Buy to Turn $1,000 Into $1 Million

Stocks to buy

The future is electric and the sooner we accept it, the better prepared we will be. The market for electric vehicles (EVs) has rapidly grown in the past few years, and despite the slowdown in 2022, the market has picked up better than anticipated this year. There is a strong acceleration in EV adoption but it will also depend on the government policies and the manufacturing companies. EV manufacturing companies could have their best years coming ahead and now is the time for investing in EV stocks. Whether you believe in the future of electric vehicles or not, investing in EV stocks will help turn $1,000 into $1 million. 

The electric vehicle landscape is rapidly changing, and new players are entering the market while some are unable to keep pace with the thriving industry. If you are thinking about investing in the EV industry, you need to look for companies that have proven themselves, and ones that have the necessary talent, tech and liquidity to be the best in this industry. Here are the top EV stocks to buy. 

Tesla (TSLA)

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Undoubtedly one of the best EV stocks to buy, Tesla (NASDAQ:TSLA) has ruled the industry for a few years now. Investors who have owned the stock in the past decade have taken home massive gains. TSLA stock is up 168% year to date and is trading at $290 today. The stock was at $108 in January and is inching closer to $300 presently. There are multiple reasons to own Tesla stock. One is its competitive advantage. When it comes to EVs and self-driving technology, nobody has been able to beat Tesla.

Considered a leader in the industry, the company is a solid brand that offers investors strong gross margins. It reported impressive delivery numbers, which is proof that consumers are willing to pay a premium for a luxury product. The company delivered 466,140 cars in the second quarter. It is planning to build a factory in India, which could be a strong move considering the population of the country. Tesla is known for offering the longest range in EVs and the company’s vehicles have some of the coolest features which customers love. 

Another reason to love this stock is its leadership and experience. The company has established itself in the market, and enjoys an early-mover advantage. Elon Musk does not shy away from innovation, and using the latest technology to improve the performance of the company’s EVs. The company has also generated a new source of revenue by offering its charging network to other EV companies. While it may not make a huge contribution to the total revenue, it will make a difference. The company is set to report quarterly results on soon which it might take the stock even higher. 

Ford Motor Company (F)

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Not a lot of people are a fan of Ford Motor Company (NYSE:F), but I believe in the company’s ability to scale production and inch higher. In the first quarter, the company reported net sales of $41.5 billion which was up 20% year over year, and the EPS was up 66% year over year. These numbers prove that a lot is coming up from the company. Ford’s EV division sold 12,000 units in the recent quarter, which was a drop from the previous quarter. However, its quarterly sales in the United states were up 9.9% resulting in 531,662 vehicles sold. The management is certain that they can hit the goal of 2 million annually by the end of 2026. It recently partnered with Tesla for the charging infrastructure, and Ford owners will now be able to charge their vehicles at Tesla’s charging stations. 

When we look at Ford, we must remember its position as one of the top automakers, and the company has the potential to become a big player in the EV space in the coming years. F stock is trading at $14 today and is moving closer to the 52-week high of $16. The stock is up 20% year to date, and I believe this upward momentum will continue. It also enjoys a dividend yield of 4.01% and has paid a quarterly dividend of $0.15.

Ford is a strong brand but a lot will depend on how it handles the competition in the EV space. However, if you believe in the future of EVs and understand the risks associated with the company, Ford can be a good buy. Citi has recently raised the price target of the stock to $17 with a buy rating. The company is set to report earnings soon. 

Li Auto (LI)

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Li Auto (NASDAQ:LI) is one of the high potential EV stocks that can help turn your $1,000 into a $1 million. While it may take time to see massive growth in the company, it is already on its way there. LI stock is trading at $38 today and is up 82% year to date. It has soared above 79% in the last six months. The company is planning to launch new models this year, and it has already surpassed this quarter’s production expectations.

It delivered 52,584 vehicles in the first quarter and 86,533 vehicles in the second quarter. The company had projected deliveries in the range of 76,000 to 80,000 vehicles for the quarter, but delivered more than that. This will also reflect in the top and bottom lines when the company reports results. For perspective, in the first quarter, the company reported a revenue of $2.74 billion, which is a 96% rise from the same quarter the previous year, and its gross profit hit $557.7 million, a 77% rise. 

Li Auto is well-placed in China, and is leading the market there. The current situation of the economy points to a more positive Chinese market and the demand for EVs could go higher. This will lead to a rise in sales and revenues for Li Auto. Looking at the company’s potential, LI stock looks undervalued to me. The automaker has a longer runway for growth and it offers a solid investment opportunity for investors looking to grow their money. 

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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