Best EV stocks to buy the dip in as the sell-off intensifies

EV stocks, in addition to Bitcoin miners, have been the worst performers in Wall Street this year as concerns about demand rise. All EV stocks, including the biggest ones like Tesla and Rivian have already plunged by double-digits this year. 

And most analysts believe that they will continue falling as they confront several issues like low demand, thinner margins, and Chinese saturation. Many EV companies are expected to raise capital this year. This article looks at some of the top EV stocks that you can buy the dip in this year.

Li Auto (NASDAQ: LI) is an EV company that most Americans have never heard about. Yet it is one of the biggest companies in the industry with a market cap of over $31 billion. It is a Chinese company that manufactures and selling thousands of cars every year. And as my colleague wrote on Tuesday, analysts at Deutsche Bank believe that the stock could jump by 50% this year.

The case for Li Auto is that it has the scale to boost its market share in the industry. For example, the company delivered over 35k vehicles in January, a 35% increase from the same period in 2023. It has now delivered over 664k vehicles and the management believes that it will deliver 800k vehicles this year. 

Therefore, while investing in Li Auto is still risky because of its Chinese roots, I believe that it has a room to bounce back in the coming years. Besides, it is one of the most profitable EV companies in China.

Rivian (NASDAQ: RIVN) stock price has crashed by more than 33% this year and by 23% in the past 12 months. The company’s market cap has plunged to $14.8 billion, a sad figure considering that it was valued at over $150 billion a few years ago.

The case for Rivian can be made. First, it is the most successful EV company in terms of trucks. It manufactured over 17,500 vehicles in the last quarter and sold 13,900 vehicles. For the year, the company made over 57k vehicles, higher than its guidance of 54k.

In addition to trucks, the company has a big business where it sells delivery trucks to Amazon and other retailers. Therefore, the company will likely benefit as incumbent companies like Ford and General Motors struggle. Ford’s lightning truck has not been selling well, forcing the company to slash production.

Fisker (NYSE: FSR) is a highly-shorted EV company with a risk/return. Its stock has plunged by over 89% in the past 12 months, benefiting short-sellers who now have a short interest of 27%. This short interest is lower than its YTD high of over 48%. 

On the positive side, Fisker has good and well-priced EVs. Unlike other companies, Fisker has an asset-light model where it outsources manufacturing to Magna. It has also sold thousands of vehicles, a few months after the manufacturing started. Also, most recently, the company received access to cash, removing the possibility that it will dilute investors.

Fisker has had a rough patch because of logistics issues since its vehicles are made in Austria. I believe that the company will overcome these challenges as it ramps up production. Therefore, there is a likelihood that the stock will bounce back later this year.

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