Contrary to the numerous mainstream reports that EV demand will be slowing down this year, the market is already showing solid signs of recovery. In China for instance, which is currently the world’s biggest EV market, EVs drove first-quarter sales growth, rising 31.8% to 2.09 million units, as automakers launched new models and cut prices.
In the US, the number of newly introduced EV options that can go 300 miles or more on a single charge, which is considered the threshold for a long-range vehicle, increased to 30 models at the beginning of 2024, representing a 500% increase in three years.
It is therefore no surprise that research firm Fastmarkets forecasts global EV sales growth will increase by 36% year-on-year in 2024, marking another year of consecutive double-digit growth rates. In other large emerging vehicle markets like India and Southeast Asia, the EV market has been gaining major traction thanks to increasing government support. Thailand and Malaysia both provide tax support for final EV purchases, while in the Philippines, as part of its push to develop the country’s EV sector, the government is looking to incentivize the manufacture of four million EV units in the next 10 years.
That means that although EV stocks are down right now, the long-term fundamentals of the broader sector remain strong, and now would be the perfect time to spot undervalued companies. And it won’t be only EV companies that will benefit from a rebound in demand; battery stocks will also benefit from the tailwinds of this trend. With that being said, here are four stocks that investors should consider adding to their watchlist as EV demand picks up again.
VivoPower International (NASDAQ:VVPR) is a sustainable energy solutions company that believes sustainability doesn’t need to be expensive. This is why it has taken a differentiated approach to getting into the EV market. Through its subsidiary, Tembo, the company provides conversion kits with all the parts required to convert a vehicle from an internal combustion engine to an EV.
Plug Power Inc. (NASDAQ:PLUG) is a global leader in hydrogen fuel-supply solutions and hydrogen applications for material handling, power generation, and e-mobility. The company recently announced that it signed a contract to provide a significant U.S. electric vehicle manufacturer with hydrogen infrastructure and fuel cell technology for its material handling fleet.
Enovix Corp. (NASDAQ:ENVX) develops high-performance batteries, leveraging its more than 626 technology patents and patent applications globally. The company recently announced it has been granted 15-year Pioneer Status from the Malaysian Investment Development Authority (MIDA) for manufacturing its batteries in its high-volume manufacturing facility by the name Fab2.
Microvast Holdings, Inc. (NASDAQ:MVST) designs, develops, and manufactures lithium-ion battery solutions. The company recently reported FY 2023 earnings, revealing a significant year-over-year revenue increase of 49.9% to $306.6 million, with a record quarterly revenue of $104.6 million in Q4 2023, representing a 61.4% increase.
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