In 2024, many electric vehicle (EV) stocks faced significant challenges, with industry growth rates falling short of expectations and some stocks experiencing value drops of 50% or more. Despite these setbacks, the long-term growth potential for EV demand remains strong and intact. This presents a unique opportunity for investors. If you have $1,000 available that you can invest without impacting your essential expenses, this is an ideal moment to consider adding high-growth stocks to your investment portfolio. Among the three electric vehicle manufacturers discussed below, you are likely to find one that aligns with your investment goals.
Maximize Your Investment Potential with Lucid Motors
For those pursuing significant growth opportunities in the electric vehicle sector, Lucid Motors (LCID 1.47%) stands out as a top contender. While many EV manufacturers are grappling with stagnant or declining sales, Lucid has successfully increased its sales by an impressive 18% over the past year. Looking ahead, further growth is anticipated due to the recent launch of Lucid’s Gravity SUV model, with orders starting in November and shipments now beginning to ramp up. Analysts project that by 2025, Lucid’s sales could skyrocket by an astonishing 117%, making it a compelling choice for growth-focused investors.
RIVN Revenue (TTM) data by YCharts.
It is important to note that the market has already begun to factor in much of this anticipated growth, currently valuing Lucid at 8.5 times its sales. However, if the company meets analyst expectations, shares could trade at around 4 times the projected forward sales for the next year. With only a limited number of models available and a market capitalization of under $10 billion, Lucid Motors arguably presents more long-term upside potential than any other stock on this list, making it an attractive option for forward-thinking investors.
Discover a Potential Bargain in Rivian’s Stock
Rivian (RIVN 0.40%) has demonstrated its capability for impressive growth since going public in 2021, quickly escalating its annual sales from a few hundred million dollars to over $5 billion by mid-2024. However, the company has recently faced challenges, lacking fresh models to sustain these growth rates, resulting in a decline in total sales over the past year and a reduction in its price-to-sales ratio to a mere 2.7. Nevertheless, for patient investors, Rivian’s stock could soon emerge as a hidden bargain.
RIVN PS Ratio data by YCharts.
Currently, Rivian’s product lineup consists solely of its luxury R1T and R1S models, each priced over $100,000. This lack of affordable models has largely contributed to the company’s sales decline. Nevertheless, Rivian plans to introduce three new mass-market models by the end of next year: the R2, R3, and R3X, all priced under $50,000. This strategic expansion is expected to reignite growth, potentially matching or exceeding the company’s previous growth spurt. While it will take time for these new models to reach the market, those willing to hold for 24 to 36 months could see significant growth in both sales and stock valuation multiples.
Explore Investment Opportunities with Industry Leader Tesla
No comprehensive portfolio of electric vehicle stocks would be complete without including Tesla (TSLA 1.08%). While Tesla’s stock may not seem like a bargain at first glance—trading at 14 times its sales despite only a 2.5% revenue growth last year—the company possesses substantial advantages that are crucial for long-term success in the EV market. One of the key strengths is the leadership of its CEO, who, despite being a polarizing figure, is highly effective at garnering media attention and publicity for the brand.
Additionally, Tesla’s capital resources far surpass those of its competitors. This financial edge is particularly important in the electric vehicle industry, where the costs associated with designing and launching new models can reach billions of dollars. Investors should not overlook Tesla’s established manufacturing capabilities and extensive industry knowledge, which position the company favorably for future growth. While Tesla may not be the top growth pick on this list, it certainly remains a solid investment option, especially for those prioritizing stability and proven market leadership. However, for those seeking maximum growth potential, Lucid and Rivian may be the better choices.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.