The electric vehicle (EV) sector has faced a challenging beginning in 2024, with stocks experiencing a notable sell-off partly influenced by the broader market trend. As the performance of stocks throughout 2024 remains uncertain, investors are searching for the next promising EV equities poised for growth.
In this regard, Finbold utilized OpenAI’s generative artificial intelligence (AI) tool, ChatGPT, to provide insights into two EV stocks likely to skyrocket in 2024. The tool identified the following two stocks that investors should watch closely.
Tesla (NASDAQ: TSLA)
According to ChatGPT, Tesla (NASDAQ: TSLA) is poised for growth in 2024, propelled by a multifaceted approach entailing market dominance, innovation, global expansion, and success in the energy sector.
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ChatGPT noted that Tesla’s stronghold in the electric vehicle market is evident through the continued popularity of models like the Model 3 and Model Y, contributing to its overall market dominance and potential positive impact on the stock.
The tool noted that a pivotal factor in Tesla’s potential surge is its commitment to innovation, particularly in developing Full Self-Driving (FSD) technology, which stands as a potential catalyst that could substantially impact Tesla’s stock value.
It also noted that establishing gigafactories in key locations, including the United States, China, and Germany, positions the company to meet the surging global demand for electric vehicles and reduces production and transportation costs, enhancing overall profitability.
Beyond the electric vehicle market, ChatGPT pointed out that Tesla’s foray into the energy sector, encompassing solar products and energy storage solutions, contributes significantly to its revenue.
In addition to the catalysts provided by ChatGPT, Tesla is leveraging various milestones achieved in 2023 to spark its stock rally. Despite facing obstacles, the company successfully unveiled the Cybertruck, partly resulting in a notable stock increase of over 60% in 2023.
In the meantime, TSLA was trading at $212.19 by press time, having recorded year-to-date (YTD) losses of almost 15%.
NIO Inc. (NYSE: NIO)
The AI tool suggested that Nio Inc. (NYSE: NIO) is poised for growth, having effectively established itself in the extensive Chinese electric vehicle market, a pivotal environment given the country’s status as one of the world’s largest automotive markets. This is complemented by the fact that the company’s strategic focus on premium electric SUVs, including the ES6 and ES8, has resonated positively with Chinese consumers.
Additionally, ChatGPT noted that this dominance positions NIO as a significant player in satisfying the region’s demand for high-quality electric vehicles.
Over the past year, NIO has demonstrated robust performance, defying economic conditions in China to record steady deliveries.
Notably, in 2023, NIO achieved a remarkable milestone by delivering 160,038 vehicles, reflecting a 30.7% surge compared to the previous year. The company also exceeded a critical threshold by achieving over 400 daily deliveries in October 2023, showcasing its consistent growth and market presence.
By press time, NIO was trading at $6.06 with YTD losses of about 28%.
In conclusion, the progress of the highlighted stocks will also be significantly influenced by the overall stock market trajectory alongside other factors such as inflation and interest rates.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.