The rise of electric vehicles (EVs) has been nothing short of a revolution in recent years, heralding a potential transformation of the automotive industry and a promising solution to the pressing issue of air pollution.
As the world embraced this electric wave, investors also turned their attention to these innovative companies, many of which went public. Despite a challenging year for stocks in 2022, EV stocks made a strong comeback this year.
With the EV landscape becoming more competitive, Finbold turned to AI powerhouse ChatGPT to identify three EV stocks poised to outshine the growing competition in the last quarter of 2023 and heading into 2024.
Picks for you
ChatGPT’s top pick
Amidst a wave of EV companies fighting for their market share, ChatGPT’s preferred EVs for investors to hold next year included industry leader Tesla (NASDAQ: TSLA), Chinese startup Nio (NYSE: NIO), and Lucid Motors (NASDAQ: LCID).
Tesla finding itself at the top of ChatGPT’s list is hardly a surprise. The carmaker revolutionized the entire industry in the past decade, turning it into the world’s most valuable auto company.
In 2023, the company’s shares witnessed a sharp recovery, soaring roughly 140% year-to-date due to a strong resurgence in demand and a broader market rebound.
ChatGPT sees Tesla’s stock as no less appealing than it is now, citing the company’s focus on emerging markets and innovative offerings such as its Full Self-Driving (FSD) technology, which will make its vehicles increasingly integrated with the ever-growing AI ecosystem.
Furthermore, the long-awaited launch of Cybertruck is another potential catalyst for TSLA’s stock price, assuming it can attract strong consumers’ demand as other, previous Tesla models.
“Tesla might be deep into the execution of its global expansion strategy, possibly focusing on establishing a significant presence in the emerging markets,’ OpenAI’s ChatGPT wrote.
“Further innovations in autonomous driving and their Full Self-Driving (FSD) technology might make Tesla cars more integrated with an AI-driven ecosystem.”
– the bot added.
Nio and Lucid
In addition to mighty Tesla, the other two EV stocks ChatGPT identified as potential winners going forward are automotive startups Nio and Lucid.
Unlike TSLA, neither NIO nor LCID recorded a particularly promising stock market performance in 2023. The two EV makers are both in the red territory on a year-to-date basis, declining 12.3% and 17.8%, respectively.
Nonetheless, the chatbot remains bullish on the companies’ 2024 prospects. For Nio, the AI tool said investors should keep an eye on its international expansion, especially in European and North American markets.
In addition, “if their Battery-as-a-Service (BaaS) model gained traction, they could be scaling up, positioning themselves uniquely in the EV market.”
As ChatGPT noted in its response, Lucid won investors’ attention after introducing the lightning-fast Lucid Air sedan. However, after a myriad of challenges and red flags such as overly expensive cars, weak delivery reports, and a staggering compensation package for its CEO, the automaker lost some of investors’ confidence in 2023, as reflected in its share price.
Going forward, however, ChatGPT believes Lucid may assert its status as a potential EV gem via the expansion of its current lineup and introduction of more affordable models.
While AI predictions have demonstrated their potential, it’s crucial for investors not to underestimate the significance of conducting thorough research.
Monitoring critical aspects like delivery numbers, profitability, and analysts’ reports can provide valuable insights into the true health and trajectory of these EV companies, ultimately contributing to well-informed investment decisions.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
