In an increasingly sustainability and clean energy-focused world, electric vehicle (EV) stocks have become a prominent topic among investors. Many are eager to identify EV companies promising short-term success and long-term growth potential.
In this context, Finbold turned to Google Bard’s artificial intelligence (AI) tool to recommend three EV stocks that are worthy of buying and holding indefinitely. The tool recommended the following three stocks in response to ‘Name three electric vehicle stocks to buy and hold forever.
At the top of Google Bard’s list is Tesla (NASDAQ: TSLA), which maintains its leadership position in the electric vehicle market. Google Bard AI lauded Tesla for its robust brand, cutting-edge technology, and loyal customer base. Tesla has consistently reported growth over multiple quarters, a rarity in the EV industry.
Tesla’s aggressive expansion strategy, including constructing new factories and developing innovative products, positions it as a long-term contender in the EV market. The company is also banking on the delivery of models such as Cybertruck to generate substantial interest. As reported by Finbold, insights from OpenAI’s ChatGPT suggest a positive impact on the company’s stock in the long run once the delivery of Cybertruck picks up.
Tesla’s stock has demonstrated remarkable growth over the years, and its future outlook remains promising as it continues to dominate the EV landscape despite increasing competition. While Tesla’s stock price exhibited volatility in 2023, it has shown an overall upward trend, with a year-to-date increase of approximately 110%.
BYD Company, a prominent Chinese electric vehicle manufacturer, has been making significant waves in the industry while capturing substantial market share. According to Googe Bard, the firm’s vertical integration strategy sets BYD apart, wherein it manufactures its own batteries and essential components.
This approach provides BYD with a distinct cost advantage over its competitors. This growth was highlighted by a Finbold report that indicated that in the first half of 2023, BYD sold about 1.19 million units, beating Tesla’s 888,879.
BYD enjoys the backing of billionaire investor Warren Buffett, and the company has consistently demonstrated its ability to seize opportunities as they arise. BYD’s financial health and growth prospects indicate its potential to compete with the market.
Furthermore, BYD stands out for its impressive growth potential. The company also boasts attractive valuation levels, characterized by a low EV/sales ratio when compared to its peers.
In summary, investors considering BYD Company may find its unique production approach and aggressive growth strategy to be compelling reasons for considering it as an attractive long-term investment option. Despite its growth potential, it’s worth noting that BYD stock has predominantly traded in the red zone throughout 2023.
Albemarle Corporation (ALB)
While not an EV manufacturer, Albemarle Corporation (NYSE: ALB) plays a pivotal role as a leading lithium producer in the electric vehicle ecosystem. Lithium is a critical component in EV batteries, and as the demand for electric vehicles surges, so does lithium.
Albemarle’s strategic position in the lithium market places it as a vital player in the electric vehicle revolution. The company is well-prepared to benefit from the ongoing growth of the EV industry.
Despite not being a conventional EV stock, Albemarle Corporation offers investors exposure to the essential supply chain of the EV market, making it an intriguing option for those seeking diversification within the sector.
However, it’s worth noting that Albemarle has faced regulatory challenges. The company is set to pay more than $218 million, including over $103 million to financial regulators, as part of a settlement to resolve a U.S. investigation into its involvement in bribing government officials in multiple foreign countries, as announced by the Department of Justice.
Likewise, similar to other players in the EV market, Albemarle has experienced a decline in its stock performance, with its shares trading predominantly in the red zone in 2023, marking a decrease of over 20% during the year.
As investors seek long-term growth and sustainable investments, the electric vehicle market remains a compelling opportunity. However, it’s crucial to remember that the stock market is subject to volatility and unforeseen events.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.