3 Electric Vehicle (EV) Stocks That Could Make You a Millionaire

There’s no denying that electric vehicles (EVs) aren’t as common as the world initially expected them to be at this point. Although they exist and have a place in the automotive industry, the International Energy Administration reports that just under 1 in 5 vehicles sold in 2023 will be powered by an electric drive motor (including plug-in hybrids). Meanwhile, consumer interest in electric vehicles is waning here and abroad, with many citing a combination of range concerns and high costs as the main barriers to purchase. Too many EV stocks have far underperformed as a result.

Although it fell short of early expectations, the EV industry is still growing. Bloomberg Intelligence projects that last year’s electric vehicle sales of about 14 million will increase sales by 30 million in 2027, on the way to 73 million electric vehicle sales in 2040. With the trends working in their favor, several unprofitable manufacturers of electric vehicles could come out of the red. and into the black, pushing their underperforming stocks much higher as a result. It is this projected growth that has investors excited about the potential for millionaire returns.

Here’s a closer look at three potential millionaire EV stocks that risk-tolerant investors may want to consider.

1. Nicholas

Discussion of electric vehicles tends to focus on passenger vehicles, and for good reason, the world buys more than 70 million such cars every year. However, the underlying technology of electric vehicles is not limited to automobiles intended primarily for passengers. In many ways, they are suitable for the transport and logistics market. These are primarily Class 8 tractor-trailers (or “big rigs”) that are on the road several hours a day for several days a week. Averaging just 6 mpg of diesel, a truck can burn tens of thousands of gallons of fuel each year.

Come in Nicholas (NKLA -4.52%). It produces battery-powered Class 8 tractors — as well as hydrogen-powered versions of these haulers — that prove efficient, and marketable. They are on a par with diesel in terms of total tractive power, travel distance and running costs, but are much cleaner to run, meaning they already meet ever-increasing emissions standards. That’s why the company sold another 72 hydrogen fuel cell trucks last quarter, bringing total unit sales to 147 after just three quarters of availability. Shoppers include outfits like Walmart. For perspective, about a quarter of a million of these heavy-duty vehicles are sold each year in the United States alone, and the U.S. is only a fraction of the global market.

Oh, Nikola is also monetizing the technology by providing the hydrogen needed to power its rigs. This network of fuel stations is also expanding as the use of its trucks increases.

The company is still not profitable, which is probably the main reason why its stock has generated more frustration than gains since surging in 2020 during the COVID-19 pandemic. With revenue growth this year and next expected to exceed 200%, losses are shrinking fast.

Analysts expect this trend to matter. Their current 12-month consensus price target of $16.80 is more than 150% above the stock’s current price. Keep in mind, though, that Nikola has been facing some serious capital issues (or lack thereof) lately. This means there are above-average risks to consider here as well for investors.

2. Rivian Automotive

Certainly, regular passenger vehicles also present a tremendous EV opportunity.

adze (TSLA 4.18%) integrated the idea and for years was the only major player in the electric vehicle space. But good business ideas eventually attract newcomers. Founded as EV sports car manufacturer Mainstream Motors in 2009, the company has become Rivian Automotive (RIVN 0.99%) a few years later and it officially entered the electric vehicle market at scale in 2021, with electric pickup trucks, sport utility vehicles and thousands of battery-powered delivery vans built for the e-commerce giant. Amazon.

Rivian’s product focus is savvy. Conventional sedans are marketable, but consumers love their trucks and SUVs. The National Automobile Dealers Association estimates that about 80 percent of vehicle sales in the United States last year were light trucks — a category that includes SUVs and pickup trucks. These larger vehicles are also selling surprisingly well in Europe and increasingly even in China. For now, Rivian only manufactures and markets its vehicles in North America, but plans to enter Europe in the near future. China and other parts of Asia have also been on the radar for some time.

Like Nikola, Rivian is not profitable. It probably won’t be profitable in the near future either.

It it is however, it is making progress towards this end and is positioned to capitalize on the long-term growth of the EV industry.

3. Toyota

Last but not least, add Toyota engine (TM -0.77%) to your list of electric vehicle stocks that could eventually help you become a millionaire.

If it seems like Toyota hasn’t focused much on electric vehicles in the past, don’t be imagining things. It wasn’t. Although it produces hybrid and battery-powered vehicles, it has not invested much time and money in them. Instead, it has remained largely focused on traditional combustion vehicles while allowing other automakers to go to the trouble and expense of paving the way for EVs.

Now that is finally changing. With EV technology (mostly) optimized and charging infrastructure now in place, the company is turning up the heat. Sales of Toyota electric vehicles last year increased by 35%. That’s huge progress, even though these vehicles still only account for about a third of Toyota’s total unit sales.

However, there is a twist here. Recognizing that car owners are increasingly concerned that a vehicle powered solely by charged batteries simply does not or will not meet their needs, Toyota is doubling down on hybrid vehicles that also run on conventional gasoline once their battery charge it ran out.

Looks like the plan is working too. At a time when sales growth for conventional battery-powered electric vehicles is slowing, Toyota has seen accelerated growth from hybrid vehicles that already make up the vast majority of its electric vehicle output (up 24% in the last quarter). As it turns out, at least some drivers are comfortable with the idea of ​​a vehicle that is able to burn gas when needed.

However, this stock’s upside potential as an EV investment isn’t rooted in Toyota’s ability to pivot. It lies in the fact that Toyota is already a well-known and trusted name here and abroad. America’s best-selling cars in 2023 (and previous years) include the Camry, Rav4, Tacoma, and Corolla. While some consumers might be hesitant to buy an electric vehicle from a newer company like Rivian or even Tesla, they’re more likely to feel comfortable buying one from a manufacturer that’s seemingly been around forever.