We recently compiled a list of the 15 Biggest EV Stocks in the World in 2024 and in this article, we discuss whether Lotus Technology Inc. (NASDAQ:LOT) is the largest EV stock today.
According to the Global EV Outlook 2024 by the International Energy Agency, electric car sales surged in 2023, reaching nearly 14 million globally. This represents a 35% jump from 2022 and brings the total number of electric cars on the road to 40 million. Weekly registrations in 2023 surpassed the entire annual total from just ten years ago. Electric cars now account for 18% of all car sales globally, a significant climb from 2% in 2018. This rapid growth indicates a maturing electric car market with strong momentum. Interestingly, battery electric cars make up the majority (70%) of electric vehicles on the road today.
Approximately 95% of these sales were concentrated in China, Europe, and the United States, which dominate new electric car registrations. In these regions, electric cars represent a significant share of their local markets, with over 30% in China and over 20% in Europe. As these three key markets account for two-thirds of total car sales globally, their swift adoption of electric vehicles has a significant influence on worldwide trends.
As a result, many of the major EV manufacturers are based in these countries. However, emerging players are also making their mark in other regions. For instance, Vietnamese electric vehicle (EV) maker VinFast Auto made its debut on NASDAQ in August 2023. The company was valued at approximately $23 billion through a SPAC deal with Black Spade. VinFast Auto is a subsidiary of Vietnamese conglomerate Vingroup and has already entered the North American market, importing about 2,100 EVs from Vietnam to the US and 800 to Canada.
In addition to US, China, and Europe, emerging markets like Southeast Asia and Brazil are also seeing rising EV sales, supported by various incentives and investments. In terms of the future outlook for electric vehicles, the long-term goals of top automakers in the world are quite ambitious. If achieved, they could put over 20 million electric cars on the road by 2030. This will lead to electric vehicles making up between 42% and 58% of car sales by 2030, exceeding even the most optimistic forecasts. The electric vehicle market size is predicted to reach over $950 billion by 2030 with a compound annual growth rate (CAGR) of 13.7% between 2023 and 2030.
Key drivers for growth in the Global EV market include decreasing EV battery prices and supportive government policies. The fastest-growing market segments are fuel-cell electric vehicles (FCEVs) and mid-priced EVs. Additionally, the Asia-Pacific region is expected to lead market growth. However, challenges such as high initial investments for charging infrastructure could impede growth.
A cutting-edge electric vehicle being charged in a city street as the sun sets.
Our Methodology
To compile our list of the 15 biggest EV stocks in the world in 2024, we shortlisted companies on the basis of their market capitalization as of June 6. We have only included companies that are pure play in the EV sector or have substantial exposure to the sector. The biggest EV stocks in the world in 2024 have been ranked in ascending order of their market capitalization figures in USD. We also scanned our database of 919 hedge funds (as of Q1 2024) to share the number of hedge fund investors, where applicable.
“Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).”
Is Lotus Technology Inc. (NASDAQ:LOT) the Largest EV Stock Today?
Lotus Technology Inc. (NASDAQ:LOT)
Market Capitalization: $6.63 Billion
Number of Hedge Fund Holders: 11
Lotus Technology Inc. (NASDAQ:LOT) is a luxury EV player in China, the UK, and the EU. It offers high-end battery-electric SUVs and sedans while prioritizing research and development (R&D) in cutting-edge automotive technologies like electric powertrains and digitalization. Lotus Technology Inc. (NASDAQ:LOT) recently revealed luxury customized editions of classic sports cars and BEV lifestyle models.
Lotus Technology Inc. (NASDAQ:LOT) recorded strong revenue growth in Q1 2024. Revenue grew by 811% YoY to $173 million while the gross profit margin was recorded at 18%. The company delivered 2,194 vehicles during the quarter, with the majority (75%) coming from outside China.
Based on the company’s volume projections, the projected sales revenue this year is expected to exceed $2 billion, a significant increase from approximately $680 million in 2023.
Despite the projected growth, analysts are not too bullish on the stock and recommend a cautious approach. On Monday, April 22, 2024, Deutsche Bank reported the latest price target for Lotus Technology (NASDAQ:LOT), setting it at $7. This price target reflects a potential downside of over 20%.
Overall, Lotus Technology Inc. (NASDAQ:LOT) ranks 8th among the 15 biggest EV stocks in the world in 2024. You can visit the 15 Biggest EV Stocks in the World in 2024 to see the other electric vehicle companies that are on the hedge fund radar.
While we acknowledge the potential of electric vehicle companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.
Disclosure. None. This article is originally published on Insider Monkey.