7 electric vehicle stocks to buy before the bull market returns

Rising interest rates and inflation fears have had a huge impact on the stock market and the economy, including the auto industry. But that won’t last, and with the return of optimism, auto sales will pick up. Consumers are switching from gas-powered cars to electric vehicles, so it’s wise to find electric vehicle stocks to buy before the bull market returns.

The adoption of electric vehicles in the United States is impressive and growing at a rapid pace. Electric vehicle manufacturers are doing their best to increase production and meet growing demand. The government is also providing the necessary incentives to ensure rapid adoption of electric vehicles. Looking at the current scenario, it can be rightly said that electric vehicles are the future of the world and they are here to stay. The current market volatility can be seen as an ideal opportunity to invest in electric vehicle stocks before they pick up.

I’ve always been bullish about electric vehicle stocks because I believe in technology and its long-term impact on our lives. Full adoption of electric vehicles could take years, but we are on the right track. The electric vehicle companies mentioned here are in the growth phase and have huge potential for growth. Let’s dig deeper into electric vehicle stocks to buy before the bull market returns.

NIO Nio $19.49
XPEV XPeng $24.27
RACE Ferrari $207.49
BYDDF BYD Company $37.17
LCID Lucid $18.24
LI Li-Auto $32.93
SHORE Rivian $33.85

Nio (NIO)

Source: Robert Way / Shutterstock.com

Chinese electric vehicle manufacturer Nio (NYSE:NIO) has been making headlines lately for several positive developments. The company is delivering an exciting new battery upgrade for the fourth quarter of this year. It will offer a 150kWh solid-state battery to old and new Nio car owners.

All new Nio models will come with the new battery. Existing owners can easily swap out the batteries whenever they want.

This battery is a big step forward in the industry and it will dramatically improve the efficiency of Nio models. That said, the EV maker also has an attractive product lineup. Last month it launched the ES7, an advanced electric vehicle that can go from 0 to 60 miles per hour in less than four seconds. It is also working on a consumer model which will be available in 2024.

With a new battery and an attractive product lineup, there’s a lot to look forward to. After reporting strong monthly shipments for consecutive quarters, Nio has emerged as a major player in the electric vehicle industry and NIO stock is in for a bargain as it trades below $20. The new products will drive growth, and the company may also impress investors with the quarterly numbers.

The company is well positioned to capture much of the electric vehicle industry, so NIO stock is a solid buy before it begins its upward journey. It is one of the top EV stocks to buy before the bull market returns.

XPeng (XPEV)

The logo of Chinese electric vehicle manufacturer Xpeng (Guangzhou Xiaopeng Motors, also known as XMotors.ai) on a tablet.  Action XPEV.

Source: Koshiro K / Shutterstock

XPeng (NYSE:XPEV) is another strong player in the industry. He is slowly but surely making massive progress. XPEV stock is trading today at around $24, well above its peers but significantly below the all-time high of $56.

The electric vehicle maker beat revenue and EPS estimates in the prior quarter and delivered 15,295 vehicles in June, a 133% year-over-year increase. This despite supply chain issues and China’s lockdown.

This shows the immense potential of XPeng. The Guangzhou-based company expects to deliver 31,000 to 34,000 EVs this quarter and I believe it is already at the upper end of the expected sales range. We will also see a strong quarterly report coming soon.

XPEV stock is a solid long-term investment and is one of the top EV stocks to buy before the bull market returns.

Ferrari (racing)

A photo of the Ferrari logo on a red banner

Source: Shutterstock

Working in a league of their own, Ferrari (NYSE:RACE) is a name you associate with luxury. The company is gearing up to enter the electric vehicle industry and is poised for action as its first electric supercar hits the market in 2025. RACE stock is trading at just over $207 , lower than the 52-week high of $278.78.

Take this drop as a chance to top up the stock. You can’t compare Ferrari with other big EV manufacturers in the industry because it has already set a standard for itself. The company is known for quality over quantity and it caters to the luxury segment.

Its full-year turnover for 2021 was 4.3 billion euros and it should be noted here that the company does not manufacture many vehicles. Its lowest-priced vehicle starts at $226,000, but the numbers are mind-boggling and it has consistently reported an increase in the number of vehicles shipped over the past six years.

It currently only has plug-in hybrid cars, but it plans to change that. Ferrari expects 40% of its sales in 2030 to be electric vehicles, which will bolster the stock. Grab RACE stock while it’s still affordable.

BYD (BYDDF)

BYD Company Limited logo in front of their website.  BYDDY stock.

Source: T. Schneider / Shutterstock

BYD (OTCMKTS:BYDDF) is one of the holdings of Berkshire Hathaway (NYSE:BRK-ANYSE:BRK-B) and the company recently made headlines after beating You’re here (NASDAQ:TSLA) into delivery numbers. This manufacturer of electric vehicles and plug-in hybrids is growing at a breakneck pace and expanding its battery manufacturing business.

Despite everything affecting the economy in 2022, the company has managed to maintain its business momentum. It also entered the passenger vehicle market in Japan with three models, ushering in a new era.

Currently known as the world’s largest electric vehicle manufacturer, BYD is just getting started. The company is in the growth phase and has a long way to go.

BYD’s stock could be the next hot thing in the industry and could become the top maker of electric vehicles in the next few years.

Lucid (LCID)

A pre-production Lucid Air electric car is seen at a Lucid showroom in Millbrae, California.

Source: Tada Images / Shutterstock

Lucid Group (NASDAQ:LCID) is a small player in the industry and only went public last year. LCID stock was trading at $18.24 at the close on Thursday and its 52-week high was above $57. This shows the potential of the business in the long term.

Lucid only delivered 360 vehicles in the first quarter, so it may be too early to talk about the production schedule. But his Saudi collaboration will help him in the long run.

With production facilities in place and solid paper bookings, Lucid has the potential to reach a higher level of success. We might have a better look at the fundamentals of the business by the end of this year, but 30,000 bookings is no small number. LCID stocks may seem risky today, but the potential reward can be huge. Consider it one of the best EV stocks to buy before the bull market returns.

Li Auto (LI)

Li Auto (Li Xiang) brand logo and electric car in store.  A Chinese EV (electric vehicle) company

Source: Robert Way / Shutterstock.com

Li-Auto (NASDAQ:LI) does not have many products on the market, but it is make strong moves with the Li-One EV. Its shipments have soared 150% year over year and the stock has been on fire since the company’s first quarter report. LI stock is up 39% over the past six months and is trading at $32.67 today. The company sold 28,687 electric vehicles in the first quarter, up 63% from a year ago.

It has also delivered strong numbers over the past three months, and deliveries for the second quarter will be well above the forecast range. It recently unveiled the L9 which will begin deliveries by the end of August. The company expects to hit 10,000 sales in September. Without supply chain constraints and China’s lockdown, Li Auto might have already beaten some of the major players in the electric vehicle industry.

LI stock looks promising and has huge room to grow.

Rivian (RIVN)

The back of a silver Rivian van.

Source: Miro Vrlik Photography / Shutterstock.com

Next on the list is Rivian (NASDAQ:SHORE). One of the most talked about EV stocks lately, RIVN stock went public at $78 and hit an all-time high of over $179 in no time. However, the stock has fallen since then, but it still remains very valuable. The company has attracted a lot of interest from investors due to the Amazon (NASDAQ:AMZN) Contract.

The e-commerce giant had ordered 100,000 electric delivery vehicles to be delivered by 2030. This contract gave the company a massive boost and a solid boost to stock. There have been delays and supply chain issues, but Amazon recently revealed which trucks are ready for nationwide rollout. Plus, Tim Cook loves the Rivian electric truck. Stock up on RIVN stock before it flies away.

At the date of publication, Vandita Jadeja did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Vandita Jadeja is a CPA and freelance financial writer who enjoys reading and writing about stocks. She believes in buying and holding for long term gains. His knowledge of words and numbers helps him write clear stock analyses.

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