Two EV stocks to buy in February

Sales of electric vehicles (EVs) were tough in 2024, but not in the way you think. TeslaFor example, annual sales fell by 1% in 2024, marking the first decline in over a decade. This growth rate fell below the company’s expectations. In fact, the overall industry growth was below analyst expectations.

But don’t let these poor people fool you. In 2024, US EV sales increased 7.3%, with 1.3 million EVs on sale. This is a new record. And worldwide, last year, around 20% of all vehicle sales were EVs. According to most experts, there is more, if not decades, growing in the future.

If you want to ride this growth opportunity, here are two stocks you need to know.

If that’s coming EV stockmy favorite company is now Libian Automotive (NASDAQ: rivn). This stock is now the perfect blend of risk and rewards, but there are important caveats to keep in mind.

Starting an EV company from scratch is a tough job. Of course, there are long periods of entrepreneurship, but the biggest hurdle seems to be rather simple. Access to capital. Often, it can take more than a decade to acquire a vehicle from the idea stage to actual mass production. Many EV startups failed before delivering their first vehicle due to lack of money.

This is what makes EV makers like Libian so attractive. The company is still very low, with sales of less than $5 billion. However, it has been proven to the market and investors that customers can provide the EV they love on some scale. According to Consumer Report In the survey, Libian scored the highest record of any automaker in terms of customer satisfaction and loyalty, if it is a list that includes not only other EV manufacturers but also traditional automakers.

Certainly, Libian has not yet left the forest in terms of the capital. It still lost money on every vehicle it makes, and the last quarter burned over $1 billion in cash.

However, if we introduce three new mass market vehicles in 2026, it could change rapidly. These affordable models should spike sales if they can hit the market on time and maintain the company’s reputation for quality. Something Tesla achieved over a decade ago can significantly increase the sales leverage it needs to ultimately achieve profitability.

Currently, Libian is stakes in stock trading with just 2.8 times sales, compared to Tesla’s rating of 13.6. It’s not the perfect business for apples, but Libian is expected to be sold in 2026, and I think this valuation gap will be significantly reduced if it potentially reverses its profitability. However, investors looking to capitalize on it will need to keep patients for another year or two.

The story continues

Do you need maximum growth potential? Your best bet is now Meid Group (NASDAQ: LCID). Lucid’s sales base is currently about 80% smaller than Rivian’s sales base, and the company is further apart from launching its mass market model, which can add significantly more growth than its current luxury lineup.

However, this small size should help maintain a higher growth rate than Rivian over the next year or two, especially given the gravity SUV platform that was launched only last month. Although sales in January were already 50% higher than last year, the total number of vehicles sold remained low at just 665 vehicles last month.

I’m not a Lucid fan because of that rating. We will trade stocks at 9.2 times the sales against Libian’s 2.8. However, there is no doubt that Lucid will have a higher short-term growth rate. This year, analysts expect sales to increase by 117% on the clear, but at just 11% in Libian. I think Libian’s valuation and long-term growth outlook are excellent, but those looking for the biggest sales growth at the moment should stick to Gid and its short-term potential.

Have you ever felt like you missed a boat when buying the most successful stocks? If you do that, you’ll want to hear this.

In rare cases, the team of analyst experts “Double Down” stock Recommendations for businesses they think are trying to pop. If you’re worried that you’ve already missed the chance to invest, now is the perfect time to buy before it’s too late. And the numbers speak for themselves:

• nvidia: If you invest $1,000 when it doubled in 2009, There is $336,677! *

• apple: If you invest $1,000 when it doubled in 2008, There’s $43,109! *

• Netflix: If you invest $1,000 when it doubled in 2004, There is $546,804! *

Currently, we are issuing “double-down” alerts to three incredible companies, and we may not have a chance like this anytime soon.

learn more “

*Stock Advisor will return as of February 3, 2025

Ryan Vanzo There is no position in any of the stocks mentioned. Motley Fools have a job at Tesla and recommend it. To Motley’s fool Disclosure Policy.

Two EV stocks to buy in February Originally published by The Motley Fool