Electric Vehicle Sales (EV) had trouble in 2024, but not in the way you would think. TestifyFor example, it proved an annual sales decline of 1% in 2024, its first in over a decade. This growth rate became below the company's expectations. In fact, the growth of the industry as a whole was lower than the expectations of analysts.
But don't let these poor figures cheat you. In 2024, EV sales in the US were still growing 7.3%, with 1.3 million EVS being sold – a new record. And worldwide, about 20% of all vehicle sales were EVS last year. According to most experts, there is more growth on the way for years, if not decades, to come.
If you want to ride this growth opportunity, here are two stocks you should get to know.
When it comes Ev stocksMy favorite company right now is Rivian Automotive (NASDAQ: RIVN). This stock is a perfect combination of risk and reward at the moment, but there is an important caveat that you need to be aware of.
Starting an EV company from scratch is hard work. Of course, the long hours involved as an entrepreneur, but the biggest barrier seems to be fairly simple: access to capital. It can often take a decade or more to get a vehicle from the idea step to produce real mass. Many EV initial businesses have failed before sending their first vehicle due to running out of money.
This is what makes EV maker as Rivian so attractive. The company is still quite small, with sales under $ 5 billion. Yet, it has been proven to the market and investors that can provide EVS that customers love on some kind of scale. Back and User reports A survey, Rivian scored the highest of any car manufacturer in terms of customer satisfaction and loyalty, a list that included not only other EV manufacturers, but also conventional car makers.
To be sure, Rivian is not out of the trees yet in capital. It still loses money on every vehicle it does, and burned the last quarter through more than $ 1 billion in cash.
But that could change quickly when it introduces its three new mass market vehicles in 2026, all of which should cost less than $ 50,000 for a base model. These affordable models should send sales arising to the sales if they can hit the market in time and maintain the company's reputation for quality. Significant sales could finally provide the operating leverage necessary to achieve profitability, something Tesla achieved more than a decade ago.
Rivian currently shares trade on sales 2.8 times, against Tesla valuation of 13.6. While not exactly apples-to-apartment businesses, I think Rivian's projected sales ramping in 2026 and a possible flip to profitability would significantly narrow this pricing gap. But investors looking to take advantage will need to wait patiently for another year or two.
