2 Top Electric Vehicle Stocks to Buy in December

In recent years, electric vehicle (EV) stocks have had a wild ride as rising inflation and parts shortages drove up vehicle prices (leaving some buyers behind) and caused production shortages at many companies.

But every year it becomes more and more clear that electric vehicles are the future of the automotive market, even if that future is arriving a little slower than previously thought. Here are two electric vehicle stocks to buy now as the market continues to take shape.

I bought shares of Rivian Automotive (NASDAQ:RIVN) earlier this year, and although the price has changed little since then, the company’s deals and cost cutting make me optimistic about its long-term prospects.

On the one hand, Rivian creates unique products that continue to attract large investments. Amazon was an early investor in Rivian and still owns 17% of the company.

The e-commerce juggernaut is using 10,000 Rivian electric vans to deliver packages to its customers, and the entire order of 100,000 vans will be delivered by 2030.

More recently, Volkswagen and Rivian have formed a joint venture in which VW will receive some of Rivian’s technology for use in its own vehicles. The partnership not only proves Rivian is on the cutting edge of electric vehicle technology, but also nets it up to $5.8 billion from VW.

These funds should help Rivian launch its smaller R2 and R3 models in the coming years. Meanwhile, the company cut costs on its current range of vans, R1T trucks and R1S SUVs by up to 35%, moving it closer to gross profitability. Management says the company will achieve modest gross profit by the end of the fourth quarter, something many of its fellow electric vehicle startups can’t claim.

The stock currently has a price-to-sales ratio (P/S) of just 2.8, making it much cheaper than its competitors ClearThe P/S ratio is 7.2. However, keep in mind that Rivian shares will likely be volatile as the company grows.

BYD (OTC: BYDDY) is a China-based company that is one of the largest electric vehicle manufacturers in the world, producing more than 3 million vehicles in 2023, half of which are battery-powered electric vehicles. The company produces a full range of vehicles, allowing BYD to benefit from cost savings and production efficiencies that other electric vehicle manufacturers do not have.

The company has often been compared to Tesla Because of its size and competitiveness in the electric vehicle market, it was notable when BYD announced its third-quarter results (ended September 30), with revenue up 24% from the year-ago quarter to $28.2 billion – more than Tesla’s $25.2 billion.

BYD holds an impressive 20% of the automobile market in China and has its sights set on expanding exports. The company currently ships about 8% of its vehicles to a few international markets, and its European exports rose 32.6% in the third quarter.

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