3 EV Stocks That Could Be Multibaggers in the Making

Stocks to buy

EV stocks are one of the hottest investing trends of the decade. But that doesn’t mean investing in the sector won’t come with its ups and downs. So far in 2023, global demand for electric vehicles (EVs) has softened. While the long term outlook remains bullish, investors should be aware that most EV companies will not survive. 

There have been a number of EV startup companies that emerged in the last decade. Many of them are still losing money and their path to profitability may never come. Additionally, the automotive industry is both extremely competitive and capital intensive. 

This means investors must choose EV stocks very wisely. As EVs continue to gain market share, now is a great time to position your portfolio for the long term. 

Below are my top three multibagger EV stocks to buy now!

Tesla (TSLA)

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Tesla (NASDAQ:TSLA) is having a strong year and the stock is up nearly 120% year-to-date (YTD). The company has largely benefited from the stock market rebound in 2023. However, Tesla’s financials have been a different story. The company has been largely affected by slowing EV demand and price cuts, suppressing margins. But Tesla’s strong moat and growth in various markets make them well positioned for future growth. 

The company is seeing serious growth in its energy storage business and this may only be the beginning. Energy deployments increased 90% year-over-year (YOY) in its latest Q3 2023 financial results. The company expects further ramps to bring its full capacity to 40 GWh at its megafactory in Lathrop, CA. Their FSD technology is also being undervalued, as the company ramps up development of their new AI supercomputer. This along with the ramp of their new gigafactory in Mexico could be what propels the company back to the $1 Trillion club.

Ferrari N.V. (RACE)

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Ferrari N.V. (NYSE:RACE) is a European automotive company based in Maranello, Italy. When you think of potential multibagger EV stocks, Ferrari is likely not to come to mind. However, its new CEO Francine Lacqua is a visionary and proudly embraces the automotive sector’s transition to EVs. 

A lot of  investors aren’t even aware that Ferrari is a public company and that they’re building their first fully electric supercar. Reports have estimates that the fully electric Ferrari GT will debut in 2025, with up to 1000 horsepower. In their latest financial results, the company saw strong revenue growth of 23.5% YOY. Net income rose 46% YOY to $330 million, or $1.82 per share. They also raised the FY 2023 guidance, suggesting strong order book growth out to 2025. As the company dips their toes in the EV market, investors should keep an eye on Ferrari going into 2024.

ON Semiconductor Corp (ON)

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ON Semiconductor Corp (NASDAQ:ON) shares plunged 21% after reporting their Q3 2023 financial results. The company issued weak revenue guidance for Q4 below Wall Street’s estimates. But investors have the opportunity to look at the bigger picture despite softening EV demand. 

In Q3 2023, ON saw total revenue of $2.18 billion, which was flat YOY. However, net income rose 87% YOY to $583 million, or $1.29 per share. This was an impressive quarter given the slower demand for EVs and higher interest rates. CEO Hassane El-Khoury, is bullish on the long term prospects of their silicon carbide market. With the completion of the expansion of their silicon carbide production facility in Bucheron, South Korea, they’re well positioned to continue gaining market share. On Semi is truly in its infancy stages of growth, making it one of the best multibagger EV stocks to buy. 

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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