And these changes could occur well before 2035. The Environmental Protection Agency projects that under its new rules on vehicle emissions, electric vehicles (EVs) could represent up to 56% of new passenger vehicle sales by 2032.
This goal is ambitious, considering that in 2023, electric vehicles (EVs) accounted for just 7.6% of the total U.S. vehicle market, according to estimates from Kelley Blue Book.
As the U.S. advances toward these EV adoption targets, Wall Street has spotlighted several EV stocks that are poised for significant growth. Here’s a look at three of them.
Tesla (TSLA)
When people think of EV stocks, Tesla is usually the first one to come to mind.
In 2023, the company achieved a significant milestone by delivering 1,808,581 EVs, which represents a 38% increase from 2022.
In the U.S., Tesla’s dominance in the EV market is particularly evident. Data from Kelly Blue Book indicates that 55% of the EVs purchased by Americans in 2023 were Tesla products, highlighting the brand's strong foothold and consumer preference in the domestic market.
However, it was recently reported that Tesla plans to lay off more than 10% of its global workforce. In a memo to employees announcing the move, CEO Elon Musk said that as Tesla gears up for its next growth phase, it is “extremely important to look at every aspect of the company for cost reductions and increasing productivity.”
As one of the market's most dynamic mega-cap names, Tesla's shares have also experienced considerable volatility. They doubled in value in 2023 but have seen a decline of 33% so far in 2024.
Wedbush analyst Dan Ives sees a revival on the horizon. The analyst has an “Outperform” rating on Tesla and a price target of $300, implying a potential upside north of 80%.
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Learn MoreFord (F)
Given that Ford's best seller is the F-Series of pickup trucks, the company isn’t considered a pure play EV stock.
But the automaker has made significant strides in electrifying its lineup.
In November 2019, Ford unveiled the Mustang Mach-E, a five-door electric compact SUV. This model hit the market in December 2020 and clinched the 2021 North American SUV of the Year Award. Moreover, Ford launched the all-electric F-150 Lightning pickup in April 2022, marking another significant step in its EV journey.
In its latest earnings report, Ford highlighted: “Sales volumes of the F-150 Lightning pickup and Mustang Mach-E SUV both were up year-over-year and respectively the top-selling electric pickup and No. 3 most popular EV of any type in the U.S. for 2023.”
Morgan Stanley analyst Adam Jonas has an “Overweight” rating on Ford and a price target of $16 — around 28% above where the stock sits today.
ChargePoint Holdings (CHPT)
ChargePoint Holdings doesn’t produce any electric cars, but it’s still solidly positioned for the EV boom.
The company has one of the largest EV charging networks in the world. It has more than 286,000 activated ports in both North America and Europe and has delivered more than 225 million charging sessions since its inception.
As more EVs are projected to populate American roads, the charging solutions provided by ChargePoint could become increasingly essential.
The stock, however, hasn’t been a hot commodity. Over the last 12 months, ChargePoint shares have fallen a staggering 82%.
That could give contrarian investors something to think about. Needham analyst Chris Pierce has a “Buy” rating on ChargePoint and a price target of $3.00, implying a potential upside of 87%.
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