The 3 Best EV Stocks to Buy in April 2024

Stocks to buy

With the electric vehicle (EV) industry at a crossroads, it might seem odd to consider wagering on the best EV stocks to buy in April. Macroeconomic headwinds and fierce competition have led to a substantial slowdown in EV sales in 2023, and the trend continues into the first quarter (Q1) this year. To top it off, whispers are growing louder that the excitement surrounding the industry has fizzled out.

Despite the headwinds, EV sales are expected to rise this year and for the foreseeable future. However, it’s unlikely that we would see the same lofty growth rates we saw during the 2021 to 2022 period. Nevertheless, automakers still expect a future dominated by EVs, which makes it an opportune time to bet on the best EV stocks on the dip.

Toyota Motor (TM)

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Toyota Motor (NYSE:TM) may seem like an odd EV pick based on recent remarks. Company chairman Akio Toyoda believes in taking a “multi-pathway” approach for the future of its business rather than going all-in on EVs. Though his remarks were initially met with skepticism, Toyota’s diversified approach to EVs is now resonating more with the current market slowdown. This cautious yet pragmatic approach makes it one of the best low-risk EV plays. Moreover, its relatively safe strategy paid many dividends last year, with TM stock gaining more than 70% last year.

As we advance, the automaker plans to sell 1.5 million electric vehicles annually by 2026. Moreover, with its leadership in hybrids and interest in hydrogen fuel-cell technology, it is poised to continue delivering sustained growth to its investors. 2023 was a solid year for its business, with it generating robust revenue and EBITDA growth of 23% and 55%, respectively.

Li Auto (LI)

Source: Robert Way /

Li Auto (NASDAQ:LI) is one of the top Chinese EV players that saw a sizeable drop in its share price last year. Its stock is down more than 19% year-to-date (YTD) despite posting impressive delivery data and triple-digit top-line growth numbers in the past year. 

Its March delivery data revealed a significant 39% year-over-year (YOY) increase, with 28,984 units delivered. These stellar numbers have taken its first quarter (Q1) tally to 80,400 EVs, with deliveries up almost 53% year over year. These numbers could bring its cumulative deliveries past the 700,000 mark, a milestone lauded by its chairman and CEO Xiang Li as a testament to the firm’s commitment to product excellence and user value.

Furthermore, it ended last year with a massive cash buffer of $14.6 billion, with free cash flow (FCF) for Q4 at a whopping $2 billion. Therefore, Li Auto boasts incredible financial flexibility and the ability to continue investing in innovation and aggressive retail expansion.


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BYD (OTCMKTS:BYDDY) has risen to become the global leader in the EV market. Last year, it surpassed Tesla (NASDAQ:TSLA), the EV pioneer. BYD’s journey from an underdog to a top dog speaks volumes about its innovative prowess and strategic vision. 

In Q4 last year, it sold 526,409 units, outperforming Tesla’s sales of 484,507 and marking a major milestone in the EV space. Moreover, it ended last year with an 80% improvement in profits amidst the massive increase in sales volume.

Furthermore, it has kept the momentum up this year, with total vehicle and EV sales rising 41% and 28%, respectively, in March. For Q1, total vehicle sales rose 14% to 624,398, with EV sales up a healthy 13% to 300,114. These sales were down sharply quarter-to-quarter, though, and BYD handed back the title of biggest EV carmaker to Tesla.

Despite its breathtaking performance in the past few years, its stock still trades under 0.7 times forward sales estimates.

On the date of publication, Muslim Farooque 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 Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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