Firms that produce electric automobiles, trucks, vans, and commercial vehicles, as well as companies that provide electric automotive components and services, make up the electric vehicle industry. While several traditional automakers create electric cars (EVs), investors should focus on firms that are primarily pure-play electric vehicle manufacturers. The electric vehicle industry is still in its infancy and is rapidly expanding. One of the most well-known names is obviously Tesla Inc. (TSLA), but there are others.

EV manufacturers may face much more upheaval in the future. China’s minister of industry, information, and technology stated that there are “too many” electric car manufacturers and that the government will push for consolidation. China is home to a high number of electric vehicle manufacturers. Over the last year, electric vehicle stocks, as represented by the KraneShares Electric Vehicle and Future Mobility ETF (KARS), have outperformed the overall market. Over the previous 12 months, KARS has had a total return of 65.0%, beating the Russell 1000’s total return of 35.8%.

There’s evidence that electric vehicle (EV) adoption is on the rise everywhere you look. However, there are several more ways to comprehend the potential of electric vehicles. Take a peek at the industry’s data, for example. Overall, the growth rates are quite promising. According to some estimates, by 2040, electric cars will account for 58% of worldwide passenger vehicle sales.

Let’s have a brief, detailed look at just a few electric-vehicle stocks that the experts consider smart picks for our growing portfolios:

Lucid Group Inc (LCID)

Lucid Group, Inc. (LCID) is a California-based electric car manufacturer with headquarters in Newark. Energy storage and original equipment manufacture are two of Lucid’s other segments. The firm was established in 2007, and on October 30th, the firm began delivering vehicles for the first time. Furthermore, the electric car manufacturer now has a backlog of 17,000 vehicles.

LCID indicated in its Q3 report that its prior 13,000 car backlog was worth $1.3 billion. That implies the backlog of 17,000 vehicles is worth $1.7 billion in future income. Models and price will determine the final numbers, but LCID is in a great position regardless. For its current quarter, LCID shows us $90 million in sales until it reports again. Unless the numbers are wrong, they show projected quarterly sales growth of an incredible 38,682%, with a more modest yet still impressive EPS growth of 68.82%. The consensus price target for LCID from analysts that provide 12-month predictions is 57.00, with a high of 60.00 and a low of 16.00. The median estimate implies an increase of 14.34% over its current price. The consensus is to buy LCID.

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Nio Inc (NIO)

Nio (NIO) is a robust EV-maker. The only realistic criticisms of NIO are those that are both short-term and unexpected. China, in particular, has been subjected to a long-running regulatory crackdown that has harmed businesses in every industry. Furthermore, as a car manufacturer, Nio is vulnerable to supply-chain volatility. Semiconductor chips will continue to be tough to come by, although there are hints of progress. Nonetheless, these variables are mostly unexpected and outside the company’s control.

NIO, on the other hand, is chugging ahead and reporting great results. The company posted results on November 9th, which were higher than expected. NIO reported $1.52 billion in sales and a loss of 6 cents per share in the third quarter. Wall Street had predicted $1.46 billion in revenue and a loss of 10 cents per share for the quarter. As a result, prices rose briefly. As far as revenue goes, however, they have handily beaten projections for the past three consecutive quarters. Until NIO reports again, it shows sales of $9.8 billion, and the forecasts for both annual and quarterly growth look excellent. The consensus price target for NIO from analysts that provide 12-month predictions is 58.06, with a high of 87.09 and a low of 27.03. The estimate is up 42.10% from its current price. The consensus also gives NIO a strong buy rating.

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Xpeng Inc (XPEV)

XPeng Motors (XPEV), or just XPeng, is a Chinese electric car producer. Guangzhou is the company’s headquarters, with operations in Mountain View, California. XPEV is a major Chinese electric vehicle company with a promising future. On November 23rd, the company released its third-quarter profits, which were quite positive. But, if the October delivery data was any indicator, this was to be expected.

XPEV, in particular, supplied 10,138 automobiles last month. This was a 233% rise over the previous year (Y/O/Y). Furthermore, Q3 deliveries surged by more than 199% year-over-year to 25,666 units.

Investors should keep in mind that XPEV‘s long-term story outweighs its short-term concerns. This firm, like NIO, is subjected to a more extensive regulatory crackdown in China. XPEV is a young EV brand with a strong presence in the world’s largest EV market. To that aim, the business stated that it will begin shipping its fourth car type, an SUV named the G9, in Q3 2023. That should persuade some investors to invest. It’s also important to note that XPEV beat analysts’ projections in both categories in the previous two consecutive quarters. The forecasts for growth are optimistic, and the current quarter already brings us $6.1 billion in sales. The consensus price target for XPEV from analysts that provide 12-month predictions is 56.93, with a high of 87.09 and a low of 25.30. The estimate is up 13.70% from its previous price, and the experts agree that buying stock in XPEV is the way to go.

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