Electric vehicle (EV) demand in the U.S. is facing headwinds due to high interest rates and a shift in consumer preference towards hybrid vehicles. Despite this, EV sales are steadily on the rise year-over-year, with EVs capturing 7% of the total U.S. auto market share in Q1. Additionally, the recent surge in oil prices coupled with anticipated rate cuts by the U.S. Federal Reserve are expected to bolster EV demand in the near future. The current scenario presents an opportune moment to identify potential stocks for investment amidst the EV demand slowdown.
Rivian (RIVN)
U.S.-based EV startup Rivian (NASDAQ:RIVN) has forged a strategic partnership with a key player in the commercial vehicle industry. This collaboration involves the utilization of Rivian’s chassis and batteries by JB Poindexter & Co to develop an electric delivery van. Notably, this van is set to be incorporated into Canada’s postal delivery system for mail distribution.
JB Poindexter boasts longstanding relations with major shipping giants FedEx (NYSE:FDX) and UPS (NYSE:UPS). Therefore, the collaboration between Rivian and JB Poindexter presents a promising opportunity for revenue growth through potential deals with these renowned package delivery companies. The extended reach of JB Poindexter to government-owned delivery entities can further enhance Rivian’s financial performance.
EVgo (EVGO)
Amidst the slowdown in EV sales growth in the U.S., several automakers are witnessing rapid expansion. This trend augurs well for EVgo (NASDAQ:EVGO), a prominent provider of public EV chargers nationwide.
For instance, Hyundai’s U.S. EV sales surged by nearly 130% last quarter compared to the previous year, reaching 5,345 units. Similarly, Ford’s (NYSE:F) U.S. EV sales recorded an 86% year-over-year increase to over 20,000 vehicles. BMW (OTCMKTS:BMWYY) delivered over 10,700 EVs to U.S. consumers last quarter, reflecting a robust 63% year-over-year growth.
The notable growth of select EV brands signifies a positive outlook for the entire EV market. Increased production and sales of EVs are anticipated for these brands, consequently driving demand for EVgo’s charging infrastructure in the long run.
Xpeng (XPEV)
Chinese EV manufacturer Xpeng (NASDAQ:XPEV) is capitalizing on the flourishing EV landscape in China, with deliveries climbing by 20% last quarter to over 21,800 units compared to the previous year.
The company boasts an impressive Advanced Driver Assistance (ADA) system, with reports indicating a robust 82% penetration rate of its ADA system in urban driving scenarios. The high user engagement with Xpeng’s ADA system underscores its functionality and user-centric design.
Furthermore, Xpeng’s collaboration with Volkswagen (OTCMKTS:VLKAF) is poised to enhance the company’s credibility and sales in both China and Europe, leveraging Volkswagen’s strong brand presence in these regions. The joint initiative between the two firms to introduce two new EV models in 2026 is set to bolster Xpeng’s market position significantly.