The Motley Fool has recommended three EV stocks. After booming in 2020-2021, the stocks of many industry players have fizzled out, but as contributor and analyst Leo Sun points out, "for investors who can look past those near-term headwinds [there might be] some promising plays." 

Nio

Chinese electric sedan and SUV maker Nio has a capitalization of $8.4 billion on the New York Stock Exchange. It is facing pressure from the trade war, but the stock could rocket, Sun says, "on any hint of a trade deal or milder macro and competitive headwinds."

Wall Street analysts expect the company's revenue to grow at a CAGR of about 26% between 2024 and 2027, it says in the article. They also expect adjusted EBITDA to turn positive by 2027 on a higher mix of premium vehicles, cost optimization, and an expansion of battery subscriptions. The latter allow drivers to swap batteries at the company's battery stations, which takes less time than recharging. 

EVgo

The financial performance of EV charging station builder EVgo, with a market capitalization of $1 billion, is set to improve thanks to network expansion and new contracts, according to the Motley Fool's Sun. 

Between 2022 and 2024, the company's revenue grew at a CAGR of 117%. Drivers of this growth include the acquisition of Recargo, behind an app designed to help find charging stations, as well as a partnership with General Motors and Pilot Flying J, owned by Warren Buffett's Berkshire Hathaway, through which EVgo is building charging stalls across the U.S. Between 2024 and 2027, the company's top line is expected by Wall Street to grow at a CAGR of 32%, with adjusted EBITDA turning positive and then continuing to climb, Sun notes. In 2024, the company reported revenue growth of 110% to $155.70 million and adjusted EBITDA growth of 45% to negative $32.47 million. 

Navitas 

Chipmaker Navitas has a market capitalization of $1.2 billion. Its gallium nitride and silicon carbide chips might replace traditional silicon chips in the future, Sun believes. These types of chips can resist higher voltages, switch at higher speeds, and operate at higher temperatures.

Wall Street forecasts Navitas revenue to grow at a CAGR of 17% between 2024 and 2027. This growth is expected to be driven by an AI data center deal with Nvidia, as well as mainstream adoption of fast chargers in the consumer electronics market and broader usage of silicon carbide chips in EV chargers.

"Not only is Navitas a near-term play on the EV market's recovery, it's also a long-term play on the disruption of traditional silicon chips," Sun concludes.

The AI translation of this story was reviewed by a human editor.

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