Is LiveWire Group, Inc. (NYSE:LVWR) the Leading EV Stock to Invest in Currently?
We recently compiled a list of the 15 Biggest EV Stocks in the World in 2024 and in this article, we discuss whether LiveWire Group, Inc. (NYSE:LVWR) is the leading EV stock to invest in currently.
According to the Global EV Outlook 2024 by the International Energy Agency, electric car sales surged in 2023, reaching nearly 14 million globally. This represents a 35% jump from 2022 and brings the total number of electric cars on the road to 40 million. Weekly registrations in 2023 surpassed the entire annual total from just ten years ago. Electric cars now account for 18% of all car sales globally, a significant climb from 2% in 2018. This rapid growth indicates a maturing electric car market with strong momentum. Interestingly, battery electric cars make up the majority (70%) of electric vehicles on the road today.
Approximately 95% of these sales were concentrated in China, Europe, and the United States, which dominate new electric car registrations. In these regions, electric cars represent a significant share of their local markets, with over 30% in China and over 20% in Europe. As these three key markets account for two-thirds of total car sales globally, their swift adoption of electric vehicles has a significant influence on worldwide trends.
As a result, many of the major EV manufacturers are based in these countries. However, emerging players are also making their mark in other regions.
In addition to US, China, and Europe, emerging markets like Southeast Asia and Brazil are also seeing rising EV sales, supported by various incentives and investments. In terms of the future outlook for electric vehicles, the long-term goals of top automakers in the world are quite ambitious. If achieved, they could put over 20 million electric cars on the road by 2030. This will lead to electric vehicles making up between 42% and 58% of car sales by 2030, exceeding even the most optimistic forecasts. The electric vehicle market size is predicted to reach over $950 billion by 2030 with a compound annual growth rate (CAGR) of 13.7% between 2023 and 2030.
Key drivers for growth in the Global EV market include decreasing EV battery prices and supportive government policies. The fastest-growing market segments are fuel-cell electric vehicles (FCEVs) and mid-priced EVs. Additionally, the Asia-Pacific region is expected to lead market growth. However, challenges such as high initial investments for charging infrastructure could impede growth.
A fleet of electric vehicles in a cityscape, representing the companies success in urban transportation.
Our Methodology
To compile our list of the 15 biggest EV stocks in the world in 2024, we shortlisted companies on the basis of their market capitalization as of June 6. We have only included companies that are pure play in the EV sector or have substantial exposure to the sector. The biggest EV stocks in the world in 2024 have been ranked in ascending order of their market capitalization figures in USD. We also scanned our database of 919 hedge funds (as of Q1 2024) to share the number of hedge fund investors, where applicable.
“Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).”
Is LiveWire Group, Inc. (NYSE:LVWR) the Leading EV Stock to Invest in Currently?
LiveWire Group, Inc. (NYSE:LVWR)
Market Capitalization: $1.37 Billion
Number of Hedge Fund Holders: 9
LiveWire Group, Inc. (NYSE:LVWR) is a manufacturer of electric motorcycles based in the United States. It was established in July 2021 as a division dedicated to electric vehicles under the Harley-Davidson brand. The company recently unveiled a new S2 Mulholland model featuring eco-friendly parts and a fresh design that ditches the traditional gas tank.
According to the latest earnings report from LiveWire Group, Inc. (NYSE:LVWR), sales increased by 86% year-over-year, with 117 bikes sold in Q1 2024. Despite this growth, the company remains unprofitable, reporting a consolidated operating loss of $30.4 million. This loss aligns with expectations due to investments in new models and efforts to reduce EV costs.
From the start of 2022 through the first quarter of 2024, LiveWire Group, Inc. (NYSE:LVWR) has repurchased $773 million worth of shares and distributed over $200 million in dividends. This amounts to nearly $1 billion in capital returned to shareholders and represents a buyback of 14% of the outstanding shares. The company plans to continue this annualized rate of return throughout 2024.
Analysts predict future growth in the stock price with a $7.46 target by 2025. This reflects an upside potential of over 14% from the current price of $6.50.
As of Q1 2024, LiveWire Group, Inc. (NYSE:LVWR) was held by 9 hedge funds.
Overall, LiveWire Group, Inc. (NYSE:LVWR) ranks 15th among the 15 biggest EV stocks in the world in 2024. You can visit the 15 Biggest EV Stocks in the World in 2024 to see the other electric vehicle companies that are on the hedge fund radar.
While we acknowledge the potential of electric vehicle companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.
Disclosure. None. This article is originally published on Insider Monkey.
