Many electric vehicle (EV) stocks soared in 2020 and 2021, but a lot of them fizzled out over the following years as rising interest rates chilled the hot market. Price wars, supply chain disruptions, inflation, higher tariffs, and intensifying trade wars exacerbated that pressure.
However, investors who can look past those near-term headwinds might find some promising plays in what has become an out-of-favor sector. I believe these three EV-oriented stocks -- Nio (NIO 0.58%), EVgo (EVGO +3.76%), and Navitas Semiconductor (NVTS 0.48%) -- could turn a modest $500 investment into a few thousand dollars in just a few years.
Image source: Getty Images.
1. Nio
Nio is a major producer of electric sedans and SUVs in China. Its core Nio brand sells higher-end vehicles; its Onvo brand sells cheaper SUVs; and its Firefly brand sells compact EVs. It differentiates itself from its competitors with swappable batteries which can be switched out at its own battery stations as a faster alternative to EV chargers.
NYSE: NIO
Key Data Points
Nio faces tough competition in China, but it's gradually expanding into Europe. From 2019 to 2024, its deliveries surged nearly 11-fold from 20,565 to 221,970; its vehicle margin improved from negative 9.9% to positive 12.3%; and its revenue grew at a compound annual growth rate (CAGR) of 53%.
That growth was fueled by its robust sales of its higher-end sedans and SUVs, the expansion of its swapping network and battery-as-a-service (BaaS) subscriptions, and its rising shipments in Europe. Government subsidies in China also helped it survive a severe credit crunch in early 2020.
From 2024 to 2027, analysts expect Nio's revenue to grow at a CAGR of 26%. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in the final year as it sells a higher mix of premium vehicles, expands its battery subscriptions, and streamlines its spending.
But with a market cap of $7.8 billion, Nio trades at just 0.6 times this year's sales. Its valuations are being compressed by the trade war and tariffs, but it could soar higher on any hint of a trade deal or milder macro and competitive headwinds.
2. EVgo
EVgo is a leading builder of EV charging stations in the U.S. with 4,240 charging stalls serving 1.4 million customers at the end of the first quarter of 2025. Its drivers can pay for each individual charge or sign up for discounted plans, which start at $6.99 a month.
NASDAQ: EVGO
Key Data Points
Since the end of 2022, EVgo's number of charging stations increased by more than 50% as its total number of customers grew by over 150%. From 2022 to 2024, its revenue grew at a CAGR of 117%. That expansion was fueled by its acquisition of Recargo, which coincided with its special purpose acquisition company (SPAC) merger in 2021; its partnerships with General Motors, Berkshire Hathaway's Pilot Flying J, and Chevron; and federal and state incentives for the construction of more charging stalls.
From 2024 to 2027, analysts expect EVgo's revenue to grow at a CAGR of 32% as those tailwinds pick up again. They also expect its adjusted EBITDA to turn positive in 2024 and continue climbing through 2027 as economies of scale kick in. With a market cap of $462 million, EVgo trades at just 1.3 times this year's sales. The softness of the U.S. EV market is likely squeezing its valuations, but it could command a much higher valuation once the macroenvironment improves.
3. Navitas
Navitas is a leading producer of gallium nitride (GaN) and silicon carbide (SiC) chips. These types of chips can resist higher voltages, switch at higher speeds, and operate at higher temperatures than traditional silicon chips. Its GaN integrated circuits (ICs) are widely used in EV chargers, and it produces SiC devices for EV platforms. It also supplies chips for laptop adapters, data center power supplies, solar inverters, industrial motor drives, and energy storage solutions.
NASDAQ: NVTS
Key Data Points
From 2020 to 2024, Navitas' revenue grew at a CAGR of 62% as its adjusted gross margin expanded from 33% to 42%. It achieved that growth even as the EV, solar, and industrial markets -- which were expected to generate robust demand for its GaN and SiC chips -- faced tough macroheadwinds over the past few years.
From 2024 to 2027, analysts expect Navitas' revenue to increase at a CAGR of 17% as its adjusted EBITDA turns positive by the final year. That growth should be driven by a new artificial intelligence (AI) data center deal with Nvidia, the mainstream adoption of fast chargers in the consumer electronics market, and the broader usage of SiC chips in EV chargers.
With a market cap of $1.2 billion, Navitas might seem a bit pricey at 19 times this year's sales. However, it could be well positioned to profit from the secular expansion of the nascent GaN and SiC markets. So 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.
