A lot electric vehicle (EV) stocks It soared in 2021 amid growth and a buying spree in meme stocks. But in 2022 and 2023, many of these stocks lost value as their growth cooled and rising rates burst their bubble valuations. The soft Chinese economy and the EV pricing war have further increased this pressure.

But with interest rates falling, some of these beaten-down EV stocks are starting to look like undervalued growth plays. Let’s examine three of these stocks — Nio (NYSE:NIO), Li Auto (NASDAQ:LI)And Joby Aviation (NYSE: WORK) — and see why they’re worth munching on in November.

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1.Nio

Nio is a Chinese EV manufacturer that produces electric sedans and SUVs. It differentiates itself from its competitors with batteries that can be quickly replaced at switching stations as a faster alternative to traditional chargers.

Nio delivered its first vehicles in 2018. From 2019 to 2023, its annual deliveries increased almost eightfold, from 20,565 to 160,038 vehicles. Its annual revenue grew at a compound annual growth rate (CAGR) of 63%. But its growth has slowed in 2022 and 2023 as it grapples with supply chain constraints, weather-related disruptions, macro challenges in China and a persistent pricing war in the electric vehicle market.

This slowdown scared the bullshowever, Nio’s deliveries grew 36% year-on-year in the first nine months of 2024, compared to 33% year-on-year growth in the first nine months of 2023. While increasing market share, vehicle margins also stabilized. sold a higher mix of premium vehicles and launched cheaper Onvo smart vehicles in China. It is also expanding into Europe, but those plans may be constrained by new tariffs on Chinese electric vehicles.

But despite this pressure, analysts expect Nio’s revenue to grow at a CAGR of 28% over 2023 and 2026. It’s not yet profitable, but its shares appear to be valued at less than 1x next year’s sales. It could eventually achieve a much higher valuation as it overcomes short-term challenges.

2.Li Automatic

Li Auto is one of China’s leading plug-in hybrid electric vehicle (PHEV) manufacturers. It sells four plug-in hybrid SUV models (L6, L7, L8 and L9) and launched its first fully battery-powered electric minivan, the Li Mega, earlier this year.

Li started to deliver It launched its first vehicles at the end of 2019. From 2020 to 2023, its annual deliveries increased more than 11-fold, from 32,624 to 376,030 vehicles. From 2020 to 2023, its revenue increased by CAGR, or 136%. It also became profitable for the first time in 2023.

Li’s profits soared even as he built a massive network of supercharging stations across China. At the end of its last quarter, the company was operating 894 supercharging stations with 4,286 charging stations. It also operated 479 retail stores in 145 cities.

Li faces some headwinds in the near term. A price war in the electric vehicle market has squeezed vehicle margins, while rising trade tensions and new tariffs have forced it to postpone its first overseas expansion into the US, the Middle East and other overseas markets.

However, from 2023 to 2026, analysts expect Li’s income to grow at a Compound Growth Rate (CAGR) of 25%, while his net income is expected to grow at a Compound Growth Rate (CAGR) of 15%. These are excellent growth rates for a stock trading at just 17 times forward earnings and less than 1x next year’s sales. Like Nio, Li could receive a much higher valuation if the EV pricing war cools, China’s economy stabilizes, and economies of scale continue to reduce operating expenses.

3. Joby Aviation

Joby Aviation is developing electric vertical takeoff and landing (eVTOL) aircraft. The first commercial eVTOL aircraft, the S4, carries a pilot and four passengers, can travel 100 miles on a single charge, and has a maximum speed of 200 mph. It was essentially designed as a cheaper, faster, quieter and greener alternative to traditional helicopters. It is also easier to land in urban areas, making it suitable for local air taxi services.

Joby currently has a $131 million contract with the US Department of Defense (DOD) to deliver up to nine eVTOL aircraft to the US Air Force. The company, which delivered its first aircraft to Edwards Air Base last year, plans to deliver its next two aircraft to MacDill Air Base in 2025. The company is also developing a hydrogen-powered eVTOL aircraft that could potentially reach five times the range of its first-generation battery. -reinforced counterparts.

Joby is still at a pretty high level speculative stock. Analysts expect it to generate just $395,000 in revenue this year, with a net loss of $467 million. However, they expect a net loss of $532 million with a revenue of $104 million by 2026.

Based on these expectations and its $3.56 billion enterprise value, Joby’s shares are not worth more than 7 times its projected 2026 sales. toyota And Delta Airlines Joby’s future is still heavily invested in, so its stock could soar much higher as more companies replace their helicopters with eVTOL aircraft.

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Leo Sun It has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a feature disclosure policy.