There's no denying electric vehicles (EVs) aren't quite as common as the world initially expected them to be by this point in time. Although they exist and have a place within the automobile industry, the International Energy Administration reports that a little less than 1-in-5 vehicles sold in 2023 are powered by an electrically driven motor (including plug-in hybrids). In the meantime, consumer interest in EVs is waning here and abroad, with many people citing a combination of range concerns and sheer cost as their chief purchase roadblocks. Far too many electric vehicle stocks have performed far too poorly as a result.
While it has fallen short of early expectations, the EV industry is still growing. Bloomberg Intelligence predicts last year's worldwide EV sales of around 14 million will swell sales of 30 million in 2027, en route to 73 million EV sales in 2040. With trends working in their favor, several unprofitable EV manufacturers could grow their way out of the red and into the black, pushing their underperforming stocks much higher as a result. It's this projected growth that has investors excited about the potential for millionaire-making returns.
Here's a closer look at three potential millionaire-making EV stocks that risk-tolerant investors might want to consider.
1. Nikola
The discussion around EVs tends to focus on passenger vehicles, and for good reason -- the world buys more than 70 million such automobiles every year. EVs' underlying technology, however, isn't limited to passenger-first automobiles. In many ways, are well suited to the hauling and logistics market. That's mostly class-8 tractor-trailers (or "big rigs") which are on the road for several hours per day for several days a week. Averaging just 6 mpg of diesel fuel, one truck can burn through tens of thousands of gallons of fuel every single year.
Enter Nikola (NASDAQ: NKLA) . It makes battery-powered class-8 tractors -- as well as hydrogen-powered versions of these haulers -- that are proving efficient, and marketable. They're on par with diesel in terms of total pulling power, trip distance, and operating costs, but markedly cleaner to operate, meaning they're already meeting ever-rising emission standards. That's why the company sold another 72 of its hydrogen fuel cell trucks last quarter, bringing total unit sales to 147 after just three quarters' worth of availability. Buyers include outfits like Walmart . For perspective, roughly a quarter-of-a-million of these heavy haulers are sold every year in the United States alone, and the U.S. is only a fraction of the global market.
Oh, Nikola also monetizes the tech by supplying the hydrogen needed to power its rigs. This network of fueling stations is expanding as well, as usage of its trucks grows.
The company isn't yet profitable , which is perhaps the key reason its stock has dished out more frustration than gains since soaring in 2020 during the COVID-19 pandemic. With revenue growth this year and next year expected to exceed 200%, the losses are shrinking fast.
Analysts expect this trend to matter. Their current consensus price target over the next 12 months of $16.80 is more than 150% above the stock's present price. Keep in mind though that Nikola is dealing with some serious capital (or lack thereof) problems of late. That means there's above-average risk to consider here as well for investors.
2. Rivian Automotive
To be sure, ordinary passenger vehicles present a tremendous EV opportunity as well.
Tesla (NASDAQ: TSLA) mainstreamed the idea and, for years, was the only major player in the EV space. But good business ideas eventually draw newcomers. Founded as EV sports car maker Mainstream Motors back in 2009, the company became Rivian Automotive (NASDAQ: RIVN) a couple of years later and officially entered the EV market at scale in 2021 with all-electric pickup trucks, sports utility vehicles, and thousands of battery-powered delivery vans made for e-commerce giant Amazon .
Rivian's product focus is savvy. Conventional sedans are marketable, but consumers love their trucks and SUVs. The National Automobile Dealers Association estimates about 80% of last year's vehicle sales in the United States were light trucks -- a category that includes SUVs and pickups. These bigger vehicles also sell surprisingly well in Europe, and increasingly, even in China. For now, Rivian only manufactures and markets its vehicles in North America, but it intends to enter Europe in the foreseeable future. China and other parts of Asia have been on the radar for some time as well.
Like Nikola, Rivian isn't profitable. It probably won't be profitable in the near future either.
It is making progress to that end though, and is positioned to capitalize on the EV industry's long-term growth.
3. Toyota
Last but not least, add Toyota Motor (NYSE: TM) to your list of electric vehicle stocks that could help you eventually become a millionaire.
If it seems like Toyota hasn't shown much focus on EVs in the past, you're not imagining things. It hasn't. While it does make battery-powered and hybrid vehicles, it's not invested a ton of time and money in them. It's instead remained largely focused on traditional combustion-powered vehicles while allowing other carmakers to go to the trouble and expense of blazing the EV trail.
Now that's finally changing. With EV technology (mostly) optimized and charging infrastructure now falling into place, the company's turning up the heat. Last year's sales of Toyota EVs jumped 35%. That's huge progress even if these vehicles still only account for about one-third of Toyota's total unit sales.
However, there's a twist here. Recognizing that car owners are increasingly worried a vehicle solely powered by charged batteries just doesn't or won't meet their needs, Toyota is doubling down on hybrid vehicles that also run on conventional gasoline once their battery's charge has been depleted.
The plan seems to be working too. At a time when sales growth of conventional battery-powered EVs is slowing, Toyota saw accelerating growth from hybrid vehicles that already make up the vast majority of its EV production (up 24% last quarter). As it turns out, at least some drivers are comfortable with the idea of a vehicle that's capable of burning gas when necessary.
This stock's potential upside as an EV investment, though, isn't rooted in Toyota's capacity to pivot. It lies in the fact that Toyota is already a known and trusted name here and abroad. America's best-selling cars in 2023 (and in prior years too) include its Camry, Rav4, Tacoma, and Corolla. While some consumers might be hesitant to purchase an EV from a newer company like Rivian or even Tesla, they're more likely to be comfortable buying one from a manufacturer that's seemingly been around forever.
Should you invest $1,000 in Rivian Automotive right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Tesla, and Walmart. The Motley Fool has a disclosure policy .
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