Amidst high inflation, interest rates, and reduced EV demand, the U.S. market recorded a record 1.2 million EV sales in 2023. However, Chinese EV producers came out ahead, reporting stellar numbers and leading the way in terms of market share. For cost-conscious investors, exploring potential next-gen EV leaders is vital in 2024.

Despite temporary challenges like heightened competition, macroeconomic factors, and supply-chain issues, the EV sector presents fresh entry points. With geopolitical tensions impacting growth, undervalued EV stocks offer diversified investment opportunities beyond car makers.

Byd Co. (BYDDF)

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Warren Buffett-backed BYD Co. (OTCMKTS:BYDDF) is the world’s largest EV seller and second-largest battery maker. It achieved impressive Q4 deliveries of 526,000 EVs, marking its dominance. So, with a 100% year-over-year (YOY) profit surge, expanding international exports, and plans for new factories, BYDDF presents a compelling investment opportunity at $26.

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Despite Byd Co.’s record-breaking EV sales, surpassing Tesla (NASDAQ:TSLA) in the latest quarter, the Chinese EV maker’s shares have plummeted 45% from the 2022 peak. Also, concerns have arisen due to price wars, slowing sales growth, and increased discounts in the competitive market.

However, BYDDF’s global market presence and diverse EV lineup, including plug-in hybrids, contribute to a robust market share. Despite a recent market dip, BYDDF has strong financial indicators and impressive vehicle deliveries. And those position it as a compelling Tesla competitor, emphasizing affordability without compromising quality.

In 2023, Byd Co. achieved substantial YOY growth, selling 3.02 million vehicles and reinforcing its global standing in the expanding EV market.

Lithium Americas (LAC)

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Lithium Americas (NYSE:LAC), or Lithium Argentina, exceeded its 2023 production goal at the Caucharí-Olaroz lithium brine operation in Argentina.

By producing nearly 6,000 tons of lithium carbonate, it surpasses the initial 5,000-tonne target. The plant operates at half capacity. And ongoing efforts are boosting production and improving product quality. Also, the potassium chloride (KCl) plant is operational, with plans to increase production.

Lithium Americas presents potential for significant growth, trading at $6 per share at the time of writing. Despite challenges in the lithium sector, gradual accumulation is advisable. Keep in mind its ownership of the Thacker Pass project, the largest known measured lithium resource in the U.S. With a $5.7 billion after-tax net present value, and General Motors’ (NYSE:GM) $650 million investment and ten-year off take agreement, the current $1 billion market valuation seems undervalued.