3 EV Stocks With Fair Value Discounts Up To 64%

Oil prices recently moved above $111 a barrel after fresh attacks on Saudi energy facilities and renewed risks around Iran. Higher fuel costs keep the spotlight on cleaner transport, as drivers and businesses look for ways to reduce exposure to volatile pump prices. This article breaks down three electric vehicle focused stocks from our cleaner transport screener that could help you position your portfolio for this long term shift.

The three EV focused stocks that follow are only a small sample from this cleaner transport idea. The wider screen surfaces 45 more manufacturers, battery specialists, and component players with equally compelling narratives that are not covered below. To identify and analyze those additional opportunities directly, head into the EV Stocks screener.

DENSO (TSE:6902)

DENSO is a global auto parts supplier with a growing focus on EV powertrain systems and battery thermal management components, while still serving gasoline, diesel and hybrid platforms. The group generates about ¥4,500.8b from Japan, ¥2,087.0b from North America and ¥2,007.2b from Asia, and has a market value near ¥4,666.9b.

DENSO provides direct exposure to the hardware that enables electric vehicles, including traction inverters, e-axles, heat pump HVAC and battery cooling. Its EV component footprint may be of particular interest to investors who are evaluating companies involved in vehicle electrification and associated thermal management systems.

For investors weighing that electrification and thermal management angle, start with the 3 key rewards and 1 important warning sign to see what could accelerate DENSO or hold it back.

Contemporary Amperex Technology (SZSE:300750)

Contemporary Amperex Technology is a pure play on the EV battery theme, with its business built around designing and producing power battery systems for passenger and commercial electric vehicles, alongside energy storage and recycling services. This gives investors direct exposure to the electrification supply chain.

Contemporary Amperex Technology generates CN¥582,767 million from batteries and battery systems, reflecting a highly concentrated business model, and carries a market value of about CN¥1,028.3 billion.

For a closer look at how Contemporary Amperex Technology fits into the EV Stocks screener, it helps to hear how one analyst frames the main risk that can sit in the background while the battery business scales.

"Risks: Geopolitical tensions between the US/EU and China, and potential protectionist measures."

What happens to Contemporary Amperex Technology’s long term pricing power if one unseen competitive pressure shifts faster than expected?

That unseen pressure is only part of the story. The full narrative for Contemporary Amperex Technology shows how Contemporary Amperex Technology could still leverage scale, partners and tech shifts.

Li Auto (LI)

Li Auto is a premium smart EV maker focused on multi-purpose vehicles and SUVs, giving you pure exposure to the EV manufacturing theme. The group generated about CN¥104.8b from auto manufacturing in China and has a market value near US$11.7b.

Li Auto matters for this EV Stocks screen because it is aiming to pair premium electric SUVs with hardware and infrastructure that can keep drivers on the road without range anxiety. This is an area where long-term demand could potentially build most consistently.

"The rapid buildout of Li Auto's ultra fast 5C supercharging network, now at 4,141 stations and over 22,800 stalls across more than 300 Chinese cities, directly supports BEV adoption and usage and is likely to influence future vehicle sales volumes and associated revenue."

What happens if a single assumption about how quickly higher priced EV buyers accept this broader product and technology push turns out to be wrong?

If that assumption is what matters most to you, read the full narrative for Li Auto to understand how Li Auto’s charging buildout, margins and risks fit together.

Seeking Fresh Alternatives Beyond EVs?

Fresh themes move quickly while attention chases yesterday’s breakout. Use this window before the crowd catches on, while it matters and prices are still settling, then act with care.

• Spot cash generative companies that still look overlooked by screening a curated 14 high quality undervalued stocks before that value gap is reflected in the market.
• Track the grid upgrade story from a different angle by reviewing a hand picked 42 power grid technology and infrastructure stocks while these ideas remain less widely followed.
• Explore the data center and chip buildout indirectly by scanning a focused 55 AI infrastructure stocks before any potential changes in capital flows alter current pricing.

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