Despite short-term challenges, the electric vehicle industry’s growth prospects look promising thanks to increasing demand and favorable government policies to phase out fossil fuel-run vehicles. Given this backdrop, Wall Street analysts expect low-priced EV stocks Electric Last Mile (ELMS) and Workhorse Group (WKHS) to more than double in the upcoming months.Amid the ongoing semiconductor chip shortage, the electric vehicle (EV) industry is expected to take some time before operating at full capacity. Meanwhile, Gartner (NYSE:IT) analysts predict that carmakers will upgrade equipment and computers to extend existing vehicles' lives to satiate the overwhelming demand. Moreover, 50% of the top 10 car makers are predicted to design their chips by 2025, boosting the industry’s growth.
In addition, the recently announced EV Charging Action Plan by the Biden-Harris-Administration is generating a lot of positive investor sentiment. According to a Calibre Research report, the global EV market size will likely grow at a CAGR of 27.1% to reach 33,946 thousand units by 2029.
Given this backdrop, EV stocks Electric Last Mile Solutions, Inc. (ELMS) and Workhorse Group Inc. (WKHS), currently trading under $10 per share, could be solid additions to your watchlist. Wall Street analysts expect these stocks to double in the near term.