Electric vehicles (EVs) will continue to transform the dynamics of the global automotive industry in 2024. Although a recent weakness in the American carmaker Tesla’s production and delivery growth numbers, due mainly to big declines in its Model 3 and Y figures, gave bears a chance to question the future of EVs, the long-term prospects for the EV segment still remain bright with more consumers willing to opt for eco-friendly and cost-effective cars.
Moreover, growing awareness about the negative impact of global warming on the environment is encouraging many large countries across the globe to make strict emission regulations, which are likely to boost EV demand further in the years to come.
As the EV industry expands, so do the opportunities for TSX investors to capitalize on this trend. Canada has several companies that are involved in various aspects of the EV value chain, from battery production to vehicle manufacturing to technology infrastructure. If you want to benefit from the upcoming EV revolution, here are two top Canadian EV stocks that could power your portfolio in 2024 and beyond.
My first Canadian EV stock pick in 2024
Magna International (TSX:MG) is my first Canadian EV stock pick for 2024. This Aurora-headquartered automotive suppliers and mobility company currently has a market cap of $18.5 billion as its stock trades at $64.64 per share with around 17% year-to-date losses. At this market price, MG stock also offers a decent 4.1% annualized dividend yield and distributes these payouts every quarter.
Magna provides a range of products and services to various automakers globally, including EV components, such as electric drive systems, battery packs, power electronics, and charging solutions. In 2021, Magna partnered with LG Electronics to form a South Korea-headquartered joint venture called LG Magna e-powertrain to develop and manufacture e-motors, inverters, and on-board chargers for EVs.
Last year, Magna expanded this partnership by announcing the joint venture’s new manufacturing facility in Miskolc, Hungary. The facility is expected to be to be completed in 2025 and operational by 2026 and aims at supporting the growing demand for electric vehicle components such as e-motors, with future plans to produce inverters and on-board chargers.
Besides this partnership, Magna also provides various fully electric drive solutions and electrified platforms to help automakers transition to the electric vehicle era, which could accelerate its financial growth in the years to come and help its share prices soar.
My second Canadian EV stock pick in 2024
Besides Magna, BlackBerry (TSX:BB) could be another top Canadian EV stock to consider in 2024, which I find undervalued after sliding by around 62% over the last three years. It currently has a market cap of $2.3 billion as its stock trades at $3.94 per share.
While BlackBerry is neither a mobility company like Magna nor an EV maker like Tesla, its software solutions, like the QNX platform, are widely used by many automakers for their infotainment, security, and connectivity needs.
Recently, the company has developed a machine learning and artificial intelligence-powered vehicle data platform called IVY, which enables real-time data collection and analysis from in-vehicle sensors and devices in connected cars.
The demand for such advanced technological solutions is likely to grow rapidly as the EV industry expands over the next decade. That’s one of the reasons why I think BlackBerry is a really attractive Canadian EV stock to buy in 2024, which has the potential to yield outstanding returns in the long run as its financials benefit from the increasing adoption of its software platforms by automakers.
