3 Top EV Stocks to Buy in September

Key Points

• BYD will remain the world’s top EV maker for the foreseeable future.

• QuantumScape’s solid-state battery designs could disrupt lithium ion batteries.

• EVgo is still rapidly expanding its EV charging network.

• 10 stocks we like better than BYD Company ›

September usually isn't a great month to buy stocks. It's historically the worst-performing month of the year due to a wide range of factors -- including new bond issuances pulling investors away from equities, portfolio readjustments after the summer, and behavioral biases.

But assuming that "September effect" happens again, investors should heed Warren Buffett's advice and "be greedy only when others are fearful." One sector that already has plenty of fear baked into its valuations is the electric vehicle (EV) market, which ran out of juice over the past three years. The saturation of the early adopter market, rising interest rates, the reduction of government subsidies, and the slower buildout of EV charging networks all chilled the market and drove many investors away from EV stocks.

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That rotation is creating some promising buying opportunities for contrarian investors who can tune out the near-term noise. Three of those underappreciated EV stocks that are still well below their all-time highs are BYD (OTC: BYDDY), QuantumScape (NYSE: QS), and EVgo (NASDAQ: EVGO).

BYD

BYD, China's top automaker, eclipsed Tesla as the world's biggest EV maker in 2022. From 2020 to 2024, its annual vehicle sales surged tenfold from 427,302 units in 2020 to 4.3 million units, while its revenue rose fivefold to 777 billion yuan ($109 billion).

BYD scaled up its business much faster than its peers because it manufactured its own batteries, motors, chips, and power electronics. That vertically integrated business model helped it control its production costs and avoid supply chain constraints. It also claims its own lithium iron phosphate "Blade" batteries are cheaper, safer, and more power-efficient than traditional lithium ion batteries. That scale enabled BYD to cut its prices to fend off its competitors and grow its dominant share of China's fragmented EV market.

From 2024 to 2027, analysts expect BYD's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at a CAGR of 15% and 11%, respectively. Its stock still looks dirt cheap at 7 times this year's adjusted EBITDA, presumably because the near-term concerns about tariffs, trade wars, and the persistent pricing war in China's EV market are compressing its valuations. But as those headwinds dissipate, BYD's stock will likely command a higher valuation and soar higher again.

QuantumScape

QuantumScape develops solid-state lithium metal batteries, which are powered by solid electrolytes instead of the liquid electrolytes used in lithium ion batteries. That difference makes them denser, safer, and more resilient than lithium ion batteries -- but they're also much more expensive to produce. That's why they've only been used in small devices like pacemakers and wearables instead of consumer electronics and EVs.

QuantumScape believes it can change that perception with its QSE-5 batteries for EVs, which boast an energy density of more than 800 Wh/L (watt hours per liter) and can be charged from 10% to 80% in less than 15 minutes. By comparison, the lithium ion batteries in most EVs have an average density of 300-700 Wh/L with a fast charging time of 20 minutes to an hour.

QuantumScape has been co-developing its batteries with Volkswagen over the past decade, and it plans to finally start generating revenue in 2026 as it initiates its first field tests. It plans to license its technology to other automakers instead of manufacturing its own batteries.

QuantumScape is still a speculative stock, but analysts expect its revenue to jump from just $5 million in 2026 to $62 million in 2027 as it scales up its business. It isn't cheap at 72 times its projected sales for 2027, but it could have plenty of room to grow over the next decade as its core market expands.

EVgo

EVgo is a major builder of EV charging stations in America with 4,350 charging stalls serving 1.5 million customers at the end of the second quarter of 2025. Its total number of charging stations has expanded over 50% as its customer base grew by more than 150% since the end of 2022. That explosive growth was driven by its partnerships with GM, Berkshire Hathaway's Pilot Flying J, and Chevron, as well as government incentives for EV chargers. Last December, it secured a $1.25 billion loan from the U.S. Department of Energy to deploy 7,500 new fast-charging stalls by 2029.

From 2024 to 2027, analysts expect EVgo's revenue to grow at a CAGR of 32%. They also expect its adjusted EBITDA to turn positive in 2026 and more than double in 2027. Based on those estimates, EVgo looks dirt cheap at just 1.5 times this year's sales.

EVgo's valuations are likely being squeezed by the softness of the U.S. EV market and competition from other EV charging station builders like ChargePoint and Tesla. But assuming there's plenty of room for all three companies to expand their networks without trampling each other, EVgo could eventually command a much higher valuation.

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Leo Sun has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, Chevron, and Tesla. The Motley Fool recommends BYD Company, General Motors, and Volkswagen Ag. The Motley Fool has a disclosure policy.