<div id="readability-page-1">Electric vehicle (EV) stocks are among the hottest and most debated securities on the market right now. Reasons for this include the relative novelty of the technology and the broader excitement around a potential greener form of transportation. Yet, some larger macroeconomic pressures and setbacks have caused the sector to face some built-in instability. After all, due to the cost of manufacturing and developing these technologies, EVs are financially out of reach for a substantial chunk of consumers. Eventually, these issues are likely to be ironed out, as the current high-cost models serve as funding for the future of more efficient and cost-effective manufacturing processes. Yet, investing in EV automakers directly still poses risks due to the aforementioned macroeconomic pressures such as inflation and trade policies. As such, investors might want to consider taking positions in EV stocks that are part of the manufacturing supply chain. That’s because these companies can often escape the direct impact of economic hurdles by raising prices or improving supply methods accordingly. Thus, consider three EV stocks that are critical to the industry. <h2>Global X Lithium &amp; Battery Tech ETF (LIT)</h2> <div id="1950895"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: shutterstock.com/eamesBot</div>One challenge with investing in the EV supply chain stems from its geographic distribution, as many of the biggest battery companies like Contemporary Apmerex Technology and LG Energy Solution trade on Asian stock markets inaccessible to the average retail investor. Determined investors can circumvent this by buying an exchange-traded fund like the Global X Lithium &amp; Battery Tech ETF (NYSEARCA:LIT). This fund has two particular advantages. First, its year-to-date performance has left it close to its 52-week low, meaning it now trades at around $39 a share. This accessible price allows investors to get broad access to the aforementioned foreign battery stocks without having to take on the individual risk for each one. Furthermore, the fund has holdings in lithium companies and automakers as well, meaning it represents a vertical slice of the EV industry as a whole. Thus, this ETF could be a good starting point for investors who want to profit from the industry. <h2>EnerSys (ENS)</h2> <div id="2074892"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: ESB Professional / Shutterstock.com</div>While many investors focus directly on the finished EV product like a vehicle or a battery, it’s important to remember the depth of electrical engineering technology needed to make the industry viable. This behind-the-scenes market is where battery and power distribution giant EnerSys (NYSE:ENS) shines. That’s because, for the last two decades, the company has specialized in researching and developing technologies like energy storage, power electronics and software all related to the efficient transfer and management of energy across various devices. One successful part of the company’s energy management ventures has been its acquisition strategy. Its leadership has a tremendous ability to identify a good fit for its product portfolio and acquire it. An example of this is its recently completed purchase of Bren-Tronics. While Bren-Tronics is primarily a defense industry supplier, its proprietary knowledge of high-efficiency lithium power transfer technologies could make it exceptionally useful. It can improve ENS’s other products like charging stations and battery management modules. <h2>ON Semiconductor (ON)</h2> <div id="1408358"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Shutterstock</div>Critical to both the traditional and electric vehicle markets, ON Semiconductor (NASDAQ:ON) has seen its share value struggle since an earnings miss put it on a broader downtrend in October 2023. At its current valuation, however, the company exhibits an attractive 14.32x price-to-earnings ratio while still being a major provider of electrification technology to the broader EV market. While its first-quarter earnings report for 2024 did not provide much excitement to investors as its revenue decreased 5% year-over-year and its gross margin decreased by 90 basis points, the company’s position in the EV market still makes it a viable investing opportunity. One new product line to keep an eye on is its direct current, Ultra-Fast vehicle charging suite, which aims to improve and address the $1.1 billion charging market as it is projected to grow by a 26% compound annual growth rate by 2027. While its financial stumbles might put some investors off, ON’s products and broad diversification make it one of the best EV stocks to consider this summer as the industry hits its stride. On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article. Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.Automotive, Consumer Discretionary, Electric Vehicles </div>

IDRV

KARS

CP00043

DRIV

Electric vehicle (EV) stocks are popular due to the potential for greener transportation, but face instability due to manufacturing costs. Investing in EV stocks in the manufacturing supply chain can mitigate risks. Consider the Global X Lithium & Battery Tech ETF (LIT), EnerSys (ENS), and ON Semiconductor (ON) as promising options. LIT offers access to foreign battery stocks at an accessible price. EnerSys specializes in energy transfer technology and acquisitions. ON Semiconductor, despite recent financial setbacks, is a major provider of electrification technology in the EV market. These stocks present investment opportunities in the EV industry. (Words: 100)

3 EV Stocks That Could Make Your Summer Unforgettable