Inflation is slowly cooling, and global markets are starting to pick pace again. This means savvy investors need to start making their moves. The electric vehicle industry is hot and will be at the forefront throughout the decade. Several EV stocks went through a deep correction in 2022, but it does look like they are recovering now. The long-term case for EV stocks remains strong, and if you believe in the potential of EVs, it is time to pick the stocks that show long-term growth potential. There was a time when we only knew of Tesla (NASDAQ:TSLA) as an EV maker, but today, multiple automakers are challenging the position of Tesla and are here to grab a large market share.

EVs are projected to make up about 60% of total vehicle sales worldwide by 2030, and unit sales could reach 16.2 million by 2027. Governments worldwide are spending heavily on EV adoption, and the industry is ready for huge growth in the coming years. When it comes to EVs, the demand will only rise, which means now is the ideal time to pick some of the top EV stocks while trading at a discount. Let’s take a look at the 3 EV stocks that are crushing Tesla in China.

ChargePoint (CHPT)

At the top of my list is ChargePoint (NYSE:CHPT). While it is not an EV maker, it is a company that makes the transition toward EVs possible. There cannot be an EV revolution without lithium and this is where ChargePoint plays a huge role. The company builds EV charging infrastructure, and governments worldwide are working to have a robust infrastructure. Only when the right infrastructure is in place will we see a higher EV adoption. The United States aims to have 500,000 EV chargers by the end of this decade and has already set aside $7.5 billion for this goal. With the growing demand for charging stations, there will be a rise in demand for lithium, and ChargePoint is set to benefit.

CHPT stock is trading below $10 today, an ideal entry point. It is down 42% in the year and is much lower than the 52-week high of $19. The company is already partnering with EV makers to support EV penetration, and it saw a 93% jump in revenue in the fourth quarter. It recently signed an agreement with ALD Automotive to build a new EV charging business in Europe.

JPMorgan recently called ChargePoint a preferred name in the charging space and has an overweight rating for the stock. The analyst, Bill Peterson, is confident about the company’s position and the path toward profitability.

BYD Company (BYDDF)

Whenever we talk about crushing Tesla, one company that always comes to mind is BYD Company (OTCMKTS:BYDDF). It is a Tesla killer in every sense and is growing faster than Tesla. Backed by Berkshire Hathaway (NYSE:BRK-ABRK-B), the company holds a 30% share in China’s EV market and has targeted the market with its price point. It recently shared images of a new model called Seagull, an affordable EV hatchback for city dwellers. BYD stock is trading for $28 today and is up 12% year to date.

The EV maker delivered 911,141 EVs and 946,238 hybrids last year, a total of 1.86 million deliveries in a year, while Tesla handled 1.3 million deliveries in the year. BYD is a clear winner if we look at the numbers, and it has established itself as a solid player in the industry. After setting on a fierce price war with Tesla, BYD could still manage to win and reported better-than-expected March delivery numbers.

The company is profitable, with both its top and bottom lines growing. To have control over the supply chain, it invests in lithium mines and is also the second-largest producer of lithium batteries in the country. This way, it ensures that supply chain issues do not disrupt production. It reported triple-digit growth in the recent quarter and could deliver another solid quarter this year. BYD stock is supercharged and ready for a solid 2023.

Nio (NIO)

Chinese EV maker Nio (NYSE:NIO) was shining bright during the pandemic, but the China lockdown and supply chain issues led to a slowdown in growth. The company delivered triple-digit returns during the pandemic and generated massive revenue growth, but it didn’t last long. While many think that Nio is risky, I believe in its long-term growth potential. NIO stock is trading below $10 today, but it could pick pace in the second half of the year. The EV maker is expanding globally and has a solid product lineup planned for the year, which will benefit it in the second half of 2023.

The company enjoyed a 25% sales bump in 2022 and is expected to double sales to 250,000 EVs in 2023. It might seem like an ambitious target, but NIO stock could soar and hit new highs if the company manages to hit the number. In the fourth quarter, the company delivered 40,052 vehicles; in the first quarter of 2023, it delivered close to 31,000 vehicles, which aligns with the projections.

In the current situation, NIO stock may seem like a risky bet, but it could be rewarding in the long term. My InvestorPlace colleague Faizan Farooque believes that NIO stock has a 135% upside potential.

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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