Despite the recent pullback, the electric vehicle industry is growing globally. Several companies are trying to own a piece of this market, and while Tesla (NASDAQ:TSLA) is already a leader, several others are trying to grab the top spot. This has led to those article on the top EV stocks to buy.

It is expected that the global electric vehicle demand will grow significantly between 2024 and 2027, and if you are looking to invest in stocks that have long-term growth potential, do not leave EV stocks out of your portfolio. And if you are looking to buy only one stock in December, you must pick from one of these three best EV stocks.

Li Auto (LI)

I have always been a fan of the execution and conviction with which Li Auto (NASDAQ:LI) has made a place for itself in the competitive EV industry. The company has impressed investors with strong growth in its delivery numbers, and it aims to deliver over 40,000 cars this month and in December. At the end of October, the company had achieved cumulative deliveries of 284,647. 

The company announced the commencement of mass production and delivery of its first fully electric EV in February, and this could be a game changer for the business. It already has over 10,000 pre-orders, which could help it achieve a larger market share. 

Li Auto plans to expand its product lineup over the years, which will impact the deliveries. Its cars are extremely popular in China, and Li will remain in demand with more people entering the middle class. The company’s third-quarter results prove it is firing on all cylinders. It saw a 271% rise in revenue year over year and a 196% rise in vehicle deliveries yearly. Most importantly, the company went from a negative cash flow to a positive cash flow this quarter, which is nothing but impressive. 

Trading at $39 today, the stock is up 89% year to date, and I believe this momentum will continue in the coming months. If you wait for the stock to drop, you might miss a chance to own it. Once the company began mass production of the cars, we could see the stock soar to new highs since the pre-orders prove that consumers eagerly wait for Li to start delivering Li MEGA. Buy LI stock before it skyrockets in the coming months. 

BYD Company (BYDDF)

BYD Company (OTCMKTS:BYDDF) is the biggest Tesla competitor and is very close to beating its delivery numbers. The company started as a battery maker and has now built an impressive EV business. It is also the second-largest battery maker in the world today. 

It enjoyed a record-breaking third quarter and delivered 2,070,255 cars a year to date, a whopping 76% rise from the previous year. The company also wants a strong gross profit margin, and I believe it is only getting started. Its delivery numbers prove consumers love BYD cars, and the demand is soaring. The EV maker recently launched its Han sedan in the Middle East and is also mulling an investment in the Pakistani EV sector. 

The biggest advantage of investing in BYD Co is its global presence. The company does not limit its presence to China and is exporting to several other countries. This will work as a catalyst in the long term. Tesla has suffered due to rising costs and had to resort to price cuts, but BYD Co has managed to impress investors with its financials, which is not a short-term win. 

The company will have production commence at its Thailand factory in 2024 and plans to build a new plant in Brazil. Besides that, it already has a presence across Australia, Singapore, India, Japan and Malaysia. BYDDF stock is exchanging hands at $28 and looks highly undervalued.  

The company is building market share very quickly. BYD Co. is in line with the production and deliveries and has a strong balance sheet. You will not regret buying the stock and it will pay off in the long-term.

XPeng (XPEV)

Next on my list of the top EV stocks is XPeng (NYSE:XPEV). While the company did suffer during the China lockdowns and supply chain issues, it is worth noting that it has bounced back now. As a strong player in the Chinese market, XPeng is steadily expanding its market share and has the potential to grow tremendously from here. Trading at $17.71 today, the stock is up 73% year to date.

The company did report disappointing earnings, but it has made some progress on the product front. It recently unveiled the new Smart EV model, XPeng X9, a seven-seater car. There is high excitement for this car, which is priced at $54,000, and this news gave a boost to the stock. The management has high hopes for this car, and while the demand for EVs is still rising, we could see the stock pick up. 

Another reason to bet on this stock is its growing presence across the European markets. It currently has a presence in the UK, France and Germany. This gives the company stability whenever there is a drop in Chinese sales. It reported deliveries of 40,008 vehicles in the third quarter, up 72% quarter over quarter and while it is much lower than the deliveries reported by Li, it is still showing an improvement from the previous year. 

While there are a few hurdles for XPeng, I still believe the EV maker has the potential to make it big in the industry. 

On the date of publication, Vandita Jadeja did not hold (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.