Electric vehicle makers show their progress and success through the monthly delivery numbers and it allows investors to gauge the company’s ability to meet the financial targets. As we await the first monthly delivery numbers of the year, it is time to consider the stocks that could report impressive numbers and solid financials.

With the ongoing earnings season, the stock market will be volatile, but this is also the best time to load up on stocks trading at a discount. If you are expecting the EV industry to pick up this year, it is time to consider these three EV stocks for January as they gear up to report this month’s delivery numbers. 

EV stocks for January: Li Auto (LI)

One of the best EV stocks for January, Li Auto (NASDAQ:LI) has already impressed the market with strong delivery numbers. It aimed to end the year with over 50,000 deliveries and managed to achieve the same. Li hit 40,000 car deliveries in October for the first time and the momentum hasn’t stopped since then.

In the fourth quarter, the company reported 131,805 deliveries, which was up 184% year-over-year, and the December deliveries stood at 50,353 cars. The company’s cumulative deliveries for the year came in at 376,030, up 182% year-over-year. It has already met the deliveries as per the projections and this means the financial results will beat expectations. 

The company will start the deliveries of Li MEGA from March and this will boost the stock. However, due to the recent slowdown in the EV industry, LI stock has dropped 20% year-to-date and is trading for $27, significantly lower than the all-time high of $47. The company is firing on all cylinders and is one of the top EV makers in China.

Its growing deliveries are proof that the company is doing something right and consumers are enjoying Li cars. Let’s not forget that it hasn’t started exporting nor has it entered any other geographical markets which means there is enormous potential to grow. 

While EV demand may have slowed, I still think Li Auto will report better deliveries than many of its competitors, and it is one stock that is set to benefit from the EV hype. The company is thriving amidst the cutthroat competition in China and it is here to stay. LI stock could double in the coming months. Buy it while it is trading at a huge discount. 

BYD Company (BYDDF)

Tesla’s (NASDAQ:TSLA) rival BYD (OTCMKTS:BYDDF) has been on my buy list for a long time, and it continues to beat its records and impress investors. The company dethroned Tesla with the delivery numbers and sits at the top today. It enjoys a solid market position in China and sold 526,409 cars in the fourth quarter while Tesla reported sales of 484,507 cars. 

Besides being an industry leader in the EV space, the company is also the second-largest EV battery supplier in the world. There are several reasons why BYD company is Warren Buffet’s favorite, and the stock looks highly undervalued to me. Trading at $23 today, the stock has so much room to grow, and looking at the company’s long-term potential, it could double in the coming years. 

BYD also has a strong global market and exports to several countries. While it is not as popular in the U.S., it is very strategically growing its market share in less developed countries. As the EV market improves, BYD Company will be the first one to gain. The company is constantly entering new markets while ramping up sales and this means it will be shielded from the volatility in the EV industry in any particular country. 

It has not only managed to ramp up production but also reported a profit while doing so. As the company begins to start achieving better efficiencies in operations, we could see it report excellent numbers. However, it has already reported a preliminary net income of $4 billion for 2023, missing estimates, and it also expects the fourth quarter income to be lower than the previous year due to the slowdown in EV sales. I believe the stock is trading at a discount and is a solid buy. 

XPeng (XPEV)

A smaller player as compared to the other two mentioned here. Xpeng (NYSE:XPEV) hasn’t had an easy ride but it has performed better than several other EV makers over the past few months. One reason to bet on the stock is its range of EVs and the advanced technology it uses. The company is working on the expansion of the product lineup and is also a player in the flying car segment. While it will take time for it to establish a strong name in the competitive industry, it could still gain an edge this year.

It reported a record deliveries of 20,115 units in December, up 78% year-over-year, and the quarterly deliveries came in at 60,158 units, up 171% year-over-year. It also plans to expand more into the European markets this year.

Trading at $8 today, the stock is down 36% year-to-date due to the weakness in the EV industry, and buying the stock below $10 could be a very smart move. Do not expect the stock to soar immediately. While it may take time to show gains, it will not disappoint. The stock was as high as $23 in July but has lost value over the past few months. 

It posted mixed results for the third quarter but had an upbeat guidance for the fourth quarter, and it has been delivering over 20,000 cars for the past three months straight. This is another stock that can double as the EV sector improves. 

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.