The electric vehicle market may have cooled recently, but this is temporary. As the economy improves, EV demand could pick up and the top EV stocks will start racing. Bloomberg expects a 22% growth in the EV market this year and believes the slowdown will lead to an acceleration in demand over the next two years.

The EV industry has shown impressive growth over the past five years, and while it may have slowed down today, it will pick up soon. Brace yourself for an adventurous ride and invest in the top EV stocks to take home significant gains. 

Tesla (TSLA)

Tesla (NASDAQ:TSLA) has repeatedly proved why it is one of the best EV makers in the industry today. The macroeconomic factors and high interest rates have hurt the automaker, but it is temporary. An improved economy will result in interest rate cuts and growing EV demand. Tesla has already established itself as an industry leader and is well ahead of the competition. 

Tesla resorted to many price cuts last year to boost the demand. This ensured steady deliveries, but profitability dropped as well as gross margin and operating margin. However, it is temporary. Looking at the bigger picture, Tesla is one of the best.

The company has already invested a considerable amount into the business, which gives it a cost advantage in terms of its manufacturing capabilities. Tesla has also opened its charging facilities for several other automakers in the industry, which will generate steady revenue in the coming years. It delivered a record 4,84,507 cars in the fourth quarter and also started delivering the Cybertruck. 

Tesla is also investing in artificial intelligence (AI) and full self-driving capabilities. It has ambitious goals, which include launching a fleet of robotaxis. Trading at $208 today, TSLA stock is down 15% year to date, and this drop is a chance to buy the stock. It is trading much lower than the 52-week high of $299 and is one EV stock you wouldn’t regret owning. The company is set to report earnings today, which might not be as impressive as expected. However, Tesla is a solid buy for the long term. 

Li Auto (LI)

There are multiple reasons to bet on Li Auto (NASDAQ:LI). It’s one EV maker that has not disappointed throughout 2023. Trading at $27 today, the stock was up 16% in the year but has lost most of its value since the beginning of January. It is down 20% year to date, but this drop is not due to any news or announcements related to the company. This is why I believe the drop is temporary.

When it comes to the financials or the delivery numbers, Li Auto has impressed investors. In the fourth quarter, it delivered a record 131,805 cars, up 184% year over year, and its cumulative deliveries for the year reached 376,030, up 182% year over year. 

The company will start deliveries of Li Mega in March, which could boost the stock. It is also breaking its records with monthly deliveries and has already hit the delivery projections for the fourth quarter. I am sure its quarterly results will be impressive. In the third quarter, it reported a revenue of $4.75 billion, up 271% year over year. 

While Li’s delivery numbers prove that its cars are in high demand and meet the consumers’ expectations, Li is now set to launch the L6 in April. The company also aims to launch three pure-electric models in the year’s second half.

Investing in the stock while it is trading at a discount could be smart, and LI stock could hit new highs this year. The company is firing on all cylinders, and it hasn’t tested the other geographical locations yet, so there is ample scope for growth. 

BYD Company (BYDDF)

BYD (OTCMKTS:BYDDF) has dethroned Tesla and is wearing its crown today. It has delivered more cars than Tesla and rapidly expanding in new markets. BYD Company could dominate globally with its wide range of cars and pricing advantage. BYDDF is one of the top EV stocks to own.

The stock is highly undervalued at $24 today and could soar higher throughout 2024. Despite reporting strong numbers, BYDDF stock has dropped 27% over the past six months. Once the EV industry improves, we could see the stock rally.

Recently, the company unveiled its AI-powered smart car system to help compete with rivals. It also plans to invest over $700 million in the world’s first all-terrain professional test drive locations across China. The EV makers’ profits soared over 100%, and they are giving stiff competition to other EV makers worldwide. It also enjoys a pricing advantage and sells its cars for as low as $11,000. 

BYD is also the second-largest battery maker in the world. It is expanding globally and has recently committed to building its sixth factory in Indonesia for an investment of $1.3 billion. It aims to become the biggest EV brand in Indonesia, where the company has an advantage over Tesla.

While Tesla is a top player in the U.S., BYD is leaving no stone unturned to achieve global domination. This site is set to be its sixth auto plant outside China, and its cars are exported to more than 50 countries. 

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.