Industry experts are expecting a lot from the electric vehicle market. Studies suggest that by 2030, EVs will represent around 60% of global vehicle sales, which tells us that there is room for growth that any investor can be a part of. While the industry may be a tough market to dominate, some companies show tremendous potential. All that’s left to do is find the best ones. So, here are three underrated EV stocks that might fuel portfolio growth. 

Rivian (RIVN)

Our first choice is no stranger to “best EV stocks to buy” lists. Rivian (NASDAQ:RIVN) offers an electric two-row pickup truck consumer vehicle, the R1T and a three-row sport utility vehicle (SUV), the R1S, for the consumer market. The company also offers the Rivian Commercial Vehicle (RCV) platform for the commercial market. Rivian also provides Amazon’s Electric Delivery Vans (EDV) and has recently ended its exclusivity agreement with the retail giant: they are now free to offer EDVs to other commercial customers. The company’s other services include insurance, financing, maintenance and FleetOS solutions that unify full fleet telematics. Apple’s previous vice president for hardware engineering recently joined RIVN, strongly indicating a concerted push to improve its self-driving functionality. 

Rivian’s latest quarter reported $1.337 billion in revenue, a significant increase from $536 million in the prior year quarter. This quarter’s 15,564 vehicle deliveries mainly drive the growth. Meanwhile, the quarter ended with an overall net loss of $1.37 billion—a 20% improvement from last year’s $1.77 billion loss. That said, RIVN is making strides in reducing material and production costs, leading to narrowing losses and potential profitability shortly.

The company also maintains strong liquidity with cash, cash equivalents and short-term investments summing up to $9.13 billion. While Rivian is experiencing short-term growth challenges, it’s better positioned than many of its competitors through its operational efficiency and improving metrics. Even Wall Street analysts rate it as a “Strong Buy” with a high target price of $40.00. While others may not agree, in our view, it is worth watching as a potential EV stock to buy.

NIO (NIO)

China’s premium EV market is seeing intense competition, and one of the most promising companies to throw its hat into the ring is NIO (NYSE:NIO). NIO is a China-based holding company researching and developing premium smart electric vehicles. Its primary vehicle products include ES8, ES6, EC6 and ET7. The company also developed autonomous driving technologies and battery-swapping technologies for its smart EV vehicles. NIO previously announced its new executive flagship, ET9, targeted at high-end business users. 

NIO’s latest quarter results showcased a robust 75.38% vehicle delivery growth, from 31,607 to 55,432 YoY. The company’s vehicle margin also increased to 11%. As a result, total revenue surged by 46.60%, reaching 19.07 billion RMB ($2.61 billion).

Investors interested in NIO might be happy to learn that the company has been making strategic moves to boost its growth further. These initiatives include launching the All-New EC6, offering convertible senior notes, and partnering with companies like Geely Holdings—all aimed to strengthen its position in a very competitive EV market.

The company’s efforts have been noticed, earning it a “Buy” recommendation from analysts. To be sure, NIO’s resilience, continued product development and dominant position in China’s premium electric vehicle market make it a compelling choice for any shortlist of underrated EV stocks to buy.

Xos (XOS)

EV manufacturers aren’t the only ones to benefit from increased adoption. Case in point: Xos (NASDAQ:XOS) is a company that designs and manufactures Class 5-8 battery-electric commercial vehicles that travel around 200 miles per day, a great value proposition for any EV producer. In addition, the company also offers charging infrastructure products and fleet management software. This helps commercial fleet operators have a superior experience than traditional counterparts. Its Fleet-as-a-Service offering helps owners transition from conventional internal combustion engine vehicles to battery-electric vehicles and adapt to the market’s growing demand. The company has been recognized as one of the fastest-growing companies in North America based on Deloitte’s Technology Fast 500. 

XOS’s last financial report showed impressive product delivery growth for the quarter, reaching 105 units (104 vehicles & 1 powertrain) and highlighting its accelerating momentum in the electric vehicle market. While the company ended the quarter with a $14.10 million loss, this greatly improved from last year’s $19.96 million net loss. XOS also achieved a robust 52% revenue growth YoY, reaching $16.7 million. In addition, the company reported a strengthened financial position with $23.40 million in cash & cash equivalents, while inventories ended at $48.90 million. This demonstrates its resilience and potential for ongoing expansion. XOS’s 2023 full-year guidance anticipates 250 to 350 unit deliveries and revenue from $36.3 to $54.7 million. With the rapidly growing electric vehicle industry, XOS offers investors a chance to capitalize on one of the best underrated EV stocks in the market.

On the date of publication, Rick Orford 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.