Investors were chasing electric vehicle (EV) stocks at any price during the euphoric rally of 2021. That was followed by a sell-off in 2022 on the back of contractionary monetary policies. Last year, selected EV stories trended higher, while the industry laggards were punished. I believe 2024 will be a year, when some of the best EV stocks rally higher.

Of course, the markets are facing macroeconomic headwinds, and there will be challenges for the EV industry. However, with impending rate cuts, I am bullish on the growth outlook in the second half of the year and 2025.

It’s, therefore, a good time to buy electric vehicle stocks that can surge higher in the coming quarters. At the same time, the long-term outlook remains positive. It’s still early in terms of global EV adoption, and there will be several multibagger stories from the EV industry by the end of the decade.

Li Auto (LI)

I have discussed Li Auto (NASDAQ:LI) multiple times this year already. It’s worth noting that LI stock has skyrocketed by 67% in the last month. The stock remains undervalued, and I expect further upside in the coming quarters.

Recently, Li Auto reported Q4 2023 results, and the company crushed estimates. Li also set an ambitious goal for the year, and as positive news flows, there will be ample price action. For Q4, Li reported sales of $5.69 billion, which was higher by 133.8% year-on-year. Further, the vehicle margin was robust at 22.7%.

Another important point to note is Li reported free cash flow of $2 billion for Q4. With robust growth, I expect FCF to be more than $10 billion this year. The business is a cash flow machine, and financial flexibility is high for aggressive retail expansion. At the same time, Li can invest heavily in product innovation.

Tesla (TSLA)

While LI stock has skyrocketed, Tesla (NASDAQ:TSLA) stock has remained depressed. In the last 12 months, the stock has remained sideways amidst volatility. I would use this opportunity to accumulate TSLA stock. With some impending catalysts, the rally is likely to be strong in the coming quarters.

On the product development front, Cybertruck is due for mass production and deliveries this year. Further, Roadster and Tesla Semi are in the pipeline. There is a strong case for accelerated deliveries growth once macroeconomic headwinds wane. With potential rate cuts in the second half of 2024, I am bullish.

Last year, Elon Musk indicated that Tesla plans to cut production costs to half for its next-generation vehicle platform. Further news on this front could be good news for Tesla investors. The company is targeting emerging markets in Asia and Southeast Asia. Models with attractive pricing can be a potential game-changer. I would, therefore, expect plenty of action in TSLA stock before the year ends.

Blink Charging (BLNK)

Let’s also discuss a penny stock among the electric vehicle stocks to buy. Blink Charging (NASDAQ:BLNK) is a high-risk bet, but I believe the stock will likely trade in double digits before the end of 2025. That would imply more than 200% returns from current levels of $3.15.

Blink Charging is among the emerging players in the EV charging industry. While the industry holds potential, intense competition has been a concern. Having said that, there are two reasons to like the company.

First, its revenue growth has remained stellar. With a big addressable market in the U.S. and Europe, I expect the healthy growth trajectory to sustain. Expansion of the product portfolio will also boost growth. As an example, Blink Charging launched DC fast chargers and reported $27 million in revenue from the product in the first nine months of 2023.

Further, Blink has guided for positive adjusted EBITDA by December 2024. If the company can deliver significant EBITDA margin expansion in 2025 and beyond, BLNK stock could skyrocket.

On the date of publication, Faisal Humayun 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.