China now accounts for 60% of EV sales worldwide. Some of its leading stocks have ramped up their deliveries in 2024. This clears the path for a more international focus for operations. 

Despite this, the performance of some of China’s strongest EV stocks has been hampered. Blame it on a series of headwinds due to a weakening economy and extreme market competition. 

While the S&P 500 had grown at an impressive rate in 2023, $100 invested in the Chinese stock market at the beginning of the year would’ve been worth just $70 by the end. China’s ongoing economic issues have been intensified by a severe housing crisis, slowing productivity, and a difficult post-pandemic recovery. 

For EV stocks, fierce levels of competition has forced prices down as leading stock’s battle for attention. So why should we be looking at Chinese electric vehicle stocks at all? 

The answer is that their ongoing issues are factored into their price, paving the way for a significant discount for stocks that are still highly innovative in an emerging market. 

The global EV market is expected to reach a value of nearly $1 trillion by 2030. This will mean growth at a CAGR of 13.7% during this timeframe. The discounted stocks of today have a bright future ahead of them if they can continue to realize their potential. With this in mind, let’s explore three key EV stocks that are set for a prosperous future.

Li Auto (LI)

When discussing China’s EV stars, it’s impossible to ignore the performance of Li Auto (NASDAQ:LI). Not only is Li Auto one of China’s biggest EV players, but also it recorded more than 30% gains in 2024. This was due to it becoming the nation’s first major EV startup to become profitable. 

Astonishingly, Li’s Q4 2023 gross profit of around $1.38 billion represents an increase of 174.4% on Q4 2022. This impressive growth was made possible through the delivery of 131,805 vehicles during the quarter. This made the total deliveries in 2023 land at 376,000. 

Now, 2024 appears set to be a watershed year for Li Auto, with the long-awaited launch of the company’s flagship MEGA MPV recently. LI undoubtedly one of the safest EV stocks in China right now. And, the performance of the MEGA is likely to determine whether Li has a good year or great year. 

With the added news that Li intends to capitalize on its growth by entering global markets in 2024 beginning with the Middle East, it’s clear that this is a stock worth tracking regardless of China’s economic difficulties. 

NIO Inc. (NIO)

While Li Auto has experienced a prosperous start to 2024, NIO (NYSE:NIO) has tumbled more than 30% in the opening two months of the year. However, the stock has reached far greater heights in the past. It still has an impressive $12 billion market capitalization to underline its industry presence. 

So, why should investors look to a stock that’s been struggling in recent months? Well, NIO’s results have been encouraging despite widespread economic uncertainty in China. For Q3 2023, the company’s revenues were in excess of $2.3 billion, representing a 46% increase year over year (YOY). The same was true for the year prior, where a 37% increase in revenue was recorded. 

In addition to this, NIO is ramping up its deliveries in 2024. It delivered 8,132 vehicles in February, with 4,765 smart electric SUVs and 3,367 consisting of smart electric sedans. 

BYD Company (BYDDY)

There are few stocks in China that are proactively attempting to out-innovate their rivals than BYD Company (OTCMKTS:BYDDY). Nothing is more effective at downplaying China’s economic concerns than the announcement of a supercar. So, that’s just what BYDDY did at the beginning of 2024 with the debut of a 1.68 million yuan ($233,450) high-performance electric supercar that’s set to rival the likes of Ferrari and Lamborghini. 

Also, BYD Company retains a focus on affordability, and in recent days announced the Seal U. This vehicle is set to become the company’s first plug-in hybrid to go on sale in Europe, boasting an electric-only range of over 60 miles. According to its Q4 earnings preview, BYDDY’s net profit attributable to shareholders in 2023 is expected to fall between 29 billion and 31 billion yuan ($4.03-$4.31 billion). That represents a YOY increase of 74 to 86%. 

Additionally, BYDDY’s chairman, Wang Chuanfu, has proposed that they buy back twice as many shares to help boost stock price moving into 2024. This underlines a commitment of care for the company’s stock amid testing economic circumstances. It’s this level of growth and care within the company that offers optimism for future prosperity while still sitting at a discounted price, for now.

On the date of publication, Dmytro Spilka 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.