The future of the U.S. economy appears promising, with experts like Jan Hatzius from Goldman Sachs expressing confidence in a soft landing, despite inflation concerns. Consumer spending and job markets have remained robust, easing worries of a downturn. This positive outlook is crucial for President Joe Biden’s economic agenda, as historical trends suggest that recessions during reelection years can be detrimental. Meanwhile, the global electric vehicles market was valued was at $500.48 billion in 2023, and is expected to reach $1.58 trillion by 2030. This growth is driven by attractive government policies and incentives intended to boost the sales of electric vehicles. These are three stocks that could be the next Tesla (NASDAQ:TSLA). If you buy these now, you are locking in profits for years into the future.

BYD (BYDDY)

BYD (OTCMKTS:BYDDY) is a Chinese automaker that manufactures battery electric vehicles and plug-in hybrid electric vehicles. BYDDY currently trades at $55.31, up 7.80% YOY, and holds a unanimous “buy” rating from Wall Street analysts. 

In Q3 2023, the Chinese EV giant maintained its domestic market dominance, reporting record profits of $1.42 billion, up 82.16% YOY. The company’s gross margin of 22.12% for the third quarter also hit a record high for the first time since 2020. With 2,079,638 NEVs already sold in the first three quarters, BYDDY’s financials are strong and impressive.

BYD Company is also pursuing aggressive expansion plans. Recently, the company announced a $1.3 billion investment in Indonesia to build an electric car factory. This move, in combination with on-going factory construction in Thailand, Brazil, Hungary and Uzbekistan, will greatly increase BYDDY’s global presence. The automaker has experienced immense success in Southeast Asia as the top-selling EV brand after only recently entering its market. With the company committed to growth, there’s no doubt that BYDDY will experience future prosperity.

Li Auto (LI)

Li Auto (NASDAQ:LI) develops, manufactures and sells premium electric vehicles in China. The stock is up 49.21% YOY, and has a median price target of $55.93, a 64.13% increase from its current price. 

In Q4 2023, Li Auto beat analyst forecasts, reporting YOY increases of 133.8% in sales and 2,068.2% in net income. The company is also highly profitable, boasting a levered FCF margin of 35.94%. With total deliveries for 2023 increasing 182.2% to 376,030 vehicles, Li Auto’s financials are robust and healthy. 

Furthermore, the company recently launched its first battery electric vehicle model, the Li Mega MPV. It also updated its current L-series vehicles. The Li Mega showcases impressive technology and specifications that underscore the company’s intention to redefine China’s luxury EV market. CEO Li Xiang also announced that Li Auto would invest at least RMB 6 billion to build more than 5,000 supercharging stations over the next few years, highlighting its commitment to growth.

Joby Aviation (JOBY)

Joby Aviation (NYSE:JOBY) develops and manufactures electric air taxis. Its stock currently trades for $5.03, up 30% in the last 12 months. Analysts remain optimistic and have an average price target of $7.67, which represents a 52.4% increase from current levels. 

As an industry leader, Joby stands to benefit from industry expansion. The Urban Air Mobility market is expected to reach $45.40 billion in 2036, growing at a CAGR of 23.54%. While the industry is still in its early stages, government initiatives and private investments are aiding the market’s development. Flying taxis are also gaining attention since they avoid the worsening traffic congestion in metro cities. 

While Joby is still far from profitability, it is making solid progress toward its goal of entering commercial service in 2025. To prepare for operations, the company has been working with the FAA to complete precision landing tests and move towards FAA certification. In Q4 2023 alone, it completed 30 for-credit tests. With $1.0 billion in cash and short-term investments, the company is building off a solid foundation.

As Joby enters 2024, it aims to prioritize the manufacturing of its aircraft. To do so, the company acquired a facility at Dayton International Airport where manufacturing operations are expected to begin later in the year. The acquisition of the on-airport facility is part of Joby’s plan to develop facilities in Dayton, Ohio that are capable of producing 500 aircraft each year. 

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.