It’s time to look at some of Wall Street’s favorite EV stocks as the electric vehicle segment looks to recover from last year’s sluggish performance in 2024.

Worldwide EV sales will hit 17.5 million units this year, growing by 27.1% if Canalys forecasts prove accurate. Sales revenue will climb to $623.3 billion by 2024, with the market growing at a compound annual growth rate (CAGR) of 9.82% to touch $906.7 billion, according to Statista data.

Considering these estimates, let’s explore three of Wall Street’s favorite EV stocks, which have huge upsides according to the best and brightest in the financial world. The first pick will be an EV charging operator making notable strides both in the United States and overseas. The second stock is a Chinese EV giant that recently dethroned Tesla (NASDAQ:TSLA). The final pick also comes from China, which is beating rivals despite operating primarily in the luxury segment.

Blink Charging (BLNK)

Blink Charging (NASDAQ:BLNK) is a “Moderate Buy,” according to analyst consensus, with an average price target of $8. This implies a significant 202% potential upside to the last closing price, illustrating the reward of investing in Wall Street’s favorite EV stocks.

Though there is a risk involved, BLNK is worth it because it is rapidly growing its network of charging stations. In recent quarters, it has added a significant number of chargers, bringing its total to nearly 85,000. BLNK is also expanding overseas, with significant progress being made in the United Kingdom and India.

Moreover, BLNK recently locked a deal to supply up to 41,500 EV charging units to the U.S. Postal Service as part of its vehicle electrification strategy. It’s a strong vote of confidence in Blink’s technology and services, which provides the charging network operator with smooth recurring cash flow.

In addition, the charging network operator is an earnings season performer, reporting beats in the last four quarters consecutively. With losses narrowing 44% in the fourth quarter of 2023, BLNK is also moving towards profitability.

All in all, it is understandable why BLNK is a favorite among EV stocks for analysts like Needham. A combination of strong execution, growth-oriented leadership, and robust institutional interest places the stock well in the pantheon of favorite EV stocks.

BYD Co (BYDDF)

Warren Buffett-backed BYD Co. (OTCMKTS:BYDDF) made headlines this year after surpassing Tesla in overall EV volume, becoming the largest electric car maker globally. For investors closely watching the Chinese EV space, it’s no surprise since BYD is methodically chipping away at market share.

In addition, BYD is based in China, and it enjoys protections that Tesla does not have. Operating in the country is a double-edged sword. However, investors generally see good relations with the government as a plus for any Chinese enterprise.

Moreover, BYD is not restricting itself to China. Its entry into new markets, like Japan, France, and Australia, is significant. Additionally, purchasing a substantial business unit from U.S. firm Jabil Inc. will enhance BYD’s electric components ​​​​capabilities.

In addition, peers such as Tesla, which uses BYD battery cells, are disadvantaged by BYD’s capacity to manufacture its own batteries and semiconductor processors. The “Blade Battery,” in particular, is one of BYD’s ground-breaking internal battery technologies, offering an exceptional range of 600 km on one charge. It also recently started construction on its inaugural sodium-ion battery plant, built with a $1.4 billion investment.

Considering its dominance and execution, it comes as no surprise that analysts are bullish on the stock. They maintain a “Strong Buy” consensus on BYD, with an upside potential of 38%.

Li Auto (LI)

Li Auto (NASDAQ:LI) rounds out this list of Wall Street’s favorite EV stocks with a considerable upside potential of approximately 73%. This optimism is warranted. Li Auto is the first electric vehicle manufacturer in China to become profitable.

The Chinese startup wants to continue the momentum this year, setting an ambitious target of 800,000 EV deliveries. In addition, its new model, named MEGA, which targets the large MPV market, is getting attention. Analysts believe the car could become a preferred pick for families within its price range, giving global brands such as BMW (OTCMKTS:BMWYY) and Mercedes-Benz (OTCMKTS:MBGAF) in China a run for their money. Production for MEGA is taking place at Li Auto’s Beijing plant, with a planned capacity of 100,000 units annually.

Financially, Li is coming off a great year. LI reported delivering 50,353 vehicles in December, a 137.1% increase year over year, leading to a cumulative 376,030 for FY’23. The company’s Q3’23 results, particularly, are notable for a 271.2% rise in revenue, largely driven by a record number of vehicle deliveries during the quarter.

Despite its solid performance, markets have yet to acknowledge this budding EV giant. Shares are down 5% year to date, making it an ideal time to pounce on this favorite among EV stocks.

On the publication date, Faizan Farooque did not have (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.