The electric vehicle industry has had a difficult year. Valuations have tumbled as investors have begun to ask more questions about long-term pricing and competition within the industry. 

In particular, Tesla (NASDAQ:TSLA) has shown the challenges in the industry right now; the longtime electric vehicle leader is having to cut prices and has seen profits slump amid more challenging economic conditions.

As Chris Markoch recently pointed out, EV stocks are also under pressure as investors refocus on seemingly more promising opportunities in the AI space.

With so much innovation going on in the tech landscape right now, EV companies have to earn their keep. These three EV stocks, however, can still deliver the goods for investors this year.

Niu Technologies (NIU)

Niu Technologies (NASDAQ:NIU) designs, manufactures and sells electric motorcycles and scooters, primarily in China. 

In addition to its e-bikes and scooters, the company also sells a variety of spare parts, accessories, and branded apparel. 

The bike space has proven to be a great market for electrification. Often the biggest challenge with electric vehicles is the battery pack which can be exceedingly expensive and struggle to deliver sufficient range in a large heavy vehicle. However, in a bike or scooter, the battery doesn’t need nearly as much capacity. This overcomes a key barrier to electrification. 

NIU is hardly the biggest company in the electric vehicle space with 2024 revenues estimated to be around $470 million. However, unlike most purely EV companies, it already has strong unit economics. Analysts expect NIU to make a profit of $0.20 per share this year which works out to an 8.5 times P/E ratio. Earnings are expected to jump 50% next year which would put the stock at less than six times estimated 2025 earnings. 

There are certainly risks as a smaller company and one which operates in the currently struggling Chinese economy. However, the company’s focus on more affordable vehicles should ensure that it does well despite the current downturn.

Toyota Motor (TM) 

Increasingly, the legacy automakers are getting their revenge. While firms like Tesla are facing competitive setbacks, traditional automakers are having their moment in the sun.

Take Toyota Motor (NYSE:TM) for example. The company’s North American division just released its March 2024 sales figures. Overall Toyota saw a robust 22% increase in sales which is great on its own. That’s especially true given the somewhat challenging auto industry conditions today. 

What really jumps off the page is the fact that Toyota’s electrified vehicle sales in March soared 61% year-over-year. Toyota sold 78,157 electric vehicles simply for the month of March alone. Even more impressively, electric accounted for 36% of Toyota’s overall sales. EVs are really starting to move the needle for TM stock.

While many electric vehicle makers have struggled with profitability that’s no issue for Toyota. The company trades at less than 11 times forward earnings. The firm’s gigantic size, powerful brands, and international distribution make it a dominant player in the emerging electric vehicle landscape.

Sociedad Química y Minera de Chile (SQM)

Sociedad Química y Minera de Chile (NYSE:SQM) is another way to profit from the emergence of electric vehicles. 

With electric vehicles experiencing a downtrend right now, lithium mining firms such as SQM have also suffered. However, there is a little doubt that over time, electrification will continue and EVs will represent a larger and larger piece of the overall transportation market.

This makes lithium miners a great play for this megatrend. Regardless of which EV brands end up carrying the day, you’re going to see a lot more lithium batteries in use in the years to come. Lithium prices got crushed over the past year in large part due to weakness in the Chinese market where a lot of the battery manufacturing occurs. 

Profits for the lithium miners have declined and may well decrease again in 2024 given the current trends.

However, in the longer-term, SQM is one of the dominant global players in lithium and it has access to large low-cost reserves in Chile. Even with the dip in profitability right now, shares are still going for less than 10 times forward earnings. The company also has a strong track record of paying large dividends. While the times are tough for EVs right now, once the industry returns to growth, lithium miners like SQM will enjoy a major rebound.

On the date of publication, Ian Bezek 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.