Electric vehicles (EVs) are at the forefront of innovation in transportation. Unlike gas-fueled cars, they can cause less harm to the planet while oftentimes being cheaper due to subsidies. Looking at the industry’s current and expected growth, it is clear that EVs are here to stay. Just by 2030, a short six years from now, 50% of cars sold in the U.S. will likely be EVs, and the industry is expected to grow at a compounding annual growth rate of around 18% up until 2030, representing a huge upside. In order to be a part of the revolution that EVs will cause, below are the best EV stocks to buy. 

General Motors (GM)

General Motors (NYSE:GM) has been one of the leaders in the automobile industry, and it is now investing heavily in the electric vehicle market. Last year, GM sold 75,000 electric vehicles. While the sales came largely short of its initial 150,000 EV goals, GM still plans to delve aggressively into the EV segment. By 2025, GM will have spent over 35 billion in EV and AV investments, a 75% increase from its pre-COVID plan.

Another interesting aspect of GM’s electric vehicle sales is its retail partnership. For instance, GM has an Auto Program with Costco (NASDAQ:COST), which makes it easier for GM to reach consumers and amass sales. Costco members would get a special discount when purchasing GM electric vehicles, and considering that there are more than 50 million active Costco members in the U.S., the partnership opens a market expansion opportunity for GM.

Furthermore, with a price-to-earnings ratio of 5.80x, GM offers an excellent investment opportunity for those looking for undervalued EV stocks. 

Xpeng (XPEV)

Xpeng (NYSE:XPEV) is a Chinese EV company that started in Guangzhou, China. Although this Chinese EV startup is a relatively small player in the market, it has one of the greater growth potentials among numerous EV makers. Even though the stock has been performing poorly this year, Xpeng has promising news on both financial and nonfinancial ends that will convince investors the stock will bounce back. 

One of the main strategies Xpeng will implement in the near future is its shift into more affordable and mass-market models instead of current models targeting the high-end EV market. The company also announced it will launch more than 10 new models in the next 3 years. 

Financially, Xpeng is a buy. With gross margins of 13%, there is hope of them eventually reaching profitability. Many EV companies have negative gross margins, leading to large negative net margins — though Xpeng’s 13% is a positive sign. Its revenue is also up a massive 62% year-over-year, showing the company is not slowing down and still has significant upside left. As its growth continues, margins will improve, and so will the conditions of the company. 

BYD (BYDDY)

BYD (OTCMKTS:BYDDY) is currently the largest EV company in the world, even bigger than Tesla (NASDAQ:TSLA), owning an 18% market share of the entire industry. BYD’s business model is a success story that has propelled the company to its current position. Through the use of vertical integration, the company profits from multiple aspects of EVs, providing its own batteries, and even its own computer chips. Through large investments in innovation, BYD is trying to keep the top EV spot. One recent project was an investment of $1.4 billion that guarantees the production of 720,000 power device products and 6 billion optical microelectronic products. 

After taking a look at the financials, BYD is clearly a buy. The company is growing at a very rapid rate. In just one of the quarters last fiscal year, the company experienced year-over-year growth of 67%, showing massive potential for continued expansion. BYD is also profitable, which makes growing easier as profits can be reinvested to give the company an edge. Many EV companies are unprofitable, though this one can still consistently keep its net profit margin in the black.

On the date of publication, Tomas Levani 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.