At one point, electric vehicles were seen as the next world-changing industry. It seemed inevitable that electric vehicle adoption would take over the automotive world. However, while many people have tended to lump together EV developments with the tech sector, it’s important to remember that consumers ultimately drive EV success. Over the past few years, consumer sentiment has been challenged by inflation and EV companies have struggled as a result.

Nonetheless, beaten-down sectors like EV currently have long been a target of value investing. Even though EV stocks are being treated as if they are going out of business, in 2023, the total number of EVs on the road hit 40 million worldwide, representing one in every five cars sold. As consumer sentiment restrengthens and inflation gets under control, we’re bound to see a new wave of EV buyers. Here are three EV stocks that are ready to take you from rags to riches!

Tesla (TSLA)

There may be no stock that exemplifies rag to riches more than Tesla (NASDAQ:TSLA). Over the past five years, shares of TSLA have returned over 1,100% to shareholders. Despite Tesla being one of the most widely covered stocks on Wall Street, analysts are all over the map with price targets. The stock has a one-year price target range of $22.86 to $320.00. Currently, it is trading at just below its average price target of $181.22.

Tesla shareholders recently voted to provide CEO Elon Musk with a record-breaking payday. Musk will now be paid a $56 billion pay package as per the 2018 agreement with the company. What does this mean for the long term? Musk will now be incentivized to help bring Tesla to key milestones including revenue and income goals. In particular, its CyberCab event in August will be the first of many such milestones that shareholders will be looking forward to for renewed optimism and growth confirmation. 

Another thing to note is how cheap Tesla’s stock is right now. Shares are trading at 5.7x forward sales which is well below its five-year average of 9.2x. Putting your money into Elon Musk’s hands has historically been a winning proposition, and for now, Musk looks to be staying on as the head of Tesla for the foreseeable future. 

General Motors (GM)

General Motors (NYSE:GM) is a legacy automaker that has long-term aspirations of being an all-electric company. This stock has historically been valued as just an automaker, unlike Tesla which prices in future growth of its AI and robotics segments. Currently, analysts agree that GM is an underpriced stock with a lofty average price target of $54.87 and a street-high price target of $96.00. 

So, why should you invest in GM for EV exposure? Well, not only does GM have a strong financial standing, but its also making heavy investments into EV technology. In fact, this year, GM expects to produce up to 300,000 electric vehicles! This number should continue to grow and take market share from GM’s internal combustion engine offerings, essentially solidifying itself as a key EV manufacturing player.

Despite its growth in EV production, GM continues to trade at a rock-bottom valuation. Shares of GM are trading at just 0.35x sales and 4.9x forward earnings. Both of these multiples are considerably lower than the five-year average for GM’s stock. Investors looking to find an industry leader at all-time lows, look no further than GM as a future-looking EV leader.

Albemarle (ALB)

Not all EV investments are automakers. Albemarle (NYSE:ALB) is the world’s largest lithium producer and a key part of the EV battery market. Wall Street analysts agree with how valuable Albemarle is to the industry. In fact, the high end of analyst’s one-year price target’s sit at $216, over 100% higher than its current price. 

This company is the key supplier to EV makers like Tesla and Ford (NYSE:F) as well as countless other traditional non-EV car makers. While Albemarle has seen some pullback due to plunging lithium prices, their recent quarter has demonstrated that their financials are still on track. They even recently announced a 40-cent dividend, thus demonstrating its confidence in using its cash flow to bring shareholder value.  

Albemarle’s stock has been beaten down and has lost about 30% so far this year. This has provided an intriguing entry point for new investors. For example, ALB’s 2.0x forward sales are currently sitting well below its five-year average of 3.9x. If you are bullish on EV stocks bringing you from rags to riches, then Albemarle needs to be at the top of your watchlist!

On the date of publication, Ian Hartana and Vayun Chugh 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.