Electric vehicles are the future. Both governments and people around the world are slowly pushing towards increasing the percent of transportation coming from EVs. Nearly 20% of cars driven around the world are electric, and major governments are setting quotas to reach 50% EVs in the near future. The growth can also be seen by the stock market. The already large EV industry is expected to grow at a pace of 15.5% from 2022 to 2032, a massive amount that shows the immense potential that EV has for investors. Another reason EV is likely to flourish is from strong government backing. In the US, the government aims to have 50% of car sales be EV car sales by 2030, which if met, would drastically expand the EV industry and benefit companies within it. If the government continues on this path, EV investors will see massive returns. Here are the best three EV stocks to buy. 

Lucid (LCID)

Lucid (NASDAQ:LCID) is an American EV company that has strong potential to make a reversal. The company is currently trading nearly 96% below its all time high, though hope is not all lost. An edge that Lucid has over other EV companies is the sheer quality of their designs and cars. The cars are highly luxurious, a statement backed up by winning the World Luxury Car at the World Car Awards. Having luxury cars does limit their customer base which makes business harder. However, Lucid is looking to build new production facilities to revive the company by expanding capacity

Lucid’s finances also place it as one of the EV stocks to buy. It is currently trading at an immense discount, and there is significant room for upside to hit its previous peak. Their next few earnings statements have the potential of bouncing the company back and putting it on the right track. During the previous quarter, their revenue increased by over 20% YOY, showing growth and a potential comeback. The company is burning a lot of cash but it still has over $4 billion and it is being heavily backed by the well funded Saudi Public Investment Fund. 

Rivian (RIVN)

Rivian (NASDAQ: RIVN) is an American EV giant with room for significant growth. It recently lost a lot of value but it still has a lot of upside. They stand out in the business by the core of their business, high quality, desirable EVs. In comparison to the major EV companies, their satisfaction rating is the highest. According to J.D. Power Satisfaction Rankings, their R1T model had a 86% satisfaction rating, whereas Tesla had a rating of 74%. The company is also continuously investing on expanding their capabilities and striving to dominate the industry, recently announcing starting building a $5 billion production facility in Georgia.

Rivian’s finances also point to the company being one of the EV stocks to buy. Even though Rivian is valued at just about a tenth of its peak valuation, the massive drop isn’t fully justified financially. Just last year they grew revenue by over 100%, a figure that shows promise for the future and that is outperforming nearly every competitor. Their gross margins are weak, however they do have over $10 billion in cash to fund their expansion until they reach economies of scale and improve their margins.  

Li Auto (LI)

Li Auto (NASDAQ:LI) is a Chinese EV giant with huge potential to dominate the EV market. Focused on high-end luxury EVs, Li Auto has currently shown growth that has nearly never been seen before in the space. Just from 2020, their deliveries increased by over 1000% to reach nearly 400,000, a massive figure considering how small the company was just a few years ago. The company continuously innovates and comes up with new car models, most recently announcing the promising Li L6 EV SUV.

The company’s finances are also extremely strong. They currently have a staggering $15 billion in cash, an increase of over 3000% from the past four years. The company has limited risk of bankruptcy and will likely use the cash to keep growing at this rapid rate. The company is also making a net profit, which already puts it ahead of most of its competition. 

On the date of publication, Tomas Levani 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