<div id="readability-page-1">The electric vehicle industry has gone through difficult times in the last 12 to 18 months. EV stocks have corrected during this period on the back of sluggish growth and margin compression. However, business progress for some of the best EV companies remains positive. Once market sentiments change, these EV stocks are likely to surge higher from attractive levels. This column discusses three of the hottest EV stocks to buy for near- and long-term uptrend. I believe that the next 12 to 18 months are critical for the EV industry. The winners will clearly be separated from the laggards and losers during this period. Some EV stocks will surge higher while others will continue to destroy wealth. Therefore, stock selection is the key in an intensely competitive industry. In my view, the ideas discussed represent EV companies that are positioned to survive challenging times and emerge stronger in the coming years. <h2>Tesla (TSLA)</h2> <div id="1410733"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Hadrian / Shutterstock.com</div>There is no doubt that Tesla (NASDAQ:TSLA) is the hottest EV stock to buy. On April 22, TSLA stock touched closing lows of $142. From those levels, there has been a strong rally of 63%. However, if we look at the chart on a 12-month basis, TSLA stock has delivered negative returns of 13%. Therefore, it’s a good time to accumulate before the innovation driven EV company surges higher. It’s worth noting that in May, Nvidia (NASDAQ:NVDA) CEO had opined that Tesla is “far ahead” in self-driving cars. The global autonomous taxi ecosystem is expected to be worth $8 trillion to $10 trillion. Cathie Wood estimates that Tesla can potentially capture 50% of the market. According to Wood, this can translate into TSLA stock surging 10-fold by 2030. Another potential positive is the impending launch of low-cost cars. Tesla is working on its “unboxed model” that’s likely to cut manufacturing costs to half. If this is achieved, Tesla can make significant inroads in emerging markets. <h2>Li Auto (LI)</h2> <div id="2240440"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Robert Way / Shutterstock.com</div>Li Auto (NASDAQ:LI) stock has plunged by almost 50% for year-to-date. The deep correction has been on the back of growth expectations being revised on the downside. The news of tariffs in the European Union has also depressed sentiments. However, there are few positives to note. First, Li Auto currently only has a presence in China. With retail expansion within the country and launch of new models, growth is likely to remain healthy. International expansion might be on the cards in 2025 with the possibility of entering the Middle East markets where regulations are friendly. Further, Li Auto has a strong balance sheet and ended Q1 2024 with a cash buffer of $13.7 billion. This provides ample flexibility to invest in innovation. Li Auto is on-track to launch level 3 self-driving technology by 2025. As the market for autonomous driving swells globally, Li Auto is positioned to benefit. <h2>Rivian (RIVN)</h2> <div id="2052767"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Michael Vi / Shutterstock</div>Rivian (NASDAQ:RIVN) stock traded at 52-week lows of $8.3 in April. From those depressed levels, RIVN stock has doubled. The big rally has been on the back of the announcement related to the joint venture with Volkswagen (OTCMKTS:VWAGY). I expect the positive momentum to sustain in the coming quarters. Last month, Rivian’s joint venture with Volkswagen will create the next generation of software-defined vehicle platforms that both companies will use. As a part of the joint venture, Volkswagen will be investing $5 billion in Rivian with the initial cash infusion being $1 billion. An obvious advantage for Rivian is the cash infusion. The company is going through a phase of significant cash burn. Another potential advantage is that the joint venture might be the first step towards establishing a bigger presence in Europe. Between a strong cash buffer and partnering with Volkswagen, sentiments have turned positive for Rivian. Further, there is an impending launch of R2, R3 and R3X in 2026 that will contribute to growth and cost reductions. On the date of publication, Faisal Humayun 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. On the date of publication, the responsible editor held a LONG position in NVDA. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.Automotive, Consumer Discretionary, Electric Vehicles </div>

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The electric vehicle industry has faced challenges over the past year, resulting in corrections for EV stocks. However, some EV companies have shown positive business progress and are expected to surge higher once market sentiments change. This article discusses three top EV stocks to consider for near- and long-term uptrends: Tesla (TSLA), Li Auto (LI), and Rivian (RIVN). Tesla is considered the hottest EV stock to buy, while Li Auto has a strong balance sheet and potential for international expansion. Rivian has seen positive momentum due to its joint venture with Volkswagen.

- The electric vehicle industry has faced challenges in the past year, leading to corrections in EV stocks due to slow growth and margin pressures. Despite this, certain top EV companies show positive business advancements, hinting at potential surges when market sentiments improve.
- The next 12 to 18 months are crucial for the EV sector, separating winners from losers. Stock selection is vital in this competitive landscape, with a focus on companies poised to endure tough times and thrive in the future.
- Tesla stands out as a top pick, with potential for significant growth driven by innovations like self-driving cars and cost-effective models. Li Auto and Rivian also show promise with strategic expansions and partnerships, despite recent stock fluctuations.

What Are the Hottest EV Stocks Right Now? 3 Top Picks.