Forget Tesla! 3 Top EV Stocks to Put On the Shopping List for 2023 and Beyond.

The popularity of Tesla’s (NASDAQ:TSLA) electric vehicles (EV) is well-known. In the U.S., Tesla is the leading EV stock everyone wants to own. Indeed, while other top EV stocks may provide more upside potential, that’s just the way it is.

Tesla’s brand, and status as an American car manufacturer that hasn’t gone immediately bust, is alluring to many. The company’s CEO, Elon Musk, has provided constant entertainment in his search for EV dominance. Not to mention his forays into social media, communications and space, among other sectors.

That said, the EV sector is a global one. There are plenty of EV stocks from around the world worth considering. And while Tesla is the leader in its core domestic U.S. market, there are other players targeting China (the world’s largest EV market) and Europe worth considering.

In this article, I’m going to highlight three such EV stocks I think are better bets than Tesla right now. That’s true as far as valuation and growth prospects are concerned.

Let’s dive in.

Polestar (PSNY)

Polestar Automotive (NASDAQ:PSNY) is among the most compelling EV stocks for a number of reasons. This Sweden-based EV maker focuses on a high-growth area of the EV market I don’t think gets enough love — the SUV market.

Polestar’s recent launch of its Polestar 3 electric SUV in China is a big deal. The company’s focus on growing its international footprint is one of the key reasons I like this Europe-focused EV player. 

Additionally, Polestar’s vehicle delivery prospects look bright, with a projected 60% growth in 2023 following an impressive 80% year-over-year (YOY) delivery growth in the previous year. Despite the widening of EBITDA level losses in 2022, the company is expected to see an improvement in margins in 2023 and beyond due to operating leverage. Furthermore, the Polestar 4 and 5 launches in 2023 and 2024, respectively, are anticipated to have an advantageous effect on economic opportunities, implying a hopeful outlook for the business.

Interestingly, the company ended 2022 with a healthy cash reserve of $974 million. The company is reportedly exploring options for equity or debt fundraising to finance its growth further. Any disclosures they issue in this respect will boost the value of the specific shares.

Over the long term, I want to see how this company will ultimately perform. For now, PSNY stock looks like an attractive speculative bet.

ChargePoint (CHPT)

ChargePoint (NYSE:CHPT) is experiencing a rapid period of expansion, with sales growth in the double-digit level for several consecutive quarters. Sales for the business increased by 93% in the fourth quarter to hit $152.8 million, while losses per stock dropped to 13 cents, a significant improvement over the 16-cent loss per stock that experts had projected.

The company experienced an impressive increase in sales of 94% in 2022, achieving annual subscriptions of over $100 million for the first time. The U.S. government’s goal of installing 500,000 EV stations by 2030 should spur additional expansion for the business.

ChargePoint, which became publicly traded just over two years ago, has successfully expanded its network of Level 2 chargers and DC fast chargers and grown its revenue. However, the firm’s Q4 and fiscal year 2023, which concluded on Jan. 31, had lower sales than anticipated. 

The company now has fast revenue growth but is also incurring significant losses. The stock’s price has dropped as a consequence, which has caused a drop in its price-to-sales proportion.

That said, for those thinking long term, ChargePoint’s business model and balance sheet remain strong, and may allow this company to outperform its peers in terms of growth (with profitability to follow in short order). 

BYD (BYDDF)

Last on this list of EV stocks to buy, we have the biggest EV player in the world. BYD (OTCMKTS:BYDDF) is an absolute behemoth in the EV sector. Larger than Tesla in terms of total electric vehicles (battery electric and plug-in hybrid), BYD’s focus is on dominating the global market, starting in China.

The Chinese automobile giant BYD (Build Your Dreams) has switched to producing only electric hybrid cars (BEVs) and connector hybrid electric cars. In the same year, BYD managed to sell over 1.85 million electric vehicles (hybrids included), representing a three-fold increase from both 2022 and 2021.

BYD has continuously recorded excellent delivery numbers over the past few years, establishing itself as the leading electric car firm worldwide according to the total amount of units purchased. Despite being backed by Warren Buffet, BYD’s EV sales figures of 911,141 units and 946,238 hybrid units in the past year are the most remarkable aspect of their performance. This growth represents a YOY increase of over 200%, which is far superior to Tesla and other industry competitors.

For those betting on the future of the EV sector, and want to ride Warren Buffett’s coattails, this is among the EV stocks to buy now, in my view.

On the date of publication, Chris MacDonald 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.