The sooner we join the transition towards Electric vehicles (EVs), the better it is for the environment. Whether you like it or not, countries are taking significant steps to ensure the efficient adoption and penetration of EVs. Besides government policies and subsidies, increased consumer interest continues to power the valuations of top EV stocks. The International Energy Agency expects the number of electric vehicles to hit 145 million by 2030.

With Governments around the world trying to meet their energy and climate goals, we will see a continued rise in demand for this sector. Thus, over the next few decades, there could be more EVs on the road than fuel-driven cars.

With this in mind, it makes sense to invest in promising EV stocks that could give solid competition to the EV maker Tesla (NASDAQ:TSLA). While Tesla continues to dominate the EV market, TSLA stock is highly-priced and could face downside, as massive competition from new players emerges.

Let’s take a look at the three Chinese EV stocks that are poised to take on Tesla.

BYD Co. (BYDDF)

At the top of my list is the Chinese EV maker BYD Co. (OTCMKTS: BYDDF). This company is backed by Warren Buffett, and is already the world’s largest EV company.

BYD has already been providing solid competition to Tesla, with its EV sales hitting 911,141 last year. Its hybrid sales stood at 946,238 in 2022, reflecting 247% growth. BYD stock is trading around $25 per share, down 15% over the past month. Thus, this is a stock trading at a discount, with the potential for excellent upside for investors looking to buy at this attractive entry point.

A price war between Tesla and BYD has led to a dip in the stock, of late. Consumers expect more aggressive cuts to be on the way, which has sidelined potential buyers who are waiting to see how low prices will go.

BYD sells more cars than Tesla largely due to its price advantage and impressive manufacturing capabilities. The company has been expanding aggressively, with BYD recently starting to sell its EVs in Japan. It is also exporting EVs to Thailand and India.

Fundamentally, the company is stable and has massive growth potential. Its February delivery numbers grew 119% year-over-year, which is no small feat. If you believe in the possibility of EVs and are in this for the long term, BYD stock is the one to own and hold forever.

Nio (NIO)

Next on this list of EV stocks to buy is Nio (NYSE: NIO). While there is mixed sentiment about NIO stock, it does have solid long-term potential. Already a leader in the Chinese EV market, NIO is a pure play in the EV sector.

That said, NIO stock has been hit hard since 2022 due to supply chain issues, with its price declining around 60% over the past six months. It is trading around $8 at the time of writing, an attractive entry point for investors. Anything below $10 should be a good entry point, in my view, for this EV player.

The one reason to bet on Nio is that it is not an early-stage EV maker. The company already has a presence across the global market, delivering 20,663 cars in 2023 alone. Additionally, the company is on track to meet its quarterly delivery numbers.

In the company’s most recent quarterly results, Nio reported a loss of 44 cents per share, and the management’s guidance was also below expectations. This has hit the stock hard, but the second half of the year could be better. Poor results in one quarter should not scare investors off. These losses are expected to narrow in the coming years.

Nio will launch new models this year, and continue to develop its mass market product, which could bring impressive revenue numbers. If you are looking for a long-term EV stock to hold, NIO stock is a no-brainer.

XPeng (XPEV)

Another Chinese EV maker that has suffered more than what was likely deserved is XPeng (NYSE:XPEV). While the company is continuing to grow, its focus on selling sports utility vehicles (SUVs), sedans, and family sedans sets it apart from the competition.

XPEV stock is trading just under $9 per share today, down roughly 40% over the past six months. The stock has suffered as much as NIO, but the company could benefit from the recovery of China’s economy. Do not expect the stock to show immediate improvement. However, over time, I expect XPEV stock could trend toward its former high of around $35 per share. It can certainly double in the second half of the year.

XPeng reported 15% growth in deliveries in February, with 6,010 vehicles delivered. The company aims to produce 200,000 cars this year, and while it might look like a highly ambitious target, even if it inches close to this number, the company will bring in solid revenue this year. The market’s negative sentiment is not stopping the company in any way, and it recently launched the new P7i sports sedan for the Chinese market, introducing new upgrades and higher charging efficiency.

On the date of publication, Vandita Jadeja 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.