The future of vehicles is electric, and many EV stocks are innovating and developing cutting-edge technologies to lead the way in this high-growth sector.

Of course, 2022 wasn’t the year for this sector. After a rip-roaring 2021, most EV stocks have since settled down to more subdued levels. One could argue that such a move was probably necessary, given the heightened valuations across the sector.

That said, there’s a reason why astute investors are looking to invest in EV stocks as the global markets heat up. It’s estimated that by 2030, EVs will account for approximately 60% of all vehicle sales worldwide. Thus, now may be the perfect time to acquire some of the top-performing EV stocks in the market.

While many think Tesla is the only high-end EV maker, many other emerging companies are worth a look. Accordingly, here are three of the best options I have on my watch list to consider right now.

Nio (NIO)

The pandemic years brought investors of Chinese EV company Nio (NYSE:NIO) immense joy. This company saw impressive revenue growth in triple or even quadruple digits. Unfortunately, the Russia and Ukraine conflict outbreak, the enforcement of lockdowns in China, and the sluggish global economy led to a significant decline in the company’s revenue growth from the highs seen during the pandemic.

Even though Nio’s growth rates have returned to normal, the company achieved an impressive 25.6% increase in sales last year. Thus, as Nio overcomes most of its challenges in the coming months, it is poised to enter a new growth phase. This optimism is reinforced by the reassuring statements of its CFO, Steven Feng, who predicts the company will double its sales to 250,000 EVs by 2023. If Nio can achieve this target, it could lead to a reversal of fortune for the company’s stock. I think such a reversal may already be underway.

Currently, Nio is focused on capturing China’s high-end electric vehicle market. The company’s EVs are priced higher than Tesla’s vehicles. Notably, this became even more visible after the American EV manufacturer reduced prices twice in recent months. According to Nio’s CEO, William Li, EVs will account for 90% of China’s new car sales by 2030. Accordingly, for those betting that Nio will pick up significant market share, this is a company with a massive growth runway from here.

Byd Co. (BYDDF)

BYD Co. (OTCMKTS:BYDDF) is another prominent player in the Chinese electric vehicle market. In fact, the company has established itself as the leading global EV manufacturer. That’s quite a feat.

Despite not being as well known as some competitors, the company has a remarkable track record of success in the electric automotive sector. This has led to investments from Warren Buffett and other prominent investors, contributing to its success.

The company’s January sales figures were remarkable, with over 911,141 EV units sold and 946,238 hybrid units sold. This represents a year-over-year growth rate of over 200%. This growth rate is an impressive feat that few companies can match. 

The Chinese electric vehicle and battery giant has recently vastly exceeded Tesla’s (NASDAQ:TSLA) performance in the Chinese market. Moreover, it has shared an encouraging profit forecast for both Q4 of 2021 and 2022, announced on Jan. 30. Therefore, there are plenty of reasons to be enthusiastic about the company’s future growth prospects.

BYD posted triple-digit revenue growth in its fourth quarter, and investors expect the company to continue delivering solid results in the upcoming quarter. Analysts predict that BYD will see a 45% increase in revenue growth this year. This forecast has generated a lot of enthusiasm among investors looking to capitalize on BYD’s success.

Xpeng (XPEV)

Xpeng (NYSE:XPEV) is the last notable Chinese EV manufacturer on this list (there’s a trend here). Like its peers, XPeng has been affected by Tesla’s price cuts for its vehicles in China. Indeed, this effect is probably felt more by XPeng, which was forced to lower its vehicle prices after Tesla’s price drop. Xpeng’s disappointing 2022 performance only added to this impact.

Despite a lackluster Q1 2023 outlook, Xpeng’s management remains optimistic about its growth prospects due to recent vehicle price cuts and upcoming product launches. This confidence is reflected in XPEV’s current stock price rally, which suggests that investors also anticipate a strong resurgence for the company.

XPeng has revealed its intention to introduce its driver assistance technology across all major cities in China by 2024, which is a strategic advantage for the company, given its established market position.

Chinese regulators are poised to help domestic companies increase their market share, which could be a positive factor for XPEV stock. The XNGP technology from XPeng is currently available in select Chinese markets, but expanding it to other cities could boost the company’s appeal to potential buyers throughout the country.

The median stock price forecast for Xpeng Inc. has decreased, but based on a poll of 38 investment analysts, the consensus is still to buy the stock. This rating has been consistent since March, indicating that investors and analysts are confident about the company’s potential for growth.

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.