Finding the right EV stocks to buy can be confusing. A flurry of new overseas and domestic startups and established automakers led to robust market activity, with several companies soaring to mega-cap valuations.

Due to challenging macroeconomic conditions, EV stocks have fallen from all-time highs achieved last year. Nevertheless, the long-term bull case for EV stocks remains as attractive as ever.

PwC recently reported that EV sales during the year’s first half rose by 81% compared to the prior year, despite soaring inflation and interest rates. Despite EV stocks of most companies falling from all-time highs, the bullish sentiment over the long term remains intact.

EV adoption will continue to increase due to growing consumer demand and favorable government regulations. The risk-off sentiment means there are multiple EV stocks to buy despite the downturn.

The article’s main focus revolves around EV pure-plays operating in the U.S. and China. Additionally, the article also includes battery stocks, primarily focusing on the solid-state battery segment.

These EV stocks are worth holding for the next several years and are poised for multi-fold returns down the road. Here are seven of the best EV stocks to buy this year.

Ford (F)

Legacy automaker Ford (NYSE:F) is quickly becoming a force to be reckoned with in the EV space. Its been gaining immense traction in the EV market with electric versions of some of its most popular vehicles, including the Mustang Mach-E and the Lightening.

Sales numbers over the past couple of months have been nothing short of extraordinary. Perhaps what is doubly impressive is that it’s been posting industry-leading numbers when auto sales are declining overall.

In July and August, Ford delivered 7,700 and 5,897 EVs, respectively, representing at least a four-fold improvement from prior years. Moreover, sales overall improved by roughly 32% on average in the past couple of months.

Ford estimates that it now has close to an 11% market share in EVs in the United States, an incredible feat. With the overwhelming demand for its vehicles, Ford is easly one of the best EV stocks to buy in the long term.

Solid Power (SLDP)

Colorado-based startup Solid Power (NASDAQ:SLDP) has come a long way since its IPO last year as it inches close to commercializing its solid-state battery technology.

Solid Power’s cell designs are compatible with existing production processes and technology. Additionally, sulfide-based solid electrolytes are touted to provide the finest balance of mass production and performance.

A few months ago, in June, it reported that it had commenced production of its solid-state batteries, with mass production beginning in a few years’ time.

The goal is to increase productive capacity by 6,000 metric tons, potentially catering to a massive 100,000 EVs by 2026. Moreover, it expects to generate sales this year and has the liquidity to ramp up production briskly.

Li Auto (LI)

Li Auto (NASDAQ:LI)  is a leading Chinese EV company that has done incredibly well in carving out a niche in one of the most competitive markets.

It launched its first model, the Li ONE, in November 2019, and deliveries have grown incredibly. It recently announced the launch of its second model, which should accelerate delivery growth through 2023.  

Despite a revenue miss in the second quarter, its sales reached a record-high $1.3 billion, representing a 73% improvement from the prior-year period. Gross profit margins reached 21.5%, compared to 18.9% in the same quarter last year. Li Auto reported free cash flows of $67.4 million in the second quarter. It also has a whopping $8 billion cash buffer, imperative for funding expansion in the coming years.

Rivian Automotive (RIVN)

Rivian Automotive (NASDAQ:RIVN) is an up-and-coming EV company specializing in producing all-electric pickup trucks and SUVs.

The firm is picking up the pace in terms of production and gaining traction in the saturated EV space. Deliveries during the second quarter came in at 4,467, representing a fourfold increase from the 1,227 vehicles it delivered in the previous quarter.

Rivian is early in its growth story and seems to have enough tooling at its factory to reach an annualized production of 150,000 units.

The company has a sizeable pre-order backlog of 98,000 units after the second quarter. Its partnership with Amazon (NASDAQ:AMZN) and recent move to partner with Mercedes-Benz to produce electric vans in Europe in a few years is reason to feel optimistic about its shares for the long haul.

ChargePoint (CHPT)

ChargePoint (NYSE:CHPT) is a leading EV charging infrastructure provider. As of the second quarter, it has deployed more than 200,000 charging ports, giving its 65% market share.

Its business strategy involves making money from charger sales, recurring cloud software inflows, and warrant subscriptions. It continues to benefit from network effects and economies of scale to invest in new technologies.

Consequently, it’s been growing its sales by a remarkable margin each quarter. In its second quarter, it crossed the $100 million mark, with revenues growing over 93% on a year-over-year basis.

Its gross margins improved significantly on a sequential basis, despite market headwinds. Looking ahead, it expects to generate 100% growth from last year in its third quarter and foresees an amazing second half of the year, to generate $450 million to $500 million in sales for the year.

Lucid (LCID)

Lucid (NASDAQ:LCID) is a pure-play Chinese EV giant looking to tap the luxury EV market.

It is the company behind the Lucid Air, touted as the longest-range, fastest-charging EV on the market. Post its IPO, LCID has been performing incredibly well in growing its revenue base, but recent results have turned investors awry.

In the second quarter of this year, it made $97.3 million in sales, falling short of analyst expectations of $157.1 million. Supply chain issues have plagued the company’s productive capacity forcing its management to slash its guidance by half.

Nevertheless, it has an amazing 37,000 customer reservations, equal to $3.5 billion in potential sales. Moreover, it has a massive cash balance of $4.6 billion, assuring enough liquidity to continue progressing at a healthy pace well into 2023.

Mullen Automotive (MULN)

Mullen Automotive (NASDAQ:MULN) is one of the more unique EV plays that could potentially blow up in the coming years.

The firm is not only developing its line of EV cars but is working on the development of solid-state batteries with them.

Earlier this year, it reported positive test results of batteries, exceeding its previously stated values for amperage and voltage. The goal is to eventually scale up and test its batteries in its flagship Mullen Five EV Crossover, enabling the vehicle to go more than 600 miles on a single charge.

Mullen tripled its R&D expense in its most recent quarter, and signed an agreement with DelPack Logistics, LLC that plans to buy 600 Mullen Class 1 EVs and a couple of EV cargo vans in the next 18 months.

It boasts a cash balance of $60.9 million, which should be enough to stay afloat and continue investing in its business. Mullen’s unique proposition is likely to pay many dividends as we advance, and its current stock price makes it one of the most attractive moon-shot EV plays out there.

On the date of publication, Muslim Farooque 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.