If we look at the past few decades, the S&P 500 has witnessed some big crashes. However, the market has remained in an uptrend. The same holds true for industries that have multiyear tailwinds. Electric vehicle stocks have paused after a big rally. However, this growth story is still in the early stages. Therefore, I’ve compiled a list of the best EV stocks to buy on the dip.

President Joe Biden expects half of new vehicles sold in the United States to be electric by 2030. The European Union is targeting at least 30 million EVs on roads by then. Several other countries have similar ambitious targets. So, clearly, EV stocks are worth holding for the long term, especially if you can pick shares up at a discount.

Once-hot EV stocks have been depressed due to supply-chain issues, Covid-19 lockdowns in China, inflation and waning economic growth. But these are near-term headwinds. The long-term picture remains very bright indeed. However, with competition in the EV sector intensifying, investors need to be selective. Here are four EV stocks to buy on the dip.

Li Auto (LI)

Li Auto (NASDAQ:LI) is possibly the top name among Chinese EV stocks to buy on a dip. LI stock has the potential to deliver multi-fold returns for investors with a time horizon of three to five years.

The company debuted its Li ONE SUV in 2019. Between its debut and July of this year, Li Auto delivered 194,913 Li ONEs to customers. In August, the company introduced its Li L9 SUV to solid reviews. It also plans to launch the Li L8 SUV in early November. With two new models rolling of the line, deliveries should accelerate in 2023.

For the second quarter, the company’s revenue rose 73% year over year to $1.3 billion. Moreover, Li Auto reported operating and free cash flow of $168.6 million and $67.4 million, respectively. Cash flows are likely to swell further as deliveries gain traction in 2023.

The company ended the second quarter with cash and equivalents of $8 billion. Li, therefore, has strong financial flexibility for aggressive investments.

Li Auto has been focused on increasing its retail presence in China. But, similar to other Chinese EV players, international expansion is impending and will provide an additional growth catalyst. With its robust cash buffer, entry into new markets should be coming soon.

LI stock is down 30% over the past three months, providing investors a chance to pick shares up on sale.

Lucid Group (LCID)

Lucid Group (NASDAQ:LCID) has disappointed investors by lowering its production and delivery guidance for 2022 due to supply chain snags. LCID stock has been punished, down nearly 60% year to date. But it seems that the worst is over, with shares bottoming out below $14 in early September. The stock has remained resilient even with Lucid filing to sell securities worth $8 billion.

There are several positive developments of late. First, the company already has more than 37,000 reservations for its Lucid Air. With its expansion in Europe, that number is likely to go much higher.

Further, Lucid introduced the Lucid Air Sapphire last month. The company claims that the model is the world’s most powerful sedan (not just the most powerful EV sedan). With production of its Project Gravity SUV set to begin in the first half of 2024, Lucid has a healthy lineup of EVs.

Lucid has also initiated construction of its factory in Saudi Arabia. The backlog with the Saudi government, which signed a deal for the purchase of up to 100,000 Lucid EVs through 2030, provides long-term revenue visibility. Cash burn is likely to sustain with aggressive expansion. However, if delivery growth gains traction, LCID stock could move meaningfully higher.

Tesla (TSLA)

If you’ve been waiting for Tesla (NASDAQ:TSLA) to go on sale, this is your moment. Shares are down 15% year to date and 27% below their all-time high.

Tesla is likely to remain a market leader based on its ambitious targets. Importantly, the company is well-positioned financially to achieve its goals. Tesla aims to build 10 to 12 Gigafactories by 2030 to achieve annual production of 20 million cars. Indonesia, India and Canada have all been rumored to be the location of the next Gigfafactory.

New production locations will continue to boost growth in deliveries, along with the launch of new models. Tesla currently has the Cybertruck and Roadster in the pipeline.

Tesla had $18 billion in cash and equivalents at the end of Q2. For the first half of 2022, the company delivered operating cash flow of $6.3 billion. Therefore, internal cash flows will suffice for expansion activities.

Tesla is an innovator, and I expect the company to maintain its edge even amid intense competition. Therefore, TSLA stock is likely to bounce back strongly when industry headwinds wane.

Rivian Automotive (RIVN)

Still in its early growth stage, Rivian Automotive (NASDAQ:RIVN) is among the most attractive EV stocks to buy on the dip. Shares are down 66% year to date and hold great promise.

Recently, Rivian announced a partnership with Mercedes-Benz to build a factory in Europe for large electric van production. This is the company’s first major move outside the United States. It’s very likely that Rivian will enter China in the next two to three years.

In the U.S. and Canada, the company already has 98,000 pre-orders for its R1 electric truck. Further, the order for 100,000 electric delivery vans from Amazon (NASDAQ:AMZN) provides revenue visibility. With an annual planned capacity of 600,000 vehicles between its plants in Illinois and Georgia, Rivian is well-positioned to ramp up production and deliveries.

It’s worth noting that the company reported $15 billion in cash and equivalents at the end of the second quarter. There is ample buffer to cover the cash burn in the next 12 to 24 months. Overall, RIVN stock can deliver multi-fold returns for long-term investors. It’s a good time to buy and hold with patience.

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.