Tesla’s (NASDAQ:TSLA) stock has performed well this year, rising by 51% since the start of 2023 (although it’s still down almost 50% from its 2022 starting point). Given the worries about the effect of current automobile price drops and rivalry, certain shareholders might seek alternate methods to participate in the surge in EV stocks. Shareholders may also benefit from the increasing popularity of EVs without depending on the achievement of specific manufacturers. All by diversifying their investment holdings with a variety of EV manufacturers.

Here are three EV stocks in which you can trust your money and bring you some decent returns in the long run.

Nio (NIO)

Amid the pandemic, Nio (NYSE:NIO) achieved triple-digit returns and substantial revenue growth. However, the company faced challenges with lockdowns and supply chains, which led to a decline in growth. To maintain momentum and improve growth, Nio needs to address these challenges immediately.

One of the best innovations Nio has is its Power Swap batteries. It’s the automaker’s solution to the challenge of long charging times. In fact, it allows drivers to quickly exchange depleted batteries for fully charged ones. That’s done either by paying per swap or through subscriptions. This distinguishes them from other Chinese EV manufacturers relying solely on charging stations. Investors who ignore the short-term distractions might benefit by investing in Nio, which can become a strong competitor for both Tesla and traditional automakers in Europe if it can replicate its success in China and expand its Power Swap network.

Ford Motor (F)

Ford Motor (NYSE:F) is the second-best-selling electric car manufacturer in the US. However, its share of the marketplace remains under 8%, as opposed to Tesla’s 65%. Although this is a minor achievement for Ford, its stock dropped by 44% in 2022. Therefore, it’s worth discussing whether Ford is a good buy in 2023.

Ford has a strong brand with a century-old legacy and loyal customers. Ford’s concentration on the EV category has allowed it to remain relevant in the cutthroat automotive business amid the trend favoring electric cars. When Ford releases a new EV, its loyal customer base generates strong demand.

Ford sees considerable gains from the Inflation Reduction Act (IRA), especially from the battery-production tax credit reaching up to $45 per kilowatt hour. This tax credit can help the company and its battery partners accumulate more than $7 billion in tax credits from 2023 to 2026. These credits will continue to rise yearly as their joint-venture battery plants increase production.

Ford’s stock appears appealing, with a price-to-earnings ratio of 5.7. Although it may not reach the valuation multiples of its EV competitors, Ford’s stock can increase as it steadily expands its EV sales. Ford’s stock is a top choice in 2023 due to its strong brand, focus on EVs, potential benefits from the Inflation Reduction Act, and attractive valuation.

BYD Co. (BYDDF)

BYD Co. (OTCMKTS:BYDDF) has become the world’s largest electric vehicle (EV) manufacturer. Better, its impressive track record has established it as a highly successful company in the EV industry. Better, its recent success was attributed to its Dynasty and Ocean series of plug-in hybrids and pure electric cars, which helped it sell 552,076 new energy vehicles in Q1, a surge of 92.81% year over year.

Although most of BYD’s sales occur in China, the company has an active international expansion in the U.S., Europe, and Asia. With its expertise in battery supply and chip-making, BYD’s expansion has been underpinned by these two strategic advantages.

Like many other Chinese brands, BYD has entered a price war initiated by Tesla by offering discounts for its EVs. These discounts have impacted automakers’ earnings, including Tesla, which reported a 24% drop in first-quarter net income. Recently, BYD introduced its Seagull electric hatchback at the Shanghai autoshow, which amazed visitors with a starting price of just 78,000 yuan, approximately 50% of the cost of the cheapest new energy vehicles available elsewhere.

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.