Everyone wants to be part of the next big thing, and right now, in the automotive industry, thats looking more and more like electric vehicles (EVs). A combination of social and political pressures are promoting EVs, and manufacturers both legacy automakers like Ford and GM as well as newer companies like Elon Musks Tesla are busy designing and building new lines of vehicles. That growth hit a snag last week, when EV stocks tumbled after a series of negative news events pushed sentiment downwards. A fire hit Teslas main production facility, while ChargePoint Holdings, which owns and operates a network of EV charging stations, reported a wider than expected loss. This was an important data point, as charging stations an essential piece of the EV infrastructure can be taken as a rough proxy for the health of the EV market. Pure-play EV companies are also under pressure of the big name traditional automakers; Ford, for example, is aggressively developing EVs, and has announced an all-electric version of its market-leading F-150 pickup. Thats not to say compelling plays cant be found in the current environment. EVs are growing in popularity, and are also supported by government policy; in the US, the state of California is actively pushing to for an all-electric, zero-emission vehicle fleet by 2035, while in China, the government is mandating that EVs make up a progressively increasing proportion of all vehicle sales, to top off at 40% in 2030. Government support, along with public interest, provides support for the EV market generally. Bearing this in mind, we used TipRanks database to find two compelling EV stocks, according to Wall Street analysts. Both tickers boast a Moderate or Strong Buy consensus rating and could climb over 40% higher in the year ahead. Canoo (GOEV) Well start in North America, where Canoo, based in the Los Angeles area, takes a decidedly non-traditional approach to automotive design. The company is one of the multitude of small EV designers and makers that have popped up in recent years to take advantage of the developing EV market, and it went public on the NASDAQ index through a SPAC merger in December. Canoo is in the pre-production phases, and has two EVs on the drawing board; the MPDV, or multi-purpose delivery vehicle, and a unique van marketed as a lifestyle vehicle. Both feature large interior volumes for their size class, making them highly adaptable for a wide range of uses. The steering wheel on both models is a steer-by-wire system, and the dashboard offers a streamlined design that emphasizes the drivers view. The lifestyle vehicle is compatible with a smartphone app, allowing the phone to connect to the vehicles control system. The van, named simply the canoo, is scheduled for release in 2022, with other models to follow. Since GOEV started publicly trading, less than three months ago, the shares have been highly volatile. The most recent stock movement, a 15% jump, came on March 11, when the company announced plans to launch a sport pickup truck in 2023. Preorders will begin in 2Q21. All of Canoos vehicles operate on the same basic architecture, a skateboard style chassis whose commonality allows for faster development timelines. Covering Canoo for R.F. Lafferty, analyst Jamie Perez sees a clear path forward for this company. Canoo has potential revenue streams from its Engineering and licensing opportunities. This business includes consulting and contract engineering for other EV OEMs, which leverages the development of its proprietary skateboard technology, Perez noted. Getting to specifics, Perez notes the companys guidance for sales through the middle part of this decade: Canoo has multiple revenue opportunities within the electric vehicle market… Looking forward to 2025, the company estimates Engineering services could generate $450 million, a 39% CAGR from 2021… Canoo is expected to generate $79 million in its first year of Lifestyle production, with sales growing at a CAGR of 147% by 2025 and generate $1.19 billion in revenues… B2B will focus on the last-mile delivery market. This segment is expected to grow by a CAGR of 100% by 2025 to $700 million. In line with these bullish comments, Perez rates GOEV a Buy, and his $23 price target implies a one-year upside of 45% to the stock. (To watch Perezs track record, click here) As a new stock in the public markets, Canoo has only picked up two analyst reviews so far but both are to Buy, making the Moderate Buy consensus rating unanimous. GOEV shares are priced at $15.70 and have an average price target of $26.50, giving them a 67% upside potential for the coming year. (See GEOV stock analysis on TipRanks) Li Auto (LI) And now lets move from sunny California across the Pacific to China, home of the worlds largest automotive market. China has 1.4 billion people, who are rapidly urbanizing and growing in wealth, and the country is becoming a voracious consumer of sorts of material goods including cars. As noted above, government mandates in China require that, by 2030, 40% of all automotive sales be in electric vehicles. Li Auto, founded in 2015, currently boasts one of Chinas best selling EV models, the Li ONE. In 2020, despite the corona virus crisis, Li delivered over 32,000 units, with 14.464 of those deliveries made in Q4. The company reported US$635.5 million in revenues for the quarter, and a gross profit of US$111 million, up 45% year-over-year. The companys quarterly net loss fell by more than half from Q3 to Q4, to just US$12.1 million, while quarterly free cash flow increased 113% sequentially to US$245.1 million. The companys popularity continues to increase, and Li announced on March 2 that it had delivered 2,300 Li ONE models during February. This was a 755% yoy increase, and the company stated that cumulative deliveries of the Li ONE, since its introduction, totaled 41,276 units. The company conducts its sales through 60 retail locations in 47 cities around China, and supports its vehicles with a network of 125 service centers in 90 cities. New models are planned for launch in 2022. Among the bulls is Needham’s 5-star analyst Vincent Yu who takes a bullish stance on LI shares. We believe the company’s unique value proposition, focused strategy, and diligent margin and costs control, make it a quality asset in the growing EV space, Yu noted. The analyst added, “We think the lack of charging stations is the main bottleneck for the growth EV markets in China, and Lis product directly addresses the problem. Li One uses extended-range technology, which allows the vehicle to run on its battery pack that can be charged by a gasoline engine, significantly increases its range (800km) while reducing vehicles’ reliance on charging stations. Li’s BEV model is set to release in 2023, capturing secular tailwinds from improvements in battery and charging technologies.” To this end, Yu rates LI shares a Buy along with a $37 price target. This figure implies a 42% upside potential for the next 12 months. (To watch Yus track record, click here) Overall, TipRanks data shows a bullish camp backing this EV player. The Strong Buy stock has amassed 6 Buy ratings in the last three months, with just one analyst playing it safe with a Hold. LI is priced at $25.91 and its $40.21 average price target implies a 55% upside from that level in the next year. (See LI stock analysis on TipRanks) To find good ideas for EV stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.