Electric vehicle (EV) sales continue to grow but at a slower pace than many had previously expected. In 2024, sales of all-electric and hybrid vehicles in the US reached 20% of new car and truck sales for the first time. While this is a massive achievement, it comes at a slower rate than expected and traditional gas and diesel-powered vehicles still dominate the market. Gas or diesel internal combustion engines fell below 80% for the first time in modern automotive history. These models accounted for 79.8% of the sales in 2024.
According to auto data firm Motor Intelligence, 1.3 million all-electric and 1.9 million hybrid vehicles, which include plug-in models, were sold last year. However, there is more uncertainty as to how sales of all-electric and plug-in hybrid electric vehicles will be influenced by the potential actions of President Trump as well as the ongoing trade war.
READ ALSO: 11 Undervalued Chemical Stocks to Buy Now and 10 Best Gas Stocks to Buy According to Billionaires.
Globally, China remains the largest market for EVs. According to the China Passenger Car Association, sales of new energy vehicles, which include battery-only and hybrid-powered cars, jumped 42% to reach nearly 11 million units in 2024. The rapid growth of new energy vehicles in China in recent years has been supported by a mix of subsidies and consumer purchase incentives.
However, CNBC reported that China’s EV market could experience a sharp slowdown in 2025, with HSBC analysts predicting slower growth of only 20% in 2025 because of industry consolidation and reduced margins for struggling companies. Yuqian Ding, head of China autos research at HSBC, said in a report that the current situation is “unsustainable”. According to Ding, strong sales have allowed weaker firms to hang on despite falling margins. HSBC analysts expect consolidation within the industry to now accelerate rapidly, which could force a lot of small firms out.
With this background in mind, let’s take a look at the 10 best EV stocks to buy under $50.
A fleet of electric vehicles charging at a station in Beijing.
Our Methodology
To compile our list of the 10 best EV stocks to buy under $50, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. We narrowed down our selection to stocks with a share price of under $50 as of March 28, 2025. Next, we focused on the top 10 EV stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 best EV stocks to buy under $50 were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best EV Stocks to Buy Under $50
10. Plug Power Inc. (NASDAQ:PLUG)
Share Price: $1.34
Number of Hedge Fund Holders: 24
Plug Power Inc. (NASDAQ:PLUG) is a global leader in hydrogen fuel-supply solutions and in hydrogen applications for material handling, power generation, and e-mobility. The company develops hydrogen fuel cell systems that are designed to replace conventional batteries in EVs and electrical equipment. Hydrogen fuel cell systems offer significant benefits like improved charging efficiency and extended range. Plug Power Inc. (NASDAQ:PLUG) ranks among the best EV stocks to buy under $50.
On March 5, TD Cowen analyst Jeff Osborne maintained a “Buy” rating on Plug Power Inc. (NASDAQ:PLUG) with a price target of $4.00. Osborne highlighted the company’s strategic initiative “Project Quantum Leap”, which aims to cut annual costs by $150 to $200 million as the company plans to improve its operations and financial performance. Osborne also pointed out that Plug Power Inc. (NASDAQ:PLUG) is expected to increase production at its current facilities. The company will also bring new plants online. A plant in Louisiana is expected to begin operations in the second quarter of 2025 and another in Texas by the end of 2026. However, the analyst emphasized that Plug Power Inc. (NASDAQ:PLUG) must create enough demand to match its growing supply and production capabilities. Osborne expressed confidence in the company’s targets and its ability to execute its business plan successfully in the coming years.
9. Blue Bird Corporation (NASDAQ:BLBD)
Share Price: $32.93
Number of Hedge Fund Holders: 25
Blue Bird Corporation (NASDAQ:BLBD) is a leading American school bus manufacturing company that also specializes in manufacturing a range of electric and low-emission buses. In Q1 of fiscal 2025, which ended on December 28, 2024, the company delivered more than 130 electric-powered buses and also reported significant growth in EV orders thanks to programs like the EPA’s Clean School Bus Program and state/local initiatives. As of February 2025, Blue Bird Corporation (NASDAQ:BLBD) reported approximately 1,000 EV buses either sold or in its firm order backlog. This supports the company’s EV sales targets for 2025.
BLBD is one of the best EV stocks to buy under $50. The company is focused on growing its leadership in electric and propane-powered vehicles. At Work Truck Week 2025, Blue Bird Corporation (NASDAQ:BLBD) displayed its new and innovative zero- and ultra-low emission commercial vehicle solutions. The company presented a propane-powered Class 5-6 stripped chassis and an advanced electric step van at the show’s Ride & Drive. The company plans to launch its electric-powered stripped chassis in the first quarter of 2026, which will be followed by the propane version in the second quarter of 2026.
8. Li Auto Inc. (NASDAQ:LI)
Share Price: $25.52
Number of Hedge Fund Holders: 28
Li Auto Inc. (NASDAQ:LI) is a Chinese new energy vehicle company that focuses on designing, developing, and manufacturing premium smart EVs. The company is a pioneer in successfully commercializing extended-range EVs in China and it also builds platforms for battery EVs. Li Auto Inc. (NASDAQ:LI) ranks among the best EV stocks to buy under $50.
On March 17, Bernstein analysts raised the firm’s price target on Li Auto Inc. (NASDAQ:LI) from $30 to $33 and maintained an “Outperform” rating. This adjustment is based on the company’s Q4 2024 performance and future prospects related to new battery EVs and expansion strategies. Bernstein pointed out that the positive outlook is supported by the launch of new battery EVs like the i8 and i6, and the company’s plans for overseas expansion. Li Auto Inc. (NASDAQ:LI) is slated to unveil an updated advanced driver-assistance system (ADAS) for its L series and Mega in May. The company plans to begin deliveries of the i8, its first all-electric SUV, in July. Li Auto Inc. (NASDAQ:LI) is also expected to release the i6, another all-electric SUV, in the second half of 2025.
7. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Share Price: $15.85
Number of Hedge Fund Holders: 30
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is an Israeli smart energy technology company that is best known for its intelligent inverter solutions that enhance the efficiency of solar photovoltaic (PV) systems. The company also specializes in developing and selling products for the EV market. Overall, the company serves a broad range of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. Through its e-Mobility segment, SolarEdge Technologies, Inc. (NASDAQ:SEDG) offers a range of solutions for the EV market, including e-Drive systems, charging and DC converter solutions, vehicle management, and energy storage and distribution solutions.
The company is making strategic investments to position itself for future growth within the EV industry. According to SolarEdge Technologies, Inc. (NASDAQ:SEDG), distributed renewable energy will play a vital role in maximizing the potential of electric mobility. In April 2024, the company completed the acquisition of Wevo Energy Ltd., a software startup that focuses on optimizing and managing EV charging systems. Wevo’s software is used to support locations with large numbers of EV chargers. These can include apartment buildings, workplace parking lots, and public charging locations. SolarEdge Technologies, Inc. (NASDAQ:SEDG) will be looking to use Wevo’s expertise in EV charging optimization to integrate on-site solar generation, battery storage, and large-scale EV charging. Through this acquisition, SolarEdge Technologies, Inc. (NASDAQ:SEDG) expands its offerings for commercial and industrial customers.
6. Stellantis N.V. (NYSE:STLA)
Share Price: $11.33
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) is a leading automotive manufacturing company with a portfolio of 14 iconic brands. These brands are Abarth, Alfa Romeo, Chrysler, Peugeot, Citroën, FIAT, Dodge, DS Automobiles, Opel, Jeep, Lancia, Maserati, Ram, and Vauxhall. The company has operations across more than 30 countries and serves customers in more than 130 markets globally. Stellantis N.V. (NYSE:STLA) offers a range of electrified vehicles. These include battery electric vehicles (BEVs) and hydrogen fuel cell vehicles. The company is looking to capitalize on the shift from combustion engine models to EVs and as part of its Dare Forward 2030 strategic plan, the company aims to launch over 75 BEV models by 2030.
While Stellantis N.V. (NYSE:STLA) is committed to electrification, it is also making moves to utilize new technologies like artificial intelligence (AI). The company is collaborating with AI specialists to maintain a competitive edge and offer smarter and more responsive vehicles. It has been working for over a year with Mistral AI, a French AI startup, and integrating AI tools into vehicle engineering, fleet data analysis, internal car sales, and even manufacturing. In February 2025, Stellantis N.V. (NYSE:STLA) unveiled the latest initiative under this partnership, which is a next-generation AI-powered in-car assistant that enables natural, conversational interactions and acts as a voice-activated user manual for drivers.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Share Price: $12.41
Number of Hedge Fund Holders: 40
Rivian Automotive, Inc. (NASDAQ:RIVN) is an American electric vehicle manufacturer that ranks among the best EV stocks. The company also develops and offers software and services that address the entire lifecycle of EVs. Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, builds, and sells the R1T electric pickup truck and the R1S electric SUV. The company uses a versatile “skateboard” platform to build its EVs and this platform can support future vehicles or be utilized by other companies. Rivian Automotive, Inc. (NASDAQ:RIVN) plans to unveil its cheaper R2 SUV in 2026 and aims to make more additions to its lineup in 2026 and 2027 with the higher-end R3 and R3X SUVs.
On February 21, Needham analyst Chris Pierce raised the firm’s price target on Rivian Automotive, Inc. (NASDAQ:RIVN) from $14 to $17 while maintaining a “Buy” rating. This revision followed the company’s better-than-expected results for the fourth quarter of 2024. Pierce is confident that Rivian Automotive, Inc. (NASDAQ:RIVN) will benefit in the long term from the shift to EVs. The analyst noted high customer satisfaction and enthusiasm for the company’s EVs. Pierce also highlighted the upcoming launch of R2, which is expected to be a more affordable model. The R2 vehicle launch is projected to significantly expand Rivian’s total addressable market.
4. BorgWarner Inc. (NYSE:BWA)
Share Price: $28.19
Number of Hedge Fund Holders: 43
BorgWarner Inc. (NYSE:BWA) is a global company that focuses on designing and manufacturing automotive and e-mobility systems. The company is a major supplier of essential components for internal combustion, hybrid, and electric vehicles. BorgWarner Inc. (NYSE:BWA) ranks among the best EV stocks to buy under $50.
The company is actively working to expand its presence in the EV market by developing new technologies and securing business awards to support future long-term growth. BorgWarner Inc. (NYSE:BWA) has won various contracts in Asian markets for its High Voltage Coolant Heater (HVCH) technology. In China, a major automaker in China will utilize the company’s HVCH for a fully electric SUV. Production is expected to begin in the second quarter of 2025. In Korea, it will be utilized in an electric pickup truck. In Japan, BorgWarner’s (NYSE:BWA) HVCH technology will be used in a battery-electric vehicle that is slated for production in 2028. Additionally, BorgWarner Inc. (NYSE:BWA) successfully expanded its new energy vehicle motor business in February 2025 by securing four new projects with three major Chinese brands. These projects include the supply of motors for hybrid and pure electric platforms.
3. Ford Motor Company (NYSE:F)
Share Price: $9.72
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) is an American leading global automaker that manufactures and sells vehicles under its Ford and Lincoln brands. The company offers fully electric, hybrid, and traditional combustion engine models. Its Model e division focuses on the development and production of EVs. Ford Motor Company (NYSE:F) is one of the best EV stocks to buy under $50.
As part of its Ford+ plan for growth and value creation, the company is focused on leading the EV revolution. In 2024, Ford Motor Company (NYSE:F) reported record sales of electrified vehicles, which include hybrids, plug-in hybrids, and all-electric models. Additionally, the company reported its electric vehicle sales set a new record in Q4 2024, with more than 30,000 EVs sold. Ford Motor Company (NYSE:F) saw all of its electric models, which are the Mustang Mach-E, the F-150 Lightning, and the E-Transit, achieve record sales in 2024. The company is taking steps to develop its next-gen vehicles and its Model e division continues to invest in new projects. Ford Motor Company (NYSE:F) aims to bring affordable, high-volume electric vehicles to the market to drive future growth. In 2024, the company’s Model e division reported a net increase of $100 million in spending aimed at developing new battery plants and next-gen EVs.
2. ON Semiconductor Corporation (NASDAQ:ON)
Share Price: $40.94
Number of Hedge Fund Holders: 52
ON Semiconductor Corporation (NASDAQ:ON), or simply onsemi, is an American semiconductor manufacturing company that specializes in producing a wide range of components, including advanced MOSFETs, Image Sensors, and Silicon Carbide technology (EliteSiC). With a strong focus on the EV and industrial end markets, the company manufactures chips that are used in drive trains of EVs and other chips that support driver-assistance systems. ON Semiconductor Corporation’s (NASDAQ:ON) silicon carbide chips help increase the range of electric vehicles.
The company is making strategic investments to grow its business in high-growth areas like automotive, industrial, and AI data centers. In January 2025, ON Semiconductor Corporation (NASDAQ:ON) acquired the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business from Qorvo. This acquisition, for $115 million in cash, includes the United Silicon Carbide subsidiary and strengthens onsemi’s extensive EliteSiC power portfolio. The SiC JFET technology will help enhance energy efficiency and power density in AI data centers, particularly in the AC-DC stage of power supply units. The technology will help ON Semiconductor Corporation (NASDAQ:ON) improve efficiency and safety in EVs by replacing multiple components with a solid-state switch in battery disconnect units. The SiC JFET technology will also help the company support certain energy storage topologies and solid-state circuit breakers in the industrial end market.
1. General Motors Company (NYSE:GM)
Share Price: $46.68
Number of Hedge Fund Holders: 68
General Motors Company (NYSE:GM) is an American multinational automotive manufacturing company that ranks among the best EV stocks to buy under $50. The company has global scale and capabilities and is widely known for its Chevrolet, Buick, GMC, and Cadillac brands. General Motors Company (NYSE:GM) offers a broad portfolio of EVs and gasoline-powered vehicles.
The company is taking steps to advance its EV lineup and saw significant success in 2024. In the fourth quarter of 2024, General Motors Company (NYSE:GM) reported a 21% increase in overall sales year-over-year. This growth was driven by EV sales, which increased by 50%. For the full year 2024, General Motors Company (NYSE:GM) reported that EV sales surged by 125%. This helped the company double its share in the EV market over the year as the company reported consistent growth in EV sales throughout 2024. In Q4, General Motors Company (NYSE:GM) sold 42,000 EVs, an increase of 10,000 compared to Q3 and nearly twice the sales from Q2. The company is also integrating new technologies into its vehicles. In February 2025, General Motors Company (NYSE:GM) completed its acquisition of Cruise Holdings, which will now be a wholly-owned subsidiary of GM and work on autonomous vehicle technology and advanced driver assistance systems. General Motors Company (NYSE:GM) will be integrating Cruise technology into Super Cruise, its hands-free driver assistance system.
Overall, GM ranks first among the 10 best EV stocks to buy under $50. While we acknowledge the potential of EV companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
