12 Best Automotive Stocks to Invest in According to Analysts

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1. VinFast Auto Ltd. (NASDAQ:VFS)

Upside Potential: 59%

Number of Hedge Fund Holders: 5

VinFast Auto Ltd. (NASDAQ:VFS) positions itself as an emerging pure-play electric vehicle (EV) manufacturer. The company designs and produces a range of EVs, including electric cars, scooters (e-scooters), and buses (e-buses). It offers an e-mobility ecosystem focused on customers, community, and connectivity, alongside new vehicle rollouts. Headquartered in Hai Phong City, Vietnam, VinFast is recognized as Vietnam’s first global automotive manufacturer.

VinFast Auto Ltd. (NASDAQ:VFS) delivered 53,139 electric vehicles globally in fourth quarter 2024, reflecting a 143% increase over the last quarter. For the full year, the company exceeded its guidance and delivered 97,399 vehicles (+192% YoY) and expects to at least double its global deliveries for the full year 2025. In its February 2025 corporate presentation, the company outlined its strategy for international market expansion. It boasts of a highly automated manufacturing design, enabling scalable growth. VinFast Auto Ltd. (NASDAQ:VFS) has an aggressive expansion plan – from its effective annual designed capacity of 300,000 units, VinFast plans to expand to more than double the capacity by 2025 and further to 850,000 units by 2028.

The majority of this scale-up before 2025 is expected from India, Indonesia, and Vietnam, while between 2025 and 2028, capacity expansion will primarily come from North America. VinFast Auto Ltd. (NASDAQ:VFS) is also expanding its global distribution network and strategically targeting new high-growth markets in Europe, Asia, the Middle East and Africa. The company has ample liquidity to fund its expansion plans in addition to the $3.6 billion of free grants and loans it is expecting from its founder and parent company.

While we acknowledge the potential of VFS to grow, our conviction lies in the belief that 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 VFS 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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