In this article, we will discuss the 12 Best EV Stocks to Buy for The Long Term.
While there was a slowdown in the US battery electric vehicle (BEV) sales towards the end of 2024, S&P Global believes that long-term EV market trends remain optimistic. Sales forecasts expect a continued increase in BEV market share, with an evolution in consumer demand and infrastructure. In October 2024, the BEV market touched an 8.9% share of all retail registrations, demonstrating a YoY increase of only 0.6 percentage points.
S&P Global further added that through the first 10 months of 2024, BEV sales volume saw a strong growth of 12.6% from the previous year, registering 1,023,716 units.
Sales Trends in EV Sales
Rho Motion, the leading EV research house, announced that the number of EVs sold globally in January 2025 stood at 1.3 million. While it fell by over a third from December’s strong month, the global market saw an increase of 18% as compared to January 2024. Notably, the EU & EFTA & UK EV market kicked off 2025 up by 21% after selling more than 250,000 EV units in January 2025. To provide a brief context, EFTA means European Free Trade Association. It has 4 member states i.e., Iceland, Liechtenstein, Norway, and Switzerland.
The European market made a strong start and must continue this performance to meet the emission standards for 2025, otherwise manufacturers will witness fines. Rho Motion stated that most of the European markets increased YoY, including Germany where EV sales went up by over 40% YoY and BEV sales increased by over 50% YoY. Elsewhere, the US & Canada EV market kicked off 2025 with 22% growth in EV sales YoY, reaching 0.13 million units sold. Cox Automotive expects that 1 out of every 4 vehicles sold in 2025 is expected to be electrified, with EVs accounting for ~10% of the market total in the year ahead, showcasing an increase from ~7.5% in 2024.
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Growth Drivers of the EV Market
Cox Automotive expects that EV growth will stem from ~15 additional EV models entering the market, consumers deciding to buy before policy changes, and state-level incentives countering the federal cuts. Also, the expansion of the EV charging network will contribute to this growth. The firm remains optimistic about retail automotive in 2025. Notably, the availability of vehicles, competitive incentives, and good news on auto loan rates can fuel healthy demand from capable buyers.
EV Magazine expects strong growth in EV market share in 2025, stemming from technological progress and supportive policies. Furthermore, automakers continue to expand their model offerings to address diverse consumer preferences, ranging from luxury SUVs to city-friendly compacts.
With such favorable trends, let us now have a look at the 12 Best EV Stocks to Buy for The Long Term.
A brand new electric vehicle charging at a charging station with a city skyline in the background.
Our Methodology
To list the 12 Best EV Stocks to Buy for The Long Term, we sifted through several online rankings and chose the companies catering to the broader EV sector that have positive 3-year sales growth, which we sourced from SeekingAlpha. Next, we mentioned the hedge fund sentiments around each stock, as of Q3 2024. Finally, the stocks were arranged in the ascending order of their hedge fund sentiment.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best EV Stocks to Buy for The Long Term
12) BYD Company Limited (OTC:BYDDY)
Number of Hedge Fund Holders: N/A
3-Year Sales Growth: 51.3%
BYD Company Limited (OTC:BYDDY) is engaged in the automobile and batteries business. Bernstein remains optimistic about the company’s growth prospects due to a combination of factors highlighting the strong market position and growth potential. BYD Company Limited (OTC:BYDDY) managed to establish itself as a leader in the EV manufacturing sector, and its technological leadership and cost advantages are expected to fuel volume growth and improve earnings, even during domestic pricing challenges.
Furthermore, BYD Company Limited (OTC:BYDDY)’s growing presence in the plug-in hybrid electric vehicle (PHEV) segment internationally, along with an increased market presence in regions such as Brazil and Australia, aids future growth. These measures, together with advancements in premium product offerings and improved driver assistance technologies, can help BYD Company Limited (OTC:BYDDY) achieve strong unit delivery growth by 2025, says Bernstein. The company is also engaged in manufacturing its own Blade Batteries, which reduces dependency on third-party suppliers and costs.
Furthermore, as a producer of batteries and a vehicle manufacturer, BYD Company Limited (OTC:BYDDY) tends to benefit from economies of scale, producing EVs more affordable as compared to its competitors. Also, the company continues to aggressively scale its international presence and has been gaining significant traction in Southeast Asia, Latin America, and the Middle East.
BYDDY is popular among sell side analysts as its average price target of $104 implies an upside of ~ 12% over the next 12 months.
11) Volkswagen AG (OTC:VWAGY)
Number of Hedge Fund Holders: N/A
3-Year Sales Growth: 8.5%
Volkswagen AG (OTC:VWAGY) is engaged in manufacturing and selling automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally. Amidst a challenging market environment, the company was able to deliver a total of 9 million vehicles in 2024. With a strong focus on becoming the automotive technology leader, Volkswagen AG (OTC:VWAGY) introduced over 30 new models with numerous innovations – including many all-EVs.
In 2025, Volkswagen AG (OTC:VWAGY) continues to consistently renew its portfolios and bring another 30 new models for customers throughout all the brands. BEV share of 8.3% for the full year remained the same as at the previous year’s level, with more BEVs delivered in China (8%). The company remains by far the BEV market leader in Europe despite lower deliveries (market share of ~21%). The company plans to exhibit the new entry-level model to the public at the beginning of March. Notably, low-cost entry-level mobility in the electric era is expected to be one of the cornerstones of the brand’s plan.
Volkswagen AG (OTC:VWAGY) remains well-placed in the field of all-electric battery electric vehicles. The company continues to make significant strides in the transition to EVs and its decision to integrate its battery value chain vertically is the key element to this transition, says EV Magazine. Volkswagen AG (OTC:VWAGY) is constructing 3 gigafactories to help its EV production. Once fully operational, the Salzgitter facility is expected to achieve an annual capacity of up to 40 GWh, which will be enough to power ~500,000 EVs.
Wall Street analysts hold a consensus Buy rating on the stock and their average price target of $20.56 implies an upside of ~ 90% from current levels.
10) Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 3
3-Year Sales Growth: 451.5%
Lucid Group, Inc. (NASDAQ:LCID) is a technology company, which is engaged in designing, engineering, manufacturing, and selling EVs, EV powertrains, and battery systems. Benchmark analyst Mickey Legg initiated coverage of the company’s shares with a “Buy” rating and a price target of $5. After a pause in 2024, the analyst opines that domestic EV production is projected to improve in 2025 and further acceleration is expected in 2026-27, with average selling prices declining and charging infrastructure building out.
Benchmark believes that Lucid Group, Inc. (NASDAQ:LCID) is well-positioned to achieve a significant share of the ever-evolving opportunity. This optimism stems from its technology, balance sheet, capital access, Saudi investment, partnerships, and highly integrated manufacturing capabilities. Lucid Group, Inc. (NASDAQ:LCID)’s vehicles are being recognized due to their strong battery efficiency, range, performance, and fast-charging capabilities.
The company’s industry-leading efficiency in electric propulsion systems, primarily in terms of miles per kilowatt-hour, places it as a technological frontrunner in the broader EV space. With the automotive industry shifting towards electrification, Lucid Group, Inc. (NASDAQ:LCID)’s expertise is expected to result in partnerships, JVs, or licensing agreements with other manufacturers. The company’s capital raise of ~$1.75 billion has extended its financial runway well into 2026.
9) Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 18
3-Year Sales Growth: 14.7%
Toyota Motor Corporation (NYSE:TM) is engaged in designing, manufacturing, assembling, and selling passenger vehicles, minivans and commercial vehicles, and related parts and accessories. Macquarie analysts upgraded the company’s stock to “Outperform” from “Neutral” due to production recovery, favorable FX trends, and robust hybrid electric vehicle (HEV) sales. The analysts project better earnings visibility over the upcoming quarters for Toyota Motor Corporation (NYSE:TM) because of North American production recovery and lower levels of channel inventory, placing the company well.
The company has announced that it will sign a comprehensive partnership agreement with the Shanghai municipal government in China regarding carbon neutrality. Apart from this, Toyota Motor Corporation (NYSE:TM) decided to establish a new wholly-owned company in Jinshan District in southwest Shanghai to produce BEVs and batteries. Under the partnership with the Shanghai municipal government, the company plans to contribute to the Chinese government’s goal of achieving carbon neutrality by 2060 in areas including hydrogen energy, automated driving technology, and battery recycling and reuse.
To drive this, Toyota Motor Corporation (NYSE:TM) plans to establish a new company. The newly formed company is expected to develop a new BEV under the Lexus brand and the production has been scheduled to begin from 2027 onwards. The initial production capacity is expected to be ~100,000 units per year. Overall, with the acceleration of EV demand, Toyota Motor Corporation (NYSE:TM) is expected to benefit from hybrid sales, solid-state battery innovation, expansion in BEV offerings, and government incentives.
8) NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 20
3-Year Sales Growth: 24.2%
NIO Inc. (NYSE:NIO) is engaged in designing, developing, manufacturing, and selling smart EVs in China. Jeff Chung from Citi maintained a “Buy” rating on the company’s stock, providing a price target of $8.90. The analyst’s rating stems from a variety of factors. The substantial rise in incentives for the company’s models, including the EC6, ES6, EC7, ES7, ET7, and ES8 series, showcases a strategic move to fuel sales and market competitiveness.
This indicates NIO Inc. (NYSE:NIO)’s commitment to enhancing customer value and fueling demand for their vehicles. Furthermore, the combination of higher incentives and the anticipated growth drivers make the company a strong investment proposition. The company’s introduction of new brands, such as ONVO and Firefly, demonstrates a strong move to capture a significant share of the broader Chinese EV market. By expanding over and above its premium positioning, NIO Inc. (NYSE:NIO) possesses the capability to tap into broader consumer segments and enhance the addressable market.
NIO Inc. (NYSE:NIO)’s multi-brand strategy can enable it to leverage its existing technological expertise and brand reputation throughout different price points and vehicle categories. By providing a wider range of products, it can attract a diverse customer base and enhance its overall market penetration. Its experience in the premium segment might provide a competitive edge in offering high-quality vehicles at accessible price points.
7) XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 20
3-Year Sales Growth: 35.2%
XPeng Inc. (NYSE:XPEV) is engaged in designing, developing, manufacturing, and marketing smart electric vehicles (EVs). Ming-Hsun Lee from Bank of America Securities maintained a “Buy” rating on the company’s shares, providing a price target of $18.60. Over the past month, the company’s stock has seen a run-up of over 27%, with much of the appreciation coming due to its record-breaking month in terms of vehicle deliveries. In January 2025, XPeng Inc. (NYSE:XPEV) delivered 30,350 Smart EVs, demonstrating a whopping 268% growth YoY, exceeding 30,000 units for the 3rd consecutive month.
The company’s Chief Executive believes that while there will be an increase in the penetration of new EVs, product differentiation and cost control are expected to remain critical. XPeng Inc. (NYSE:XPEV) focuses on expanding its international footprint to more than 60 countries by 2025 end. The company’s partnership with Volkswagen reflects a significant growth catalyst and technological advancement opportunity. The partnership is expected to offer XPeng Inc. (NYSE:XPEV) access to Volkswagen’s robust experience in automotive manufacturing and global presence.
The synergies stemming from this partnership are expected to accelerate XPeng Inc. (NYSE:XPEV)’s innovation in areas like autonomous driving and smart connectivity. This will give it a competitive edge in the ever-growing and dynamic EV market.
6) Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 24
3-Year Sales Growth: 20.5%
Stellantis N.V. (NYSE:STLA) is engaged in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems. Michael Jacks from Bank of America Securities reiterated a “Buy” rating on the company’s shares due to Stellantis N.V. (NYSE:STLA)’s strategic focus on establishing a strong recovery by 2025, despite a tough 2024. The analyst believes that the company has made strong progress in inventory management and by adjusting launch schedules for new models.
Furthermore, the expected recovery in adjusted operating income margins and the strategic launches in key markets like the European B-segment and the US muscle car market can fuel growth, opines Jacks. Stellantis N.V. (NYSE:STLA)’s unique approach to the Chinese market via its JV with Leapmotor can provide significant competitive advantages. By partnering with a rising Chinese EV brand, it gains access to the country’s advanced EV and battery production capabilities without the full risks related to direct market participation.
Ariel Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Lastly, shares of multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA) declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and commitment to industry leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”
5) Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 26
3-Year Sales Growth: 90.4%
Li Auto Inc. (NASDAQ:LI) operates in the energy vehicle market. The company designs, develops, manufactures, and sells premium smart EVs. Bernstein analysts retained an “Outperform” rating on the company’s stock. Li Auto Inc. (NASDAQ:LI) is expected to further expand its footprint in the Middle East and Central Asia. The company’s long-term prospects are expected to be aided by strong growth of EV adoption in China and its ability to expand its product lineup, mainly with BEV models in 2025.
Li L6 exceeded the 200,000 cumulative delivery milestone in January 2025. Notably, Li L6 was able to maintain its position as the best-selling extended-range electric vehicle model in China for 7 consecutive months. Its focus on autonomous driving technology can also be a key differentiator and growth driver over the coming years.
Li Auto Inc. (NASDAQ:LI)’s strong market share, together with its modestly growing presence in Europe, is expected to be critical to its near-term price performance. Macquarie analyst Eugene Hsiao upgraded the company’s shares to “Outperform” from “Neutral,” providing a $29 price target. The firm expects that while premium EV volumes can be seasonally weak, electric SUV fears are already priced into the current price levels. Therefore, the investment management group sees lower risk at current levels. The upgrade showcases a shift in expectations, highlighting a more positive outlook.
4) Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 31
3-Year Sales Growth: 1,557.1%
Rivian Automotive, Inc. (NASDAQ:RIVN) is engaged in designing, developing, manufacturing, and selling EVs and accessories. UBS upped the company’s price target to $14 from $11, keeping a “Neutral” rating on the shares. The analyst believes that industry challenges remain well-documented, but it continues to expect positive North American production revisions at some point. Amidst the global mixed picture, a stronger US market can result in home bias on US auto stocks.
Elsewhere, Benchmark analyst Mickey Legg launched coverage with a “Buy” rating and $18 price target on Rivian Automotive, Inc. (NASDAQ:RIVN)’s shares. The analyst opines that the company remains well-placed to gain a significant share of a massive market opportunity over the upcoming decade. One critical growth catalyst is Amazon announcing a partnership with Rivian Automotive, Inc. (NASDAQ:RIVN) to bring 100,000 electric delivery vehicles (EDVs) on the road by 2030.
The agreement offers Rivian Automotive, Inc. (NASDAQ:RIVN) a stable revenue stream and supports validating its technology in the broader commercial vehicle space. Meridian Funds, managed by ArrowMark Partners, released its Q2 2024 investor letter. Here is what the fund said:
“Rivian Automotive, Inc. (NASDAQ:RIVN) is a US-based electric vehicle manufacturer focused on the design, development, and production of electric adventure vehicles, pickup trucks, and commercial delivery vans. We own Rivian because we believe the company is a future leader in the growing electric vehicle market with a strong brand, compelling products, and a vertically integrated business model. During the quarter, Rivian’s stock price was driven by its progress on cost reduction initiatives and management’s stated confidence in achieving positive gross margins by the end of 2024. The recent announcement of a joint venture with Volkswagen, involving up to $5 billion in investment, also significantly boosted Rivian’s financing outlook and validated its technology. We trimmed our position in Rivian given the strong performance in the quarter.”
3) Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 36
3-Year Sales Growth: 10.7%
Ford Motor Company (NYSE:F) is a critical contender in the EV space. Considering the models such as Mustang Mach-E and F-150 Lightning, it has become a strong player for other legacy automakers. The company continues to stand firm behind its EV strategy. Ford Model e saw an EBIT loss of $5.1 billion in FY 2024 as it continues to invest in future products. However, the segment delivered $1.4 billion in cost improvements, net of a $100 million rise in spending to launch new battery plants and next-generation EVs. Ford Motor Company (NYSE:F)’s focus on electrifying iconic nameplates, like the F-150 Lightning and Mustang Mach-E, can help attract loyal Ford customers and new EV enthusiasts.
The company’s approach to electrification, including a mix of hybrids, EREVs, and BEVs, can place it well to capture a wide range of consumer preferences. This strategy allows Ford Motor Company (NYSE:F) to leverage its current strengths in internal combustion engines while, at the same time, gradually pivoting to full electrification. Its healthy brand recognition, mainly in trucks and commercial vehicles, can act as a significant advantage as the broader industry pivots to electric and connected vehicles.
2) General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 64
3-Year Sales Growth: 13.8%
General Motors Company (NYSE:GM) is engaged in designing, building, and selling trucks, crossovers, cars, and automobile parts. The company’s aggressive push into the EV market is expected to fuel a long-term growth trajectory. General Motors Company (NYSE:GM) can benefit from domestic battery production and a flexible manufacturing system which is anticipated to continue to help reduce battery costs. With the continuous improvement in battery technology and scaling up of production, the company can offer more affordable EVs, resulting in expansion of customer base and market share in the dynamic EV segment. The company expects that the momentum it has in both ICE vehicles and EVs will drive results again in 2025.
General Motors Company (NYSE:GM)’s investments in domestic battery production, together with a flexible manufacturing system, can offer it a competitive advantage associated with cost and supply chain resilience. For 2025, General Motors Company (NYSE:GM) targets to wholesale 300,000 EV units, anticipating $2 – $4 billion in EV profitability improvements. General Motors Company (NYSE:GM) noted that EV adoption has been higher in luxury segments.
A big focus of the company is on improving EV profitability. General Motors Company (NYSE:GM) achieved “variable profit positive” on its EVs in Q4 via continued manufacturing scale and efficiencies coming from increased production, improvement in material cost, including lower cell cost from scale and performance, and expansion of the EV portfolio with the roll-out of the Cadillac Escalade IQ and Sierra EV. To provide a brief context, variable profit positive on EVs means that the revenue garnered from selling the EVs is outpacing the direct costs of manufacturing them.
1) Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
3-Year Sales Growth: 21.9%
Tesla, Inc. (NASDAQ:TSLA) is engaged in designing, developing, manufacturing, leasing, and selling EVs, and energy generation and storage systems. The company’s strong brand equity helps command premium pricing, while the company’s EV manufacturing expertise enables it to make vehicles more cheaply than competitors. Morningstar expects increased autonomous driving software adoption and rapid growth in Tesla, Inc. (NASDAQ:TSLA)’s energy generation and storage business.
With continuous advancements in vehicle autonomy and the introduction of new products, the company expects the vehicle business to return to growth in 2025. The rate of growth is expected to rely on several factors, including the rate of acceleration of its autonomy efforts, production ramp at the factories, and the broader macroeconomic environment. However, Tesla, Inc. (NASDAQ:TSLA) anticipates energy storage deployments to grow at least 50% YoY in 2025.
Morningstar sees the potential for Tesla, Inc. (NASDAQ:TSLA) to outearn its cost of capital over at least the upcoming 20 years. Benchmark analyst Mickey Legg initiated coverage of the company’s shares and provided a “Buy” rating with a price target of $475. Apart from the continued proliferation of the EV market, Tesla, Inc. (NASDAQ:TSLA) possesses several opportunities to fuel growth, including AVs, robotics, and energy generation/storage, says the analyst.
While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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