12 Best EV Stocks To Buy in 2025

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

After delivering nearly 1.8 million vehicles in 2024, Elon Musk’s electric car company continues to command respect as a force propelling the EV industry forward, with a top-line revenue of $89 billion. The majority of the vehicles were Model 3 sedans and Model Y crossover SUVs, while the remainder were Tesla, Inc. (NASDAQ:TSLA)’s older, more expensive versions.

Despite a challenging macroeconomic backdrop, the firm continues to aggressively grow production. Tesla, Inc. (NASDAQ:TSLA)’s factories in Texas and Germany are now ramping up production, while a second factory in Mexico is under construction.

The business has resorted to price cuts to sell vehicles this year as consumer demand has weakened, a decision that has harmed the company’s bottom line. In 2024, its overall gross margin fell 39 basis points year on year to 17.9%, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin fell marginally to 17% from 17.2% in 2023. The business is still profitable, but profits are falling. Regardless of Elon Musk’s role as CEO, Tesla, Inc. (NASDAQ:TSLA) is clearly a leader in the worldwide EV market and the Best EV Stock.

The company’s shares have recently performed well, with low overseas exposure due to domestic EV production, according to Schwab Network Correspondent George Tsilis. He acknowledges supply chain problems but views Tesla, Inc. (NASDAQ:TSLA) as rather resilient. A positive China-U.S. resolution may increase market risk appetite.

Overall, TSLA ranks first among the 12 Best EV Stocks To Buy in 2025. While we acknowledge the potential of EV companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this 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.