In this article, we will discuss: 12 Best EV Stocks To Buy in 2025.
Electric cars, often known as electric vehicles or EVs, are automobiles powered by electricity instead of gas. Electric car stocks are comprised of companies that primarily manufacture electric vehicles. Firms that make components for electric vehicles, such as batteries or autonomous driving systems, are also regarded as part of the electric vehicle industry.
President Trump’s 25% tariffs on imported automobiles have officially come into force, affecting roughly half of the US auto industry. According to S&P Global Mobility estimates, 46% of the 16 million automobiles sold in the United States in 2024 were not produced domestically. The policy also includes tariffs on specified vehicle parts, including engines and transmissions, which will go into effect on May 3.
Wall Street analysts and investors have been skeptical of the tariffs, which some say might reduce business earnings and plunge the automobile industry into a recession.
Bernstein analyst Daniel Roeska stated in a recent note to investors:
“A 25% on automotive imports lasting beyond four to six weeks would likely have a chilling effect on the entire sector as [automakers] need to grapple with significant impact to the bottom line.”
Wall Street analysts believe that automakers’ and suppliers’ equities will remain volatile in the near term. The most vulnerable businesses are those with high import ratios. Several companies saw more than 60% of their U.S. sales in 2024 come from vehicles manufactured outside of the United States. Meanwhile, companies with all-U.S. final assembly lines and minimal dependence on imports, especially in the EV industry, are projected to be more secure.
In the first quarter, U.S. auto sales exceeded industry forecasts by a wide margin as buyers rushed to purchase new cars before the tariffs went into effect, which many believe will raise car prices. According to S&P Global Mobility’s tariff analysis, the costs of importing vehicles, auto manufacturing in the US, and consumer vehicle costs will all rise.
Analysts warn that if tariffs are completely implemented, typical new car prices, which are currently around $48,000, might rise by up to $10,000. Lower-margin, entry-level vehicles are more vulnerable to price increases or discontinuation since they are often sourced from low-cost countries and are prone to margin compression under the new tariff regime.
Specifically, China’s car exports are under strain as US tariff hikes impact major overseas markets. Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), stated:
“The abrupt hike in U.S. tariffs will have a disastrous impact on economies such as Southeast Asia, and thus our exports to these markets will be impacted more than expected.”
March exports dipped 8% year on year, following a rise of 11% in February. Joint ventures and luxury brands suffered a 45% decline, exporting only 47,000 units. Exports from Shanghai-based EV facilities fell 82.4% in March to 4,701 units, while first-quarter exports fell 56.9% to 38,147 vehicles. The China Passenger Car Association fears that Southeast Asia, which is significantly touched by new US tariffs, may witness a decline in demand. Export growth was originally projected to slow to 10% in 2025, down from 25% in 2024, but this could potentially fall. Domestic sales surged by 14.4% to 1.97 million units in March and 6.1% to 5.18 million in the first quarter.
With that said, here are the 12 Best EV Stocks To Buy in 2025.
Methodology
We sifted through EV ETFs and online rankings to form an initial list of the 20 Best EV stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Number of Hedge Fund Holders: 10
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is among the Best EV Stocks. It is an electric vehicle manufacturer that develops products intended to excite consumers and drive change. The firm sets market-leading standards for design, technology, and sustainability. It was founded as a premium electric vehicle brand by Volvo Cars and Geely Holdings. The company has created two electric performance vehicles: Polestar 1 and Polestar 2. Geographically, the majority of its revenue comes from the United States.
Despite recent challenges, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is well-positioned for development due to its strong EV lineup, which includes the Polestar 2, 3, and 4. The company’s aggressive expansion plans for 2025 include introducing the Polestar 5 grand tourer and expanding into France, with a target of nearly tripling deliveries to 155,000 vehicles. Analysts predict revenue increases as Polestar Automotive Holding UK PLC (NASDAQ:PSNY) boosts operations and improves spending. The company’s EBITDA, which has been negative since its public debut, is predicted to be positive by 2025. The company’s international production strategy, which includes plans to produce the Polestar 3 in the United States as well as higher production in Europe and South Korea, allows it to avoid costly tariffs, however, labor costs may rise.
The $501 million in cash and $800 million in bank facilities provide a strong financial buffer for overcoming challenges, whereas the debt load, along with potential dilution from secondary offerings, is manageable in the long run.
11. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 14
ChargePoint Holdings, Inc. (NYSE:CHPT) is the largest electric vehicle charging company in the United States, with the most charging ports and locations of any network. CHPT has 70,000 plugs at around 39,000 locations. The firm operates more than four out of every ten charging points across the country. It is among the best EV stocks on our list.
The company is small and currently unprofitable, so there exists a certain risk, but investors who are not interested in putting money into companies headquartered in Beijing or Shanghai may find this closer-to-home option more appealing. Furthermore, ChargePoint Holdings, Inc. (NYSE:CHPT)’s expansion of charging infrastructure in the United States creates numerous opportunities.
The business recently introduced an innovative AC Level 2 charging architecture that allows for bidirectional charging and rates up to twice as fast. The platform is compatible with residential, business, and fleet applications in North America and Europe. ChargePoint Holdings, Inc. (NYSE:CHPT)’s initial models will be available in Europe this summer, followed by North America in late 2025, where it now holds a 61% share of the US AC Level 2 market.
10. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 17
XPeng Inc. (NYSE:XPEV) is China’s leading electric vehicle manufacturer, focusing on the midrange to high-end category and tech-savvy clientele. It is mass-producing eight pure electric models: the G3/G3i compact sport utility vehicle, or SUV; the P7 midsize sedan; the P5 compact sedan; the G9 midsize SUV; the G6 compact SUV; the X9 multipurpose vehicle; and the Mona 03 compact sedan. Retail costs for the present model portfolio range from CNY 120,000 to CNY 420,000 for popular trims with a driving range of around 460-700 km. The firm intends to launch at least ten new vehicles for its new model pipeline in 2025-27. The stock grew by more than 71.5% YTD, making it among the Best EV Stocks.
XPeng Inc. (NYSE:XPEV) is on track to become the world’s first mass producer of flying automobiles by 2026, according to its innovative “land aircraft carrier” idea, which combines a six-wheeled van and a detachable passenger drone. This innovation allows consumers to drive to a take-off spot, detach the drone, and continue their journey airborne, reducing travel time and increasing accessibility. The company exhibited its flying automobile at the 2024 Zhuhai Airshow, earning over 3,000 intended orders. By early 2026, a new facility will produce 10,000 units a year, putting the firm at the forefront of this revolutionary industry.
Barclays increased its price objective for XPeng Inc. (NYSE:XPEV) to $20 from $7. According to the analyst, the company’s vehicle deliveries in Q4 and so far in Q1 are more than three times what was seen in the first half of 2024. According to the business, its model update and new product launch momentum will be solid in 2025. However, Barclays believes the stock’s price is “stretched” following its recent surge.
9. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO) is ranked ninth on our list of the Best EV Stocks. It is a Chinese electric car producer, has been publicly listed since September 2018, but many initial public offerings by other Chinese electric car makers have sparked investor interest in it.
The firm is benefiting from high client demand in China. After reporting 221,970 vehicle deliveries in 2024, a 38.7% jump over 2023, NIO Inc. (NYSE:NIO) announced significant growth in the first quarter of 2025, with 42,094 vehicle deliveries, 40.1% higher than the same time in 2024. As projected, total vehicle revenue climbed. The company reported automotive revenue of around $7.98 billion in 2024, reflecting an 18.2% spike over the previous year. In addition, its gross profit margin rose from 5.5% in 2023 to 9.9% in 2024.
On its fourth quarter 2024 conference call, NIO Inc. (NYSE:NIO) described the ET9 as “a flagship smart executive sedan” and announced that sales will begin in March 2025.
In 2024, the company installed 3,245 power exchange stations worldwide and manufactured over 25,000 power chargers. During the New Year’s holiday, a record 137,000 battery changes were completed in one day.
8. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 24
Lucid Group, Inc. (NASDAQ:LCID) is a technology and automobile firm. It creates the next generation of electric vehicle (EV) technology. The firm provides its own geographically scattered retail and service sites, as well as direct-to-consumer internet and retail sales. It also includes a product roadmap outlining future automotive programs and technology. Its emphasis on in-house hardware and software innovation, vertical integration, and a fresh approach to engineering and design resulted in the creation of the Lucid Air. The Lucid Air is a luxury sedan that revolutionizes both the luxury car category and the electric vehicle space. Its geographic segments include North America, the Middle East, and Other International.
The stock grew by more than 4% over the past year, making it one of the Best EV Stocks. In Q4 2024, Lucid Group, Inc. (NASDAQ:LCID)’s revenue rose 49% from the same time a year ago to $234.5 million, above analysts’ average forecast by $22.7 million. The company’s loss per share, excluding certain items, was 22 cents, compared to an average estimate of 28 cents.
After producing 9,029 automobiles in 2024, the luxury electric car manufacturer anticipates tremendous expansion, with 2025 production of almost 20,000 vehicles. Lucid Group, Inc. (NASDAQ:LCID) delivered 10,241 vehicles in 2024, marking a 71% surge over 2023. The firm raised approximately $4.2 billion in additional financing in 2024, which will assist in covering company losses as it expands production.
7. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 28
Li Auto Inc. (NASDAQ:LI) is China’s top manufacturer of new energy vehicles (NEVs), developing plug-in hybrid electric sport utility vehicles (SUVs) for family use. The firm invested heavily in its range-extension powertrain, which has become a key selling factor for its affordable automobiles. Plug-in hybrid electric vehicles, or PHEVs, are significantly less expensive than battery electric vehicles, or BEVs, because they utilize fewer batteries.
Li Auto Inc. (NASDAQ:LI) remains one of the Best EV Stocks due to its explosive growth path. In Q4 2024, the firm supplied over 158,000 vehicles, establishing a new quarterly record. Full-year deliveries exceeded 500,000 units, making it the first emerging NEV and Chinese premium auto brand to achieve this milestone. Total deliveries in 2023 were over 373,000, showing a 35% rise in sales even as other EV stocks struggled. One key reason for this is its premium appeal, with the Li AD Max accounting for more than 80% of orders in China for models priced above $55,000.
Jefferies boosted Li Auto Inc. (NASDAQ:LI)’s price objective to $37.20 from $31 and maintained its Buy recommendation on the stock. According to the analyst’s research note, the company “has more cards to play” in the second half of the year, and the market has yet to price in its artificial intelligence goals. The company believes that the recent resurgence of Mega sales is a result of Li’s “early mover strategy” in the widespread installation of supercharging stations on roads.
6. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) is ranked sixth among the Best EV Stocks. It was formed by the merger of US-based Fiat Chrysler Automobiles, or FCA, and French-based Peugeot, or PSA, in January 2021, resulting in the fourth-largest automotive original equipment manufacturer, or OEM, by vehicle sales. Its brands include Fiat, Jeep, Chrysler, Ram, Peugeot, Citroen, Opel, Alfa Romeo, and Maserati. The business operates in more than 30 countries and services customers in 130 marketplaces.
Stellantis N.V. (NYSE:STLA) provides an extensive lineup of EVs, including battery EVs and hydrogen fuel cell automobiles. The business plans to launch over 75 battery EV vehicles by 2030 as part of its “Dare Forward 2030” strategy.
Stellantis N.V. (NYSE:STLA) displayed strong inventory management in 2024, lowering US dealer stock from 430,000 units at the midpoint to 304,000 units by the end of the year, exceeding its objective of 330,000. The firm also expanded its global footprint with exciting new product debuts, such as the Citroen C3, Dodge Charger, Jeep Wagoneer S, Citroen C3 Aircross, Opel Frontera, and Fiat Grande Panda. Despite dealing with obstacles, it remained committed to shareholder returns, proposing a dividend of EUR 0.68 per share, totaling EUR 1.7 billion, along with a EUR 300 million deal with Comau. The company’s collaboration with Leapmotors in China was fruitful, with Leapmotors reaching profitability in Q4 2024 and doubling sales to 300,000 units.
5. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 36
Albemarle Corporation (NYSE:ALB) is the largest and most notable manufacturer of lithium and one of the Best EV Stocks. The company is one of the world’s major lithium miners, with a production capacity of 225,000 metric tons, and intends to nearly triple output by 2030. Lithium supply chain difficulties are complex, and trade rules may complicate matters further in 2025. However, as a commodity stock that profits in part from broader market-wide pricing patterns, any shortages or supply bottlenecks will naturally raise lithium prices if matters do not turn out well, benefiting the firm’s bottom line as a result.
Albemarle Corporation (NYSE:ALB) has historically attracted dividend investors with a consistent 2.18% yield despite a modest five-year track record. The company’s recent $0.405 dividend announcement boosted short-term gains, but the true value rests in its long-term potential in the electric vehicle industry.
Investors should be aware of potential shareholder dilution, but management has shown solid financial control. Albemarle Corporation (NYSE:ALB) earned $702 million in operating cash flow last year, despite lithium prices dropping by a third, displaying resilience that works well for its patient shareholders.
4. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 40
When Rivian Automotive, Inc. (NASDAQ:RIVN) went public, the company had hardly delivered any of its SUVs or electric trucks, so buying the shares was a huge risk. In 2021, the firm produced more than 1,000 vehicles, which is a small figure when compared to Tesla and other significant automakers. Deliveries were 51,579 automobiles in 2024, with the business projecting 46,000 to 51,000 vehicle deliveries in 2025. Although the delivery estimate is lower than in 2024, it reflects the firm’s decision to halt production lines at its Illinois factory for one month in late 2025 in preparation for the R2’s production debut in the first half of 2026. The stock grew by more than 43% in the last year, making it among the Best EV Stocks.
Rivian Automotive, Inc. (NASDAQ:RIVN) is taking a risk by vertically integrating crucial components such as electronics, the propulsion platform, and software. The strategy may pay off if the business can swiftly increase output in the next years, but it will also result in higher costs in the short term.
Rivian Automotive, Inc. (NASDAQ:RIVN) is moving toward profitability. It reported its first quarterly gross profit of $170 million in Q4 2024. The company has $7.7 billion in cash on its balance sheet, which means that it can afford to lose significant sums as production ramps up. However, if the firm encounters a hindrance, it may face major financial difficulties. The firm is valued at more than $13 billion, which appears to be a reasonable price given its sales.
3. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) is one of the top US EV manufacturers as well as one of the Best EV Stocks. It is turning around by focusing on light-truck models in the United States, which is a wise decision given that light trucks account for more than 80% of new light-vehicle sales in the US. The firm’s task is to grow market share profitably while elevating Lincoln to a worldwide premium brand, scaling electric vehicles, and controlling expenditures such as excessive warranty spending.
Ford Motor Company (NYSE:F) posted profitable results for the fourth quarter of 2024. The company disclosed sales of $48.2 billion, a 5% rise over the same period last year. It generated solid cash flow throughout the year, with $15.4 billion in operating cash flow and $6.7 billion in free cash flow. The business forecasts adjusted EBIT to be between $7.0 billion and $8.5 billion in 2025, with adjusted free cash flow ranging from $3.5 billion to $4.5 billion. Capital expenditures are projected to range between $8 and $9 billion.
Ford Motor Company (NYSE:F) shares rose in afternoon trade on Monday, April 14, after President Trump told reporters that his administration is “looking at something to help car companies” as they gradually shift manufacturing to the United States.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 68
General Motors Company (NYSE:GM) is an American multinational automobile manufacturer that is among the Best EV Stocks. The company has global reach and capabilities, and it is renowned for its Chevrolet, Buick, GMC, and Cadillac brands. The firm provides a diverse range of electric and gasoline-powered automobiles.
General Motors Company (NYSE:GM) is working to expand its EV offering and saw great success in 2024. In the fourth quarter of 2024, the business recorded a 21% rise in total sales year-on-year. Sales of electric vehicles surged by 50%, driving this boom. It reported a 125% surge in EV sales in 2024. This helped the firm double its EV market share over the year, with EV sales climbing steadily through 2024. In Q4, the firm sold 42,000 EVs, a 10,000 increase over Q3 and nearly double the sales in Q2.
The business is also incorporating new technology into its automobiles. In February 2025, General Motors Company (NYSE:GM) completed its acquisition of Cruise Holdings, which will become a wholly owned subsidiary of GM, focused on autonomous car technologies and improved driver-aid systems. It plans to integrate Cruise technology into Super Cruise, its hands-free driving assistance system.
Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding General Motors Company (NYSE:GM) in its Q4 2024 investor letter:
“General Motors Company (NYSE:GM) reported strong Q3 earnings results and improved free cash flow guidance. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, we believe it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”
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.
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