12 Biggest EV Stocks In the World Heading into 2025

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

Market Capitalization: $1.465 Trillion

Tesla, Inc. (NASDAQ:TSLA) specializes in designing, manufacturing, and selling electric vehicles and energy products. Its main focus is on the Automotive segment, offering electric cars, regulatory credits, used vehicles, supercharging services, and vehicle insurance. The company sells sedans and SUVs through direct and used car sales, supports customers with service locations and mobile technicians, and provides financing and warranties. Tesla also operates a network of Superchargers and offers in-app upgrades for its vehicles.

Tesla (NASDAQ:TSLA) is the biggest EV stock in the world. While the company faces intense competition from other brands, especially in China, it still dominates the global BEV industry with a 17.5% market share. Moreover, Tesla’s dominance in the EV market is less about maintaining market share and more about leading in production growth and profitability. As the EV market expands, Tesla’s production scales rapidly, allowing substantial growth even with increased competition.

For example, in Q3, Tesla achieved record vehicle delivery volumes, with year-over-year and sequential growth. Regulatory credit revenue was the second-highest in company history, as competitors work to meet emissions standards. Additionally, the cost of goods sold per vehicle reached an all-time low of ~$35,100.

Tesla (NASDAQ:TSLA) continues to focus on making EVs affordable, with plans to launch more budget-friendly models starting in early 2025. The company also aims to provide autonomous transport at a cost lower than rideshare and public transit.

While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 the cheapest AI stock.

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Disclosure. I own TSLA shares. I have no plans to change my position in the next 48 hours. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.