In this article, we discuss the 12 biggest EV stocks in the world heading into 2025, along with the latest updates around the EV industry.
Vehicle Market Outlook for 2025 Reflects Mixed Opportunities
According to the S&P Global Mobility report, global vehicle sales in 2025 are expected to reach 89.6 million units, growing 1.7% from 2024. However, several challenges, including high interest rates, economic uncertainty, and evolving electrification policies, are likely to limit growth. In the US, the incoming administration’s policies, including tariffs and deregulation, could further complicate the market. The European market is projected to grow modestly due to economic risks and stricter emission rules.
Meanwhile, China’s vehicle market is expected to see continued growth, especially in new energy vehicles, supported by incentives and subsidies. Global production is forecast to decline by 0.4%, with regional variations. Electric vehicles are still a growth sector, with battery electric vehicle sales projected to reach 15.1 million units, a 30% increase from 2024, the report states. However, uncertainties regarding infrastructure, policies, and supply chains persist.
China’s Electric Vehicle Surge Set to Outpace the World
China is set to lead global EV sales, with domestic EV sales expected to exceed 12 million units by 2025, a 20% increase from the previous year, as reported by the Financial Times. This growth comes as traditional car sales are expected to decline by over 10%. China’s EV success is attributed to advancements in technology and resource supply chains, lowering manufacturing costs. While EV growth has slowed in Europe and the U.S., China’s market continues to expand rapidly, overtaking Western competitors.
However, intense competition and oversupply in the domestic market could lead to consolidation among Chinese manufacturers. The market is anticipated to face challenges in 2025 due to policy changes, but strong growth is expected to resume later in the decade.
New Approach for Reshaping the U.S. Auto Sector
According to a Bloomberg report, advisers to President-elect Donald Trump are proposing a two-pronged strategy to reshape the U.S. auto industry. The plan includes cutting federal subsidies for EVs while fostering a domestic supply chain for their production. This approach aims to prioritize U.S. automakers without taxpayer support for consumers. Recommendations also include easing environmental reviews, speeding up permits for EV projects, and expanding tariffs on EV-related imports.
Moreover, federal incentives like the $7,500 tax credit for EV buyers would be repealed, and fuel economy and tailpipe pollution regulations would return to 2019 levels. The proposals also seek to support domestic manufacturing, including EV battery production, the report states. Additionally, the transition team is considering deregulating the autonomous vehicle industry and easing reporting requirements for carmakers using automated driving technologies.
Potential U.S. Tariffs Could Undermine Canada-U.S. Automotive Trade
There are growing concerns that President-elect Donald Trump’s proposed 25% tariffs on Canadian imports could harm the recovering Canadian auto industry, especially in Ontario, where major automakers produce vehicles largely for U.S. consumers, as per CNBC.
Ontario Premier Doug Ford warned that such tariffs could increase vehicle prices, slow production, and cost jobs in both Canada and the U.S. Trump’s tariffs, intended to address national security concerns, could add significant costs to vehicles and automotive parts from Canada, Mexico, and China. The report states that while Canada’s auto exports to the U.S. are substantial, industry leaders fear the tariffs could disrupt this balance, negatively impacting both sides. Ontario Premier called for closer collaboration between Canada and the U.S. rather than imposing tariffs on their closest ally.
12 Biggest EV Stocks In the World Heading into 2025
Our Methodology
For this article, we created a list of the largest auto manufacturers in the world that manufacture and sell EVs. We then narrowed our list to 12 stocks with the biggest market cap and were traded on either the NYSE, NASDAQ, or OTC markets. The 12 biggest EV stocks in the world are listed in ascending order of their market cap. We also added the hedge fund sentiment around each stock.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Biggest EV Stocks In the World Heading into 2025
12. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 24
Market Capitalization: $37.6 Billion
Stellantis N.V. (NYSE:STLA) designs, engineers, manufactures and sells automobiles, light commercial vehicles, engines, transmission systems, and mobility services globally. The company offers a range of vehicles, including luxury, premium, and American and European brands, along with parts, services, and financing options. Its products are sold under various brand names, including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, and Peugeot, among others.
Stellantis (NYSE:STLA) is navigating a global product transition, which has led to production gaps and inventory reductions, especially in North America. Additionally, the European market has posed difficulties, contributing to lower sales and an unfavorable product mix. These factors, combined with pricing and foreign exchange pressures, have impacted the company’s performance during the recent period.
However, the company is focused on rebuilding trust with key stakeholders following tensions under former CEO Carlos Tavares. CFO Doug Ostermann highlighted the company’s commitment to improving margins and potentially paying a dividend next year, as per Bloomberg. While the company faces challenges like a sales decline in the U.S. and excess capacity in Europe, it is confident in its ability to improve profitability, partly due to progress in reducing U.S. inventories. Stellantis is also investing in new Ram and Jeep models.
According to Ariel Investments’ Q3 investor letter, Stellantis (NYSE:STLA) experienced lower sales and production issues but is addressing inventory challenges and maintaining its buyback and dividend plans. Here is what the firm 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.”
11. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 36
Market Capitalization: $40.16 Billion
Ford Motor Company (NYSE:F) designs, manufactures and services a variety of vehicles, including trucks, cars, SUVs, and luxury Lincoln models, worldwide. It operates through several segments: Ford Blue, Ford Model E, Ford Pro, Ford Next, and Ford Credit. The company sells vehicles and parts through dealers and distributors, serving both retail and commercial customers, including fleet operators, rental companies, and governments. Ford also provides vehicle financing and leasing, including retail installment contracts and direct financing leases for both new and used vehicles.
Ford’s strategy for the EV market has been proactive, focusing on cost reduction, efficient battery production, and scaling EV volumes. Despite a 35% growth in EV volumes, the company faces pricing pressure and a competitive environment, with over 150 new EV models expected in North America by 2026. To stay ahead, Ford has reduced $1 billion in EV costs this year, revamped its battery footprint, and focused on offering profitable EVs within 12 months.
Additionally, the company emphasizes software and repair services as key revenue growth areas, with Ford Pro seeing significant success. However, challenges like rising warranty costs and inflation remain obstacles to achieving record EBIT. Ford expects steady improvements in cost management and capital efficiency, forecasting a solid 2025 outlook. For the future, CEO Jim Farley also considers the shift toward affordable EVs and changes in vehicle mix as important factors to consider, though the company’s truck and Pro segments are performing well.
10. Mahindra & Mahindra Limited (OTCPK:MAHMF)
Number of Hedge Fund Holders: N/A
Market Capitalization: $41.2 Billion
Mahindra & Mahindra Limited (OTCPK:MAHMF) offers a diverse range of products and services across automotive, farm equipment, financial services, real estate, hospitality, and other sectors. Some of its offerings include passenger and commercial vehicles, electric vehicles, motorcycles, and defense products. The company also produces construction and road equipment under its EarthMaster and RoadMaster brands.
In August 2024, CEO and Managing Director of Mahindra Group (parent company) Anish Shah said that the company plans to invest over 120 billion rupees (INR 1 = US$0.012) in the next three years to accelerate its electric vehicle rollout. The company aims for 20-30% of its passenger cars to be electric within three to four years.
In November, Reuters reported that Mahindra & Mahindra (OTCPK:MAHMF) introduced two new electric SUVs, the BE 6e and XEV 9e, aiming to strengthen its position in India’s competitive SUV market, currently led by Hyundai and Toyota. Priced at around $22,500 and $26,000, these vehicles offer a range of over 500 km per charge. Unlike rivals’ petrol or hybrid models, Mahindra’s EVs focus on lower running costs. The company plans to produce 90,000 units annually, increasing to 200,000 by March 2026, with deliveries starting in February. Mahindra plans to launch five more models by 2030. This expansion is part of a $2 billion EV budget for 2022-2027, with over $500 million already spent on the new platform and current models.
9. Honda Motor Co., Ltd. (NYSE:HMC)
Number of Hedge Fund Holders: 11
Market Capitalization: $44.46 Billion
Honda Motor Co., Ltd. (NYSE:HMC) is a Japanese company that designs and manufactures motorcycles, cars, power products, and other items. It operates in four segments: motorcycles, automobiles, financial services, and power products, including engines and HondaJet aircraft. The company also provides after-sales services.
While Honda Motor (NYSE:HMC) is expanding its EV operations, it still has a lot to catch up and is far off from cracking the top 10 companies in terms of EVs sold. However, the company is in talks with Nissan to merge by 2026, aiming to create the world’s third-largest auto group by sales, as reported by Reuters. This merger is seen as a response to the rising competition from Chinese electric vehicle makers like BYD and Tesla. The company announced signing a memorandum of understanding (MOU) to explore a potential business integration through the establishment of a joint holding company on December 23.
The collaboration aims to improve their competitiveness in the rapidly changing automotive industry, focusing on electric vehicles and vehicle intelligence. The companies expect synergies in areas such as vehicle platform standardization, R&D integration, manufacturing optimization, and purchasing functions, aiming for a global sales revenue exceeding 30 trillion yen (1 yen = US$0.0063). The integration is expected to be completed by August 2026, with both companies becoming subsidiaries of the new holding company.
8. Volkswagen AG (OTCPK:VWAGY)
Number of Hedge Fund Holders: N/A
Market Capitalization: $46 billion
Volkswagen AG (OTCPK:VWAGY) manufactures and sells automobiles from 114 production sites across Europe, the Americas, Asia, and Africa and sells vehicles in over 150 countries. The company develops, produces, and markets cars, commercial vehicles, motorcycles, engines, EVs, and vehicle software, along with providing financing, leasing, insurance, and mobility services.
In recent days, Volkswagen has been facing major problems as its CEO Oliver Blume highlighted the need for significant cost reductions in Germany, where labor costs are twice the European average. While group sales and new product demand are strong, high costs have led to a 20% drop in operating profits over nine months. Past missteps, including €32 billion spent on the diesel scandal and delays in electric vehicle development, have further strained the company.
The company also faced another crisis as thousands of workers protested against potential factory closures, job cuts, and wage reductions of up to 18%. However, the company has finalized the “Zukunft Volkswagen” (Future Volkswagen) agreement with IG Metall and its Works Council to restructure operations and reduce costs, as reported by Reuters. The plan includes cutting labor costs by €1.5 billion annually and achieving total savings of over €15 billion per year through measures such as reducing production capacity by 734,000 units across German plants. This adjustment aims to enable investments in future products and achieve the Volkswagen Passenger Cars brand’s return-on-sales target.
Volkswagen Commercial Vehicles and Group Components will focus on cost efficiency, with targeted labor cost reductions and flexible working models. The agreement aims to position Volkswagen as a leading global volume manufacturer by 2030 while ensuring the sustainability of its German operations.
7. Bayerische Motoren Werke AG (OTCPK:BMWKY)
Number of Hedge Fund Holders: N/A
Market Capitalization: $49.6 Billion
Bayerische Motoren Werke AG (OTCPK:BMWKY) is a global company that designs, manufactures, and sells automobiles, motorcycles, spare parts, and accessories. It operates in three segments: Automotive, Motorcycles, and Financial Services. The Automotive segment produces cars and related products under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment manufactures motorcycles and scooters under the BMW Motorrad brand.
In Q3, BMW Group faced challenges due to technical issues related to the Integrated Braking System (IBS) and weak demand in China. Despite these setbacks, BMW saw a 10.1% rise in BEV deliveries, with fully electric vehicles accounting for 19.1% of sales. In Europe, BMW’s sales grew by 7.6%, strengthening its market position, while sales remained stable in the US. The company plans a significant inventory reduction in Q4 and confirmed its auto free cash flow forecast. The BMW Group anticipates increasing deliveries in Q4.
In China, BMW is focusing on growing its BEV market share, with the MINI and other electric models being produced locally to mitigate costs. The company is adapting to the shifting powertrain demand, preparing for the BEV shift by 2030 with new technology and a flexible approach to powertrains.
At the company’s latest earnings call, the company’s CEO Oliver Zipse also mentioned that BMW benefits from having local production facilities in both the U.S. and China, which provides natural protection against tariff changes. In the U.S., more than two-thirds of their production is sold domestically, while in China, 85% of their sales are locally produced. This local manufacturing footprint helps BMW mitigate the impact of potential tariffs, providing a competitive advantage in these markets.
6. Mercedes-Benz Group AG (OTCPK:MBGAF)
Number of Hedge Fund Holders: N/A
Market Capitalization: $53.54 Billion
Mercedes-Benz Group AG (OTC:MBGAF) is a German automotive company that operates globally through its Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility divisions. It designs, manufactures, and sells cars and vans under brands like Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class, and related parts and accessories. The company also offers financing, leasing, fleet management, insurance services, and digital solutions for charging and payments.
While Mercedes-Benz faced challenges due to product transitions, particularly with the G-Class, and a subdued EV market, leading to a 15% drop in electrified vehicle sales, its plug-in hybrid sales rose by 10%, especially in the US in Q3. In 2024, EVs, including BEVs and plug-in hybrids, are anticipated to account for 18% to 19% of the company’s total vehicle sales. By EV sales volume, Mercedes-Benz takes one of the top 10 spots with nearly 277,600 sales in the first 9 months of 2024, as per EV Volumes.
For the future, the company’s CFO, Harald Wilhelm said that while Mercedes-Benz continues to prioritize achieving European CO2 targets through increased xEV adoption, BEV demand in Europe has been weaker than expected by regulators and manufacturers. Despite this, the company is committed to expanding xEV offerings, including plug-in hybrids, which currently align better with market demand.
Wilhelm outlined key elements of the upcoming EV product lineup. The CLA, based on the MMA platform, will launch in 2025, introducing advancements in software, powertrain, range, and Level 2+ ADAS. By 2026, midsize EVs like the electric C-Class and GLC will follow, alongside AMG’s high-performance electric models featuring the YASA engine. Wilhelm also mentioned significant midlife updates for models like the GLE and S-Class in 2026.
5. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 64
Market Capitalization: $59.5 Billion
General Motors Company (NYSE:GM), recognized for its brands like Chevrolet and Cadillac, is advancing toward an all-electric future. On October 8, the company announced plans to drop the “Ultium” branding for its EV batteries and technologies following a strategic review but will maintain its EV and battery initiatives. In Q3, the company achieved record EV sales of 32,095 units, marking a 60% year-over-year growth, and plans to introduce five ICE models and two new EVs. The company, now the second-largest EV seller in North America, aims to produce 200,000 GM-branded EVs in 2024.
The company is expanding its EV manufacturing and making strides in EV infrastructure, in partnership with EVgo Inc. General Motors (NYSE:GM) has opened over 2,000 public fast charging stalls across 390 locations in 45 U.S. metropolitan markets as part of their collaboration to enhance EV charging access. These stalls serve diverse needs, including renters and those without home charging options, at sites like grocery stores and retail centers. The partnership aims to reach 2,850 DC fast charging stalls, with flagship locations in states like California, New York, and Texas.
Moreover, ChargePoint and GM have announced plans to expand EV infrastructure in the U.S. by installing hundreds of ultra-fast charging ports at strategic locations, with public access expected by the end of 2025. These initiatives aim to improve EV adoption by offering reliable, accessible charging and incentivizing third-party operators to expand infrastructure.
4. Xiaomi Corporation (OTCPK:XIACY)
Number of Hedge Fund Holders: N/A
Market Capitalization: $107.5 Billion
Xiaomi Corporation (OTC:XIACY) is an investment holding company offering both hardware and software services and electric vehicles globally. The company released the Xiaomi SU7 Series in March 2024 which received positive user feedback. By Q3 2024, revenue from the smart EV and related initiatives reached RMB9.7 billion, with a 17.1% gross profit margin.
Deliveries of the Xiaomi SU7 Series hit 39,790 vehicles, and production surpassed 100,000 units by November. The company aims to deliver 130,000 vehicles in 2024. The SU7 Series achieved top safety ratings in key categories and introduced advanced features like City Navigate on Autopilot and plans for Hyper Autonomous Driving by December.
Xiaomi’s stock has surged significantly this year, driven by its rapid entry into China’s EV market, where it’s challenging leaders like BYD and Tesla. The company is preparing to launch a new electric SUV, SU7 Ultra, boasting impressive performance and technology, with 3,680 pre-orders within 10 minutes. The vehicle is set for official release in March 2025 and could boost its sales significantly in 2025. Xiaomi’s EV business, already contributing 10% of its revenue, and could surpass its smartphone segment as the main growth driver.
3. BYD Company Limited (OTCPK:BYDDY)
Number of Hedge Fund Holders: N/A
Market Capitalization: $109.3 Billion
BYD Company Limited (OTC:BYDDY) operates in the automotive and battery sectors across China and internationally, with a main focus on new energy vehicles (NEV). The company has two main segments: one focusing on mobile handset components, assembly services, and other products, and another on automobiles, auto-related products, and urban rail transportation. It manufactures and sells vehicles, auto parts, power batteries, and solar products, and also provides services like automobile leasing and after-sales support.
BYD (OTC:BYDDY) is the biggest NEV seller in the world by volume as it sold over 3.76 million NEVs in the first eleven months of 2024. In November, BYD set new sales records, selling 506,804 NEVs, a 67.87% year-over-year increase and a 0.83% rise from October. Passenger NEVs made up 504,003 units, with BEVs increasing by 4.46% to 198,065 units, and PHEVs rising 133.13% to 305,938 units, despite a small sequential decline in PHEV sales. Commercial NEVs grew significantly by 433.52% year-over-year to 2,801 units. With these numbers, the company is on track to exceed its annual sales target of 4 million vehicles in 2024, surpassing Honda and Ford.
2. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 18
Market Capitalization: $268.2 Billion
Toyota Motor Corporation (NYSE:TM) produces and sells passenger cars, commercial vehicles, and related accessories worldwide. Operating under the Toyota and Lexus brands, it offers a range of vehicles, including compact cars, SUVs, minivans, trucks, and buses. It also provides services, including retail and wholesale financing, leasing, insurance, and credit cards.
While the company takes the second biggest EV stock by market cap spot, most of the company’s revenue is generated from ICEs. The company sold less than 200,000 EVs in the first nine months of 2024 compared to Tesla’s 1.3 million. Most of those sales were attributed to hybrid EVs. However, the company is scaling its operations to catch up to the growing EV market. According to the company’s recent 2024 North American Environmental Sustainability Report, 77% of Toyota and Lexus vehicles currently offered for sale or lease in North America come with an electrified option, with additional models expected soon.
Apart from electric cars, Toyota (NYSE:TM) is also collaborating with Joby Aviation to develop electric air taxis for commercial passenger services. In November, the companies announced the completion of Joby’s first international exhibition flight in Japan, held at Toyota’s Higashi-Fuji Technical Center near Mount Fuji. Toyota engineers have been working alongside Joby in California, and in 2023, they signed a long-term agreement for Toyota to supply key components for Joby’s aircraft. Moreover, Toyota also committed an additional $500 million investment in Joby to support the air taxi’s commercial production, bringing its total investment to nearly $900 million.
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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