Ownership of EVs is rising in the US. On March 16, CNBC reported that currently there are nearly 6 million battery EVs and plug-in hybrids on the roads. While this represents only a small portion of the overall vehicle market, it marks significant progress and automobile manufacturers remain invested in the transition away from gasoline. It is worth noting that in 2024 sales of traditional internal combustion engine cars fell below 80% for the first time in modern history.
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The steady growth in EV sales suggests that consumer concerns about range anxiety are diminishing. However, this fear of running out of battery power remains a challenge for the EV market. The EV industry is working to address this by installing enough chargers in public places and expanding public charging infrastructure to drive wide-scale EV adoption. Despite many efforts, charging companies are finding it difficult to maintain growth because of political uncertainties.
The Trump administration has proposed stripping away federal incentives for EVs and instead prioritizing oil and gas policies. This creates a challenging environment for EV manufacturers and charging companies. Moreover, tariffs on essential steel and aluminum are further challenging automakers and their operations.
Despite current challenges, many believe that the EV sector is expected to grow significantly as it aligns with global sustainability goals and technological advancements. Additionally, innovations in battery technology and charging infrastructure continue to make EVs more affordable and feasible.
With this background in mind, let’s take a look at the 12 cheap EV stocks to buy according to hedge funds.
A brand new electric vehicle charging at a charging station with a city skyline in the background.
Methodology
To compile our list of the 12 cheap EV stocks to buy according to hedge funds, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. To find cheap EV stocks, we narrowed down our selection by looking for stocks trading at under 20 times their forward earnings as of March 17, 2025. Next, we focused on the top 12 cheap EV stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 12 cheap EV stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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 Cheap EV Stocks To Buy According to Hedge Funds
12. Niu Technologies (NASDAQ:NIU)
Forward P/E: 6.42
Number of Hedge Fund Holders: 5
Niu Technologies (NASDAQ:NIU) is a Chinese electric scooter company that ranks among cheap EV stocks to invest in. The company designs, manufactures, and sells smart electric two-wheeler vehicles including electric motorcycles, mopeds, bicycles, as well as kick-scooters and e-bikes. The products are sold in more than 50 countries around the world. In 2024, Niu Technologies (NASDAQ:NIU) actively worked on expanding its product offerings and strengthening sales channels. The company refined its core N, M, and U series and also introduced the new F series. In China, Niu Technologies (NASDAQ:NIU) opened about 900 new stores in 2024, with approximately half of them in Tier 3 cities as the company aims to penetrate previously underrepresented markets.
A key area of focus for the company in 2024 was establishing direct distribution operations in key markets like Germany, Italy, France, and the US. Niu Technologies (NASDAQ:NIU) set up local entities, hired teams, and developed localized sales networks. These efforts helped expand the sales network to over 120 active dealers by the end of 2024. With these initiatives in place, Niu Technologies (NASDAQ:NIU) expects to reach 1.3 million to 1.6 million unit sales in 2025, representing a 40% to 70% increase year-over-year. The company is strategically expanding its market reach, both domestically and internationally.
11. Toyota Motor Corporation (NYSE:TM)
Forward P/E: 8.22
Number of Hedge Fund Holders: 13
Toyota Motor Corporation (NYSE:TM) is a Japanese multinational automotive manufacturer that ranks among cheap EV stocks to buy. The company offers over 100 models of engine-only vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, and fuel-cell electric vehicles in more than 170 countries and regions. Toyota Motor Corporation (NYSE:TM) plans to launch 30 battery EV models globally by 2030.
The company is actively transitioning from its hybrid-focused portfolio to expanding its presence in the EV market. Toyota Motor Corporation (NYSE:TM) aims to sell 3.5 million battery EVs annually by 2030. As part of this strategy, the company is launching EVs in various markets. On March 7, Reuters reported that Toyota Motor Corporation (NYSE:TM) began selling a $20,000 smart electric car in China. The company launched its most affordable smart EV, the Bozhi 3X, which received over 10,000 orders within an hour of its launch. Additionally, on March 12, Toyota Motor Corporation (NYSE:TM) announced new models, including the C-HR+, bZ4X, and Lexus RZ, in Europe to expand its BEV lineup in the region.
10. Honda Motor Co., Ltd. (NYSE:HMC)
Forward P/E: 6.46
Number of Hedge Fund Holders: 14
Honda Motor Co., Ltd. (NYSE:HMC), or simply Honda, is a Japanese multinational corporation. The company operates globally and its main products are automobiles, motorcycles, and power products. Honda Motor Co., Ltd. (NYSE:HMC) is aiming to make battery-electric and fuel-cell electric vehicles represent 100% of its global vehicle sales by 2040. Globally, the company plans to launch a total of seven “0 Series” EV models ranging from small to large size by 2030. HMC is one of the best cheap EV stocks to invest in.
The company is investing heavily in its EV strategy. In January 2025, Honda Motor Co., Ltd. (NYSE:HMC) unveiled its first two models in the new Honda 0 series at the Consumer Electronics Show (CES), the Honda 0 SUV and Honda 0 Saloon prototypes. The company announced that production of models based on both prototypes will begin in North America in 2026 at Honda’s EV Hub in Ohio and will later expand to global markets. Additionally, Honda Motor Co., Ltd. (NYSE:HMC) is collaborating with Renesas Electronics Corporation to develop advanced system-on-chip technology for future 0 Series models in the late 2020s and plans to introduce a Home Energy Management System to make EV ownership easier.
9. Sigma Lithium Corporation (NASDAQ:SGML)
Forward P/E: 19.08
Number of Hedge Fund Holders: 21
Sigma Lithium Corporation (NASDAQ:SGML) is a global leader in lithium production. The company is one of the world’s largest producers of lithium for EV batteries and energy storage solutions. At its Grota do Cirilo operation in Brazil, Sigma Lithium Corporation (NASDAQ:SGML) produces Quintuple Zero Green Lithium, which is created with zero carbon emissions, no potable water, no toxic chemicals, and no tailings dams. SGML ranks among the best cheap EV stocks to buy.
In September 2024, Sigma Lithium Corporation (NASDAQ:SGML) held its Investor Day and outlined plans to increase its industrial capacity to approximately 125,000 tonnes per year of lithium carbonate equivalent (LCE) by 2026. This increase will come from 2 new industrial lines, with production set to begin in 2025 and 2026. Recently, Sigma Lithium Corporation (NASDAQ:SGML) reported that it remains on track to double its production capacity in 2025. The company has completed all foundation earthworks for its second Greentech industrial plant on time and within budget, with commissioning expected to begin in Q4 2025. Sigma Lithium Corporation (NASDAQ:SGML) also emphasized its cost-efficient approach. The company is leveraging its position as one of the world’s lowest-cost lithium producers to meet the growing demand for lithium. Sigma Lithium Corporation (NASDAQ:SGML) expects the lithium market to grow significantly by the end of the decade.
8. Blue Bird Corporation (NASDAQ:BLBD)
Forward P/E: 9.45
Number of Hedge Fund Holders: 25
Blue Bird Corporation (NASDAQ:BLBD) is an American bus manufacturing and technology company that ranks among cheap EV stocks to buy according to hedge funds. The company manufactures a variety of electric and low-emission school buses. In the first quarter of fiscal 2025, which ended on December 28, 2024, Blue Bird Corporation (NASDAQ:BLBD) delivered more than 130 electric buses and reported significant growth in EV orders. This growth is fueled by programs like the EPA’s Clean School Bus Program and various state and local initiatives. By February 2025, Blue Bird Corporation (NASDAQ:BLBD) had about 1,000 electric buses either sold or in its firm order backlog, which supports its 2025 EV sales targets.
The company is looking to expand its portfolio of zero- and ultra-low-emission commercial vehicles. At Work Truck Week 2025, Blue Bird Corporation (NASDAQ:BLBD) showcased its groundbreaking propane-powered Class 5-6 stripped chassis and an advanced electric step van. Blue Bird Corporation‘s (NASDAQ:BLBD) electric-powered stripped chassis is expected to be commercially available in the first quarter of 2026, which will be followed by the propane version in the second quarter of 2026.
7. EnerSys (NYSE:ENS)
Forward P/E: 9.37
Number of Hedge Fund Holders: 30
EnerSys (NYSE:ENS) is a global leader in stored energy solutions for various markets and industrial applications. The company offers a wide range of batteries, chargers, energy systems, and related products and services. Through its products and services, EnerSys (NYSE:ENS) serves various industries, including telecommunications, defense, and electric vehicles. The company’s batteries and chargers are used in industrial electric-powered vehicles. ENS ranks among the best cheap EV stocks to buy.
The company provides batteries and chargers for electric forklifts and other industrial vehicles through its Motive Power division while its New Ventures division focuses on energy storage and management systems for applications like utility backup power and fast charging for EVs. In September 2024, EnerSys (NYSE:ENS) announced it was selected for a $199 million Department of Energy award negotiation to partially fund the company’s new lithium-ion cell production facility in South Carolina. The company plans to invest $615 million over four years in this facility. The facility will produce five gigawatt-hours (GWh) of lithium-ion cells annually and EnerSys (NYSE:ENS) plans to use these cells for various products such as NexSys iON batteries for forklifts, Alpha XRT-Li systems for communication networks, fast charging systems, and future high-energy Li6T batteries for military vehicles.
6. Stellantis N.V. (NYSE:STLA)
Forward P/E: 4.94
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) is a leading global automaker that ranks among the top cheap EV stocks to invest in. The company offers a wide range of vehicles through its portfolio of brands that include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall. The company operates in over 30 countries and serves customers across 130 markets. Stellantis N.V. (NYSE:STLA) offers a variety of EVs, including battery EVs and hydrogen fuel cell vehicles. Through its “Dare Forward 2030” plan, Stellantis N.V. (NYSE:STLA) aims to launch more than 75 battery EV models by 2030.
The company is strategically partnering with AI specialists to maintain a competitive edge while also enhancing vehicle design, manufacturing and customer experiences. In collaboration with Mistral AI, Stellantis N.V. (NYSE:STLA) is integrating advanced AI tools into various operations, including vehicle engineering, fleet data analysis, and car sales. In February 2025, through its partnership with Mistral AI, it launched an innovative in-car assistant that uses voice-activated technology to provide real-time, conversational support for drivers through natural language interactions. These efforts are part of Stellantis N.V.’s (NYSE:STLA) strategy to adopt new advancements in AI to deliver smarter, more responsive vehicles.
5. Albemarle Corporation (NYSE:ALB)
Forward P/E: 18.45
Number of Hedge Fund Holders: 36
Albemarle Corporation (NYSE:ALB) is an American specialty chemicals company that ranks among the best cheap EV stocks to buy according to hedge funds. The company provides lithium and bromine to customers in about 70 countries around the world. Albemarle Corporation (NYSE:ALB) is one of the world’s biggest suppliers of lithium for EV batteries.
The company is strategically leveraging the growing demand for lithium to support the global energy transition. Albemarle Corporation (NYSE:ALB) highlighted that in 2024, EV registrations were up 25% compared to the previous year. This increase was primarily driven by China, where demand surged by 37% thanks to balanced subsidies for battery EVs and plug-in hybrids. The Chinese market now accounts for 65% of the global market demand. Albemarle Corporation (NYSE:ALB) also pointed out that global battery costs have fallen below $100 per kilowatt hour. This makes EVs more affordable and enhances the industry’s long-term growth potential. To capitalize on these opportunities, Albemarle Corporation (NYSE:ALB) is optimizing its lithium conversion network and improving production efficiency to meet market demands. The company achieved record production at its La Negra lithium carbonate plant in Chile and Meishan lithium hydroxide plant in China during Q4 2024.
4. BorgWarner Inc. (NYSE:BWA)
Forward P/E: 7.11
Number of Hedge Fund Holders: 43
BorgWarner Inc. (NYSE:BWA) is a global company that specializes in designing and manufacturing automotive and e-mobility systems. The company offers important components for internal combustion, hybrid, and electric vehicles. BorgWarner Inc. (NYSE:BWA) is looking to expand its presence in the growing EV market through new and innovative technologies like its High Voltage Coolant Heater (HVCH). BWA ranks among cheap EV stocks to invest in.
For its HVCH technology, BorgWarner Inc. (NYSE:BWA) has secured contracts in major Asian markets, including China, Korea, and Japan. In China, a leading automaker will use the HVCH in a fully electric SUV set for production in Q2 2025. In Korea, the technology will be used in an electric pickup truck. In Japan, BorgWarner’s (NYSE:BWA) HVCH will be used in a battery-electric vehicle expected to begin production in 2028. Additionally, in February 2025, BorgWarner Inc. (NYSE:BWA) further strengthened its new energy vehicle motor business by securing 4 new projects with 3 major Chinese brands. Through new business awards, the company continues to support its future long-term profitable growth.
3. Ford Motor Company (NYSE:F)
Forward P/E: 7.61
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) is a global automotive manufacturer that is known for its Ford and Lincoln brands. ranks among the best cheap EV stocks to buy according to hedge funds. The company is heavily investing in EVs through its Ford+ Plan as it aims to lead the EV revolution. Ford Motor Company’s (NYSE:F) Model e division focuses on developing and producing EVs. The company provides a variety of vehicles including fully electric, hybrid, and traditional combustion engine options. Ford Motor Company (NYSE:F) ranks among the best cheap EV stocks to buy according to hedge funds.
In 2024, the company achieved record electrified vehicle sales of 285,291 units, an increase of 38% compared to the previous year. Electrified vehicles include hybrids, plug-in hybrids, and all-electric models. Ford Motor Company’s (NYSE:F) electric vehicle sales also set a new record in the fourth quarter of 2024 with more than 30,000 EVs sold. All of the company’s electric models, including the Mustang Mach-E, the F-150 Lightning, and the E-Transit, hit record sales in 2024. The company is focused on the development of its next-generation vehicles, which is crucial for its future success. To position itself for future growth in the EV market, Ford Motor Company’s (NYSE:F) Model e division continued to invest in future products in 2024. For the year, Model e reported a net $100 million increase in spending to support new battery plants and the next generation of EVs. This investment is part of Ford Motor Company’s (NYSE:F) strategic focus on developing affordable and high-volume EVs to boost growth.
2. ON Semiconductor Corporation (NASDAQ:ON)
Forward P/E: 16.81
Number of Hedge Fund Holders: 52
ON Semiconductor Corporation (NASDAQ:ON), or simply onsemi, is an American semiconductor manufacturing company that ranks among cheap EV stocks to invest in. The company offers over 80,000 parts, including advanced MOSFETs, Image Sensors, and Silicon Carbide technology (EliteSiC). With a focus on the EV and industrial end markets, ON Semiconductor Corporation (NASDAQ:ON) manufactures chips that are used in drive trains of EVs and other chips that help with driver-assistance systems. The company’s silicon carbide chips improve the range of EVs.
Currently, ON Semiconductor Corporation (NASDAQ:ON) is heavily focused on high-growth trends in automotive, industrial, and AI data centers. In January 2025, the company acquired Qorvo’s Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business for $115 million in cash. This transaction includes the United Silicon Carbide subsidiary and strengthens ON Semiconductor Corporation’s (NASDAQ:ON) EliteSiC portfolio. The SiC JFET technology is expected to enhance energy efficiency and power density in AI data centers, particularly in the AC-DC stage of power supply units. The technology can also help replace multiple components with a solid-state switch in battery disconnect units to improve efficiency and safety in EVs. In the industrial end-market, the SiC JFET technology will enable ON Semiconductor Corporation (NASDAQ:ON) to support certain energy storage topologies and solid-state circuit breakers.
1. General Motors Company (NYSE:GM)
Forward P/E: 4.16
Number of Hedge Fund Holders: 68
General Motors Company (NYSE:GM) is a multinational automotive corporation that designs, manufactures, and sells a range of vehicles through its brands including Chevrolet, Buick, GMC, and Cadillac. The company offers a wide range of EVs and gasoline-powered vehicles. General Motors Company (NYSE:GM) ranks among the best cheap EV stocks to buy. The company has reported consistent growth in EV sales throughout 2024. This helped General Motors Company (NYSE:GM) double its share in the EV market. The company sold 42,000 EVs in Q4, an increase of 10,000 compared to Q3 and nearly twice the sales compared to Q2. For the full year 2024, General Motors Company (NYSE:GM) reported that EV sales increased by 125%.
On March 6, TD Cowen initiated coverage on General Motors Company (NYSE:GM) with a “Buy” rating and set a price target of $105. The firm named GM as its top pick in the automotive sector. The analyst highlighted the company’s distinct advantage over other automakers derived from its Truck Franchise, which contributes significantly to its earnings. Additionally, General Motors Company’s (NYSE:GM) EV strategy is seen as uniquely positioned to help increase the stock’s value. TD Cowen expressed confidence in the company’s strong management execution as well as growth potential in EVs, autonomous vehicles (AVs), and software.
Overall, GM ranks first among the 12 cheap EV stocks to buy according to hedge funds. While we acknowledge the potential of EV companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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