The year 2024 marked a significant milestone for environmentally friendly vehicles in the US. On January 16, 2025, CNBC reported that for the first time, sales of all-electric vehicles and hybrid models made up 20% of all new car and truck sales. Motor Intelligence reported that over 3.2 million electrified vehicles were sold last year. This included 1.9 million hybrid vehicles and 1.3 all-electric vehicles.
Traditional vehicles with gas or diesel engines continued to dominate the market, accounting for 79.8% of sales. However, this marked the first time their share fell below 80% in modern automotive history.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 High Growth Energy Stocks To Invest In.
In the US, the EV market is very competitive. Out of 68 mainstream electric models tracked by Kelley Blue Book, 24 models posted an increase in sales compared to the previous year while 27 models experienced a decrease in sales volume. Additionally, 17 new models were introduced to the market.
There is not enough clarity as to how sales of all-electric and hybrid electric vehicles will perform in 2025. This uncertainty is partly due to pending potential actions by the Trump administration. However, Cox Automotive expects that 2025 will set another record for EV sales, with EVs accounting for about 10% of new vehicle sales. Including hybrids, Cox Automotive expects one out of every four vehicles sold to be electrified in 2025.
With this background in mind, let’s take a look at the 15 best EV stocks to buy according to billionaires.
A lithium battery recharging a fleet of electric vehicles in a parking lot.
Methodology
To compile our list of the 15 best EV stocks to buy according to billionaires, 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. Next, we focused on the top 10 EV stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 15 best EV stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
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).
15 Best EV Stocks To Buy According to Billionaires
15. NIO Inc. (NYSE:NIO)
Number of Billionaire Investors: 7
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO) is a Chinese multinational automobile manufacturer that designs and develops electric vehicles. The company offers premium smart electric vehicles under the NIO brand and family-oriented smart electric vehicles through the ONVO brand. NIO Inc. (NYSE:NIO) ranks among the best EV stocks to buy according to billionaires. The company is focused on distinguishing itself through technological advancements and innovative products. This strategy helped NIO Inc. (NYSE:NIO) set a new record in Q4 2024 by delivering 72,689 vehicles, marking a 45.2% increase year-over-year.
At NIO Day in December 2024, the company launched the NIO ET9, its flagship electric car that showcases advanced technology in multiple areas, including design, comfort, and intelligent driving systems. NIO Inc. (NYSE:NIO) plans to start deliveries of the ET9 by the end of March 2025. Additionally, during the event, the company introduced FIREFLY as its new high-end electric car brand, which is expected to be officially launched in April 2025. NIO Inc. (NYSE:NIO) is making strategic moves to diversify its offerings to serve a broader customer base.
14. Plug Power Inc. (NASDAQ:PLUG)
Number of Billionaire Investors: 8
Number of Hedge Fund Holders: 24
Plug Power Inc. (NASDAQ:PLUG) is an American company that ranks among the best EV stocks to buy. The company specializes in developing hydrogen fuel cell systems that replace conventional batteries in electrical equipment and electric vehicles. Plug Power Inc. (NASDAQ:PLUG) produces electrolyzers and fuel cells to serve various applications like material handling, power generation, and e-mobility. Hydrogen fuel cells enhance charging efficiency and runtime to enable hydrogen-powered engines to extend their range and carry more payload compared to other electric vehicle power solutions.
On March 5, TD Cowen analyst Jeff Osborne maintained a positive outlook on Plug Power Inc. (NASDAQ:PLUG) and reiterated a “Buy” rating with a price target of $4.00. Osborne highlighted the company’s Project Quantum Leap, a strategic initiative aimed at cutting annual costs by $150 to $200 million. This is part of Plug Power Inc.’s (NASDAQ:PLUG) broader plan to improve operations and financial performance. Osborne also noted that the company is expected to increase production at its facilities, with a new plant in Louisiana anticipated to come online in the second quarter of 2025 and another in Texas towards the end of 2026. However, Osborne noted that Plug Power Inc. (NASDAQ:PLUG) must create enough demand to match its growing supply capabilities. The company is strategically focusing on core areas like material handling, electrolyzers, and fuel production. Osborne is confident in Plug Power Inc.’s (NASDAQ:PLUG) targets and its ability to successfully execute its business plan over the coming years.