The electric vehicle sector surged in popularity during the immediate post-COVID era as investors poured money into what seemed like the future of transportation. Back then, the promise of a green revolution fueled sky-high valuations and bold predictions. But that enthusiasm has since fizzled. Most electric vehicle stocks have plunged significantly and delivered consistent losses to shareholders.
Tesla seems to be the only company capable of selling electric vehicles in the West profitably, but even that company has been under tremendous pressure due to the politicization of its brand.
After Trump’s election, things look even bleaker for these companies and many of them are plunging. That said, many analysts now think that there are buying opportunities here, especially as a large portion of Tesla customers who previously would’ve bought Teslas are now likely to buy alternative EVs. Trump may also be softer than previously thought on EVs, as EV subsidies are still in place. It’s a good idea to take a look at the EV stocks that have been sold off the most so far this year.
A fleet of electric vehicles lined up in uniform.
Methodology
For this article, I screened the worst-performing electric vehicle stocks year-to-date.
I will also mention the number of hedge fund investors in these 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).
15. Albemarle Corp (NYSE:ALB)
Number of Hedge Fund Holders In Q4 2024: 36
Albemarle Corp (NYSE:ALB) is a specialty chemicals manufacturer. The company is mainly known for its lithium business.
The stock is down significantly so far in 2025 due to the sharp drop in lithium prices, which have fallen from their peak levels in late 2022 to cyclical lows.
This decline is driven by reduced demand for energy storage solutions and electric vehicles (EVs), as well as increased competition and supply in the lithium market.
Moreover, Albemarle reported disappointing financial results for the fourth quarter of 2024. This included a 48% year-over-year revenue decline to $1.23 billion and an adjusted loss of $1.09 per share, which missed analyst expectations.
Plus, Albemarle announced plans to cut its 2025 capital expenditures by over 50% compared to 2024 levels. It aims to achieve breakeven-free cash flow by the end of the year.
The consensus price target of $104.30 implies 45.43% upside.
ALB stock is down 16.57% year-to-date.
14. Eaton Corp PLC (NYSE:ETN)
Number of Hedge Fund Holders In Q4 2024: 88
Eaton Corp PLC (NYSE:ETN) is a multinational power management company.
The stock is down significantly so far in 2025 as Eaton reported $6.2 billion in revenue for Q4 2024, which fell short of Wall Street estimates by 1.7%. The miss was primarily due to weaker sales in its eMobility and Vehicle segments.
Disruptions caused by Hurricane Helene and strikes in the aerospace industry negatively impacted sales by approximately $80 million during Q4 2024.
Moreover, concerns about tariffs have added pressure on Eaton’s stock performance, and Barclays recently revised its price target for Eaton from $325 to $315 while maintaining an equal-weight rating.
The consensus price target of $357.16 implies 31.97% upside.
ETN stock is down 18.67% year-to-date.
13. QuantumScape Corp (NASDAQ:QS)
Number of Hedge Fund Holders In Q4 2024: 22
QuantumScape Corp (NASDAQ:QS) makes solid-state lithium-metal batteries designed for electric vehicles.
The stock is down significantly so far in 2025 as QuantumScape has struggled to meet its original timeline for commercializing its solid-state batteries. It initially promised commercialization by 2024.
The company has yet to sell a single battery, and insider selling has negatively impacted investor confidence. In late December 2024, Chief Development Officer Mohit Singh sold 180,000 shares worth over $1.1 million, and other insiders sold shares totaling over $2.1 million.
QuantumScape continues to report widening losses, with a net loss of $115 million for Q4 2024 and an ongoing cash burn of approximately $338 million annually. Despite having a cash runway until the second half of 2028, the company’s inability to generate revenue remains a concern for investors.
The consensus price target of $34.37 implies 61% upside.
QS stock is down 20.52% year-to-date.
12. VinFast Auto Ltd (NASDAQ:VFS)
Number of Hedge Fund Holders In Q4 2024: 5
VinFast Auto Ltd (NASDAQ:VFS) is a Vietnamese automotive company that designs and manufactures electric vehicles (EVs), e-scooters, and e-buses.
The stock is down significantly so far in 2025 as VinFast continues to incur substantial losses. For instance, in Q3 2024, the company reported a net loss of $550 million and a gross margin of negative 24%.
The EV market remains highly competitive, with established players like Tesla and emerging competitors offering better margins and scale. VinFast’s aggressive pricing strategy has yet to translate into profitability or significant market share outside Vietnam.
The consensus price target of $8 implies 152.76% upside.
VFS stock is down 20.60% year-to-date.
11. Stoneridge Inc (NYSE:SRI)
Number of Hedge Fund Holders In Q4 2024: 23
Stoneridge Inc (NYSE:SRI) supplies electronic systems and tech for electric vehicle intelligence.
The stock is down significantly so far in 2025 as Stoneridge announced the departures of two key executives, Chief Procurement Officer Salvatore D. Orsini and Vice President of Operations Archie Nimmer III.
Moreover, Q4 and full-year metrics came in worse than expected, with sales at $218.2 million and a net loss of $6.1 million for the quarter. Full-year sales declined to $908.3 million from $975.8 million in 2023.
Adjusted EBITDA for the year was $37.9 million, down from prior periods. Stoneridge also projected a revenue decline for 2025 due to lower OEM volumes.
The consensus price target of $16 implies 239.77% upside.
SRI stock is down 25.20% year-to-date.
10. Winnebago Industries Inc (NYSE:WGO)
Number of Hedge Fund Holders In Q4 2024: 21
Winnebago Industries Inc (NYSE:WGO) makes recreational vehicles (RVs). This includes motorhomes, travel trailers, fifth-wheel products, boats, and specialty vehicles, under brands like Winnebago, Grand Design, Newmar, Barletta, and Chris-Craft.
The stock is down significantly so far in 2025 as it reduced its fiscal 2025 revenue forecast to $2.8 billion to $3.0 billion from the previous range of $2.9 billion to $3.2 billion and adjusted earnings per share guidance to $2.75-$3.75 from $3.10-$4.40.
Moreover, revenue for Q2 FY2025 fell 11.8% year-over-year to $620.2 million. The company reported a net loss of $0.02 per share, compared to a profit of $0.95 per share in the same quarter last year.
Adjusted EBITDA also dropped by 54.2% year-over-year due to declining margins in key segments like Motorhome RVs.
The consensus price target of $58 implies 67.58% upside.
WGO stock is down 27.69% year-to-date.
9. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Holders In Q4 2024: 126
Tesla Inc (NASDAQ:TSLA) is a household name, so there’s little need for an introduction.
The stock is down significantly so far in 2025 due to weak global sales, particularly a 59% decline in Germany and an 11.5% drop in China year-over-year.
Concerns about Elon Musk’s growing involvement with the U.S. Department of Government Efficiency (DOGE) also raised doubts about his focus on Tesla.
UBS downgraded Tesla’s vehicle delivery forecast for 2025 to 1.7 million units, adding to investor anxiety and Elon Musk’s close ties with President Donald Trump and his controversial political activities alienated a significant portion of Tesla’s customer base, particularly Democrats who previously supported the brand.
Tesla reported its first annual sales decline in 2024, with a 1% drop year-over-year. In the first quarter of 2025, vehicle deliveries are expected to hit a two-year low.
The consensus price target of $317.75 implies 23.87% upside.
TSLA stock is down 37.05% year-to-date.
8. ON Semiconductor Corp (NASDAQ:ON)
Number of Hedge Fund Holders In Q4 2024: 52
ON Semiconductor Corp (NASDAQ:ON) makes semiconductors and is a major supplier to the automotive industry.
The stock is down significantly so far in 2025 as it reported disappointing Q4 2024 results with revenue of $1.72 billion (down nearly 15% year-over-year) and adjusted earnings per share (EPS) of $0.95, both missing analyst expectations of $1.76 billion in revenue and $0.97 EPS.
All major segments saw revenue declines: Power Solutions Group (-16%), Analog and Mixed-Signal Group (-18%), and Intelligent Sensing Group (-2%).
On top of that, ON Semiconductor issued weak Q1 2025 guidance with projected revenue between $1.35 billion to $1.45 billion, significantly below market expectations of $1.69 billion. Gross margin guidance was also reduced to 38.9%-40.9%.
The company announced a restructuring plan involving a 9% workforce reduction to cut costs amid declining demand and revenue. This move will incur charges of $50 million to $60 million in 2025.
The consensus price target of $66.5 implies 66.92% upside.
ON stock is down 37.26% year-to-date.
7. Eve Holding Inc (NYSE:EVEX)
Number of Hedge Fund Holders In Q4 2024: 13
Eve Holding Inc (NYSE:EVEX) is an aerospace company specializing in Urban Air Mobility solutions.
The stock is down significantly so far in 2025 as Eve Holding announced delays in its eVTOL test flight program and Type Certification process. The company now expects to initiate flight tests by mid-2025. In turn, it pushed back timelines for revenue generation.
The company also projected a cash burn of $200 million to $250 million for 2025, significantly higher than the $141 million burned in 2024.
Plus, Eve reported a drop in its order book from approximately 2,900 units to 2,800 units by the end of Q4 2024. The company reported a net loss of $40.7 million for Q4 2024 and $138.2 million for the full year.
The consensus price target of $6 implies 79.1% upside.
EVEX stock is down 38.97% year-to-date.
6. Hyliion Holdings Corp (NYSE:HYLN)
Number of Hedge Fund Holders In Q4 2024: 13
Hyliion Holdings Corp (NYSE:HYLN) is a power generation company, and it was previously a company that made powertrains.
The stock is down significantly so far in 2025 as Hyliion reported a fourth-quarter net loss of $14.4 million, an improvement from the prior year but still significant. Full-year 2024 losses totaled $52 million.
The company projected 2025 revenue of only $10-15 million, with expected cash expenditures of $60 million for KARNO generator development and commercialization.
The consensus price target of $2 implies 40.35% upside.
HYLN stock is down 46.17% year-to-date.
5. Indie Semiconductor Inc (NASDAQ:INDI)
Number of Hedge Fund Holders In Q4 2024: 22
Indie Semiconductor Inc (NASDAQ:INDI) specializes in designing and manufacturing semiconductors and software solutions for automotive applications, including advanced driver-assistance systems (ADAS), automotive electrification, and connectivity.
The stock is down significantly so far as Indie Semiconductor reported Q4 2024 revenue of $58 million, a 17% year-over-year decline, although it grew 7.5% sequentially. The company posted a non-GAAP loss per share of $0.07, which missed analysts’ expectations by $0.08.
The company provided weak guidance for Q1 2025. It projects revenue between $52.5 million and $57.5 million (midpoint $55 million), below the consensus estimate of $61.3 million.
The consensus price target of $7.5 implies 272.21% upside.
INDI stock is down 50.37% year-to-date.
4. Lotus Technology Inc (NASDAQ:LOT)
Number of Hedge Fund Holders In Q4 2024: 11
Lotus Technology Inc (NASDAQ:LOT) sells battery electric lifestyle vehicles globally under the Lotus brand.
The stock is down significantly so far in 2025 as it disclosed increasing liabilities, including significant put option liabilities and convertible. This was compounded by high operating expenses and limited cash reserves relative to its debt obligations.
Moreover, it reported disappointing financial results for Q4 2024. The company posted a net loss of $667 million for the first nine months of 2024, a negative profit margin of 88.89%.
The consensus price target of $7 implies 329.45% upside.
LOT stock is down 54.71% year-to-date.
3. LiveWire Group Inc (NYSE:LVWR)
Number of Hedge Fund Holders In Q4 2024: 11
LiveWire Group Inc (NYSE:LVWR) makes electric motorcycles and balance bikes.
The stock is down significantly so far in 2025 as LiveWire reported a consolidated net loss of $93.9 million for 2024. This was an improvement from $109.6 million in 2023 but is still substantial.
Revenue fell by 30% to $26.6 million and the Electric Motorcycles segment declined by 27%. The STACYC segment declined 31% and unit sales of motorcycles declined by 54% in Q4 year-over-year.
Cash reserves tumbled to $64.4 million from $167.9 million at the end of 2023 and it provided guidance which was weak, with electric motorcycle sales of only 1,000 to 1,500 units for 2025. It expects an operating loss between $70 million and $80 million.
The consensus price target of $7.25 implies 231.81% upside.
LVWR stock is down 54.78% year-to-date.
2. KULR Technology Group Inc (NYSEAMERICAN:KULR)
Number of Hedge Fund Holders In Q4 2024: 6
KULR Technology Group Inc (NYSEAMERICAN:KULR) makes thermal management technologies for batteries, electronics, and other components.
The stock is down significantly so far in 2025 as KULR filed for an automatic mixed securities shelf. This signaled the company was raising more capital and diluting shares.
Later, the stock fell more after the unexpected resignation of the CEO and cutbacks in key development projects.
Plus, the company decided to allocate up to 90% of its surplus cash to Bitcoin investments. It also posted a net loss of $17.5 million in 2024.
The consensus price target of $5 implies 283.14% upside.
KULR stock is down 63.41% year-to-date.
1. REE Automotive Ltd (NASDAQ:REE)
Number of Hedge Fund Holders In Q4 2024: 5
REE Automotive Ltd (NASDAQ:REE) is a technology company that sells modular electric vehicle platforms and software-defined vehicles.
The stock is down significantly so far in 2025 as REE Automotive announced a registered direct offering of 6.4 million shares at $4.25 per share. It raised $27 million in gross proceeds.
Plus, despite plans to begin deliveries of its flagship P7-C electric truck in the first half of 2025 and ramp up production in the second half, there is market skepticism about REE’s ability to execute these goals effectively.
The consensus price target of $14.5 implies 427.27% upside.
REE stock is down 69.25% year-to-date.
While we acknowledge the potential of REE as an investment, 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 REE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.