In this article, we will be looking at 10 best EV stocks to buy according to hedge funds.
Electric vehicles (EVs) continue to have a firm standing in Wall Street’s radar despite the signs of cooling sales growth. According to Reuters, global sales for EVs saw a 21% year-on-year increase in July. The growth rate was the slowest since January and down from 25% in June. Even the world’s largest car market, China, saw growth ease to 12% as subsidy pauses took effect. Europe and North America, on the other hand, gained 48% and 10%, respectively. Amidst these slowdowns and shifts, the trajectory for EV adoption is expected to remain upward in 2025.
Meanwhile, the prevailing economic conditions continue to influence the investment decisions on high-growth sectors like EVs. CNBC reported a 2.9% core inflation in the U.S. in July, the highest since February. However, the 0.5% increase in consumer spending and 0.4% growth in incomes suggest that households are absorbing higher prices. As the Fed shows signs of a potential rate cut, liquidity might positively influence investor interest in growth assets.
In this regard, by considering the hedge fund’s interest as well, we have put together a list of 10 best EV stocks to buy now. Stay with us and see if the top 5 meet your portfolio expectations.
Our Methodology
When putting together our list of 10 best EV stocks to buy according to hedge funds, we followed a few criteria. Primarily, we have included only those stocks established under the EV industry with hedge funds invested in them. For ranking the stocks, we have used the number of hedge funds as of the second quarter of 2025. We gathered this data from the Insider Monkey database. All the data used in the article was taken from financial databases and analyst reports, with all information updated as of September 5, 2025.
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).
10. ChargePoint Holdings, Inc. (NYSE:CHPT)
No. of Hedge Funds: 19
ChargePoint Holdings, Inc. (NYSE:CHPT) secures a spot in our list of 10 best EV stocks to buy according to hedge funds. Amid the mixed Q2 results and analysts’ opinions, the company progresses with collaborations.
ChargePoint Holdings, Inc. (NYSE:CHPT) reached the top end of its guidance range and beat the analyst estimates by 3.3% with a revenue of $98.59 million in the second quarter of 2025. Though this gains a positive response, the figure still stands at a 9.2% low compared to the same quarter of the previous year. Additionally, the 3% year-over-year increase in Passenger EV sales growth in the U.S. is regarded as slow, giving rise to concerns about vehicles’ future adoption. Ultimately, it resulted in mixed opinions among analysts, with some analysts reducing their price target on the stock. RBS Capital, for instance, lowered the price target from $20 to $10 while keeping a Sector Perform rating on the shares.
Meanwhile, the collaboration with General Motors to deploy up to 500 ultra-fast charging ports at public locations across the U.S. by the end of 2025 and the partnership with Eaton to create joint EV charging and energy management solutions for North America and Europe raise the expectations for the company’s growth.
As per the Insider Monkey database, 19 hedge funds hold an interest in stock ownership, building confidence in the company.
ChargePoint Holdings, Inc. (NYSE:CHPT). headquartered in California and founded in 2007, is a leader in the EV charging industry. It operates one of the world’s largest and most comprehensive EV charging networks.
9. NIO Inc. (NYSE:NIO)
No. of Hedge Funds: 19
NIO Inc. (NYSE:NIO) holds a place in our list of 10 best EV stocks to buy according to hedge funds. The company’s second-quarter earnings call shows strong positive figures and raises expectations for its future performance in the EV sector.
NIO Inc. (NYSE:NIO) achieved 72,056 smart EV deliveries in Q2 2025, reaching a 25.6% year-over-year increase. In addition to this, in its Q2 earnings report released on September 2, 2025, the company also highlighted anticipating a growth range of 40.7% to 47.1% year-over-year in EV deliveries, thus projecting a positive outlook for the remaining 2025.
Instilling user confidence, the ONVO L90 and All-New ES8 have been massive contributors to market demand, leading to a boost in NIO Inc. (NYSE:NIO)’s overall sales. The company has also been successful in integrating its proprietary smart driving chip and full domain vehicle operating system into production models. The new models are hence expected to increase product competitiveness and strengthen the company’s foothold in the market.
With 19 hedge funds holding ownership stakes in the company, NIO Inc. (NYSE:NIO) benefits from moderate institutional interest.
Founded in 2014, the Shanghai-headquartered company, NIO Inc. (NYSE:NIO), specializes in the design, development, and manufacturing of premium smart electric vehicles. The company is known for its unique battery-swapping technology.
8. XPeng Inc. (NYSE:XPEV)
No. of Hedge Funds: 21
XPeng Inc. (NYSE:XPEV) finds its way into our list of 10 best EV stocks to buy according to hedge funds. The company experiences significant growth in EV deliveries, while the confidence in the stock is boosted by the CEO’s bold purchase.
XPeng Inc. (NYSE:XPEV)’s deliveries reached 103,181 units in the second quarter of 2025. The record-breaking growth marked a 242% increase compared to the previous year’s second quarter. Consequently, the total revenue also witnessed a notable growth, RMB18.27 billion, a 125.3% increase year-over-year. Furthermore, with the launch of the G7 model that incorporated the company’s very own AI technology, XPeng Inc. (NYSE:XPEV) gains the position as a top competitor in its category.
In August, XPeng Inc. (NYSE:XPEV) made an announcement that is expanding its technical collaboration with the Volkswagen Group beyond electric vehicles to include Volkswagen’s Internal Combustion Engine (ICE) and Plug-in Hybrid Electric Vehicle (PHEV) platforms in China. Following the announcement, the company’s CEO, Xiaopeng He, purchased 3.1 million Class A ordinary shares, thereby boosting the confidence of the investors regarding the company’s growth prospects.
With 21 hedge funds holding ownership stakes in XPeng Inc. (NYSE:XPEV), the stock gains moderate institutional support.
Founded in 2014, the Guangzhou-based smart EV company, XPeng Inc. (NYSE:XPEV), is a leader in in-house R&D. The company’s focus is on building advanced driver-assistance systems and intelligent connectivity.
7. Li Auto Inc. (NASDAQ:LI)
No. of Hedge Funds: 23
Li Auto Inc. (NASDAQ:LI) gains an entry into the list of 10 best EV stocks to buy according to hedge funds. Following a revision of the second quarter delivery outlook, the stock’s rating gains mixed opinions among analysts.
Pointing to a temporary sales system upgrade, Li Auto Inc. (NASDAQ:LI) revised its Q2 2025 delivery outlook from a range of 123,000-128,000 to approximately 108,000 vehicles on June 27, 2025. The news initially caused market apprehension, but subsequent results proved the company’s resilience. Later, when reporting the company’s second-quarter performance, the company announced that the deliveries came in at 111,074 vehicles, exceeding its revised guidance, signaling strong demand for the products.
Analyst opinion on the stock, however, remains mixed after the revision. Based on the CNN’s analyst report, 42 analysts have given a consensus Buy rating on the stock, with a 1-year median price target of $27.98, an 18.32% upside from the current price. Meanwhile, some prominent analysts like J.P. Morgan firmly maintain a Hold rating on the stock.
Insider Monkey noted 23 hedge funds invested in the stock as of the second quarter of 2025, representing a moderate level of institutional interest in Li Auto Inc. (NASDAQ:LI).
Li Auto Inc. (NASDAQ:LI) is a pioneer in the commercialization of extended-range electric vehicles (EREVs), a technology that combines electric propulsion with a gasoline-powered range extender to alleviate range anxiety. Founded in 2015, the company operates from its headquarters in Beijing.
6. Lucid Group, Inc. (NASDAQ:LCID)
No. of Hedge Funds: 27
Lucid Group, Inc. (NASDAQ:LCID) finds a spot among the list of 10 best EV stocks to buy according to hedge funds. The company’s price target surges following a reverse split and a $300 million investment from Uber.
Lucid Group, Inc. (NASDAQ:LCID) reported its Q2 earnings results on August 5, 2025, where it highlighted a 38% year-over-year increase in vehicle deliveries. The achievement also marks the sixth consecutive quarter of record deliveries. During the quarter, Lucid Group, Inc. (NASDAQ:LCID) also announced the closing of a $300 million investment in the company by Uber Technologies, Inc. It is expected to launch its first Robotaxi later next year in a major U.S. city.
Recently, following the completion of a 1-for-10 reverse stock split and consolidating 3.07 billion outstanding shares into 307.3 million, the company saw its price target raised by Cantor Fitzgerald from $3 to $20, while the rating remains at Neutral.
The company also gains the support of the institutional investors, as the Insider Monkey database records 27 hedge funds holding stakes in Lucid Group, Inc. (NASDAQ:LCID).
Incorporated in 2007, Lucid Group, Inc. (NASDAQ:LCID) is a California-headquartered company focused on the development of luxury electric vehicles. The company is particularly known for the exceptional range and high performance of its flagship sedan, the Lucid Air.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
No. of Hedge Funds: 38
Rivian Automotive, Inc. (NASDAQ:RIVN) secures a rank in our list of 10 best EV stocks to buy according to hedge funds. The company lays off employees amid a $1 billion equity investment and while awaiting the launch of its R2 SUV.
In the second quarter of 2025, Rivian Automotive, Inc. (NASDAQ:RIVN) achieved notable progress in the development of the R2 vehicle and its autonomy platform. The improvement strengthens the company’s position for future growth. It also announced the completion of a new 1.1 million square foot facility in Illinois, to support the production of R2, signaling strong demand as well as the company’s commitment to scaling manufacturing capacity.
While preparing for the launch of its new R2 SUV, Rivian Automotive, Inc. (NASDAQ:RIVN) announced a layoff of a small number of workers, with the intention of lowering costs. While this may project a negative outlook, the company gains some positivity by acquiring the trust of a major player in the sector with a $1 billion equity investment from Volkswagen Group.
Rivian Automotive, Inc. (NASDAQ:RIVN) also benefits from the institutional interest of 38 hedge funds, which have invested in the company’s stock.
Based in California and founded in 2009, Rivian Automotive, Inc. (NASDAQ:RIVN) stands out for its focus on the premium electric adventure vehicle market. The developer and manufacturer of the R1T electric pickup and R1S electric SUV also has a significant partnership with Amazon for its electric delivery vans.
4. Albemarle Corporation (NYSE:ALB)
No. of Hedge Funds: 41
Albemarle Corporation (NYSE:ALB) holds a spot in our list of 10 best EV stocks to buy according to hedge funds. Analysts are raising the price target on the stock following a strong positive second quarter.
On July 30, 2025, Albemarle Corporation (NYSE:ALB) reported its second-quarter earnings results. Though the company’s revenue of $1.33 billion is down 7% compared to the same quarter the previous year, its EPS has surpassed the analyst estimates by 8.4%. Additionally, the company’s net income of $22.9 million is up from the previous year’s second quarter of $229.9 million loss. The company also announced achieving a 100% run rate of its $400 million cost and productivity improvement target.
Following the results, the stock’s monthly performance as of September 5, 2025, saw an uptick of 19.47%. Relatively, various analysts have raised their price target on the stock as well. Baird, for instance, raised the stock’s price target from $58 to $68 while J.P. Morgan raised it from $60 to $80.
With 41 hedge funds invested in the stock, Albemarle Corporation (NYSE:ALB) benefits from strong institutional interest.
Albemarle Corporation (NYSE:ALB) is a specialty chemicals company founded in 1994. Headquartered in North Carolina, the company is a global leader in providing essential materials for modern technology, particularly lithium and bromine.
3. Ford Motor Company (NYSE:F)
No. of Hedge Funds: 45
Ford Motor Company (NYSE:F) gains an entry into our list of 10 best EV stocks to buy according to hedge funds. The company’s second quarter projects strong growth for its Model e segment.
The company reported its second-quarter earnings results on July 30, 2025, where it recorded $50 billion in revenue for the quarter, signaling the strong reception for its products and services in the market. Ford Motor Company (NYSE:F) also saw a significant margin improvement in its Model e segment. The volume doubled during the quarter while material costs went down. The company’s sales in the U.S. also went up, reaching a 7% growth rate, indicating its strong presence in the market.
In addition to this, the company’s Expedition also experienced significant sales growth, with an increase of 43.9% to 31,298 units sold. The growth represents its best second-quarter performance in 20 years.
Ford Motor Company (NYSE:F) witnesses a strong institutional interest, with 45 hedge funds having ownership stakes in the company.
Ford Motor Company (NYSE:F), founded by Henry Ford in 1903, is an American multinational automaker. The Michigan-based company is a key player in the automotive industry, known for pioneering the moving assembly line for mass production, making vehicles more accessible to the public.
2. General Motors Company (NYSE:GM)
No. of Hedge Funds: 71
General Motors Company (NYSE:GM) holds a place in our list of 10 best EV stocks to buy according to hedge funds. Following a strong second quarter, the company’s top executive sells approximately 40% of her directly owned shares.
General Motors Company (NYSE:GM) witnesses a prosperous first half of 2025, with total revenue reaching $91 billion. Revenue in North America alone stands at $77 billion, creating a new record. With the Chevrolet Equinox gaining nearly 6 points of retail market share year over year, the company progresses in the U.S. as well as the Chinese markets. The company’s EV portfolio is gaining importance, and Chevrolet has acquired the number two position in the EV brand, while Cadillac stands at the number five position.
However, on August 28, 2025, the company’s Chair & CEO, Mary Barra, made a bold move by selling 994,863 shares of General Motors Company (NYSE:GM)’s stock in a transaction valued at approximately $57.9 million. The sales, amounting to about 40% of her directly owned shares, attracted market attention.
In the second quarter, Insider Monkey noted 71 hedge funds with stakes in the company, signalling a strong institutional confidence in General Motors Company (NYSE:GM)’s growth.
General Motors Company (NYSE:GM) is one of the world’s largest automakers. The Detroit-based company was founded in 1908. It has a diverse portfolio of vehicle brands, including Chevrolet, Cadillac, Buick, and GMC. Focus is heavily laid on transitioning to electric vehicles through its Ultium battery platform.
1. Tesla, Inc. (NASDAQ:TSLA)
No. of Hedge Funds: 115
Tesla, Inc. (NASDAQ:TSLA) earns a ranking among our list of 10 best EV stocks to buy according to hedge funds. The company achieves record growth in its second quarter amid tariff challenges.
On July 23, 2025, Tesla, Inc. (NASDAQ:TSLA) reported in its second-quarter results the successful launch of its Robotaxis in Austin. The innovative vehicle provides a ride with no driver in the seat, and its expansion to other regions is awaiting regulatory approvals. Also, the company’s Model Y gained the position as the bestselling car in multiple countries, including Turkey, the Netherlands, Switzerland, and Austria.
The advancements in full self-driving (FSD) technology are progressing. In the second quarter report, the company conveyed that it has plans to increase the parameter count by 10 times, optimizing the software’s capabilities. Additionally, the company is also moving up with its Optimus humanoid robot. It anticipates scale production next year, with the production target set at 1 million units annually within five years.
Insider Monkey database recorded 115 hedge funds invested in Tesla, Inc. (NASDAQ:TSLA), signifying the institutional confidence in the stock.
The U.S. multinational automotive and clean energy company, Tesla, Inc. (NASDAQ:TSLA), was founded in 2003. Headquartered in Texas, the company is a pioneer in mass-producing electric vehicles. Its integrated business model includes solar products and battery energy storage solutions.
While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about this cheapest AI stock.
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