In this article, we will discuss: 10 Best EV Stocks to Buy Heading into 2026.
Bloomberg’s story on December 16, 2025, stated that after several years of fast expansion, the rise of electric vehicles has slowed globally, impacting employment, industry planning, and climate targets. Adoption of EVs is essential to achieving net-zero emissions since road transportation contributes about one-fifth of the world’s carbon dioxide emissions. Following years of industrial retooling and subsidies, momentum waned as government incentives were reduced, EV costs remained high, charging infrastructure lagged, and policy support faded. In Europe, lawmakers are backing away from a strict 2035 ban on new combustion-engine vehicles, recognizing that the transition to zero-emission transportation would take longer than previously anticipated.
According to BloombergNEF, global sales of EVs and plug-in hybrids jumped by 26% in 2024 compared to 34% the year before. Almost two-thirds of the 17.6 million EVs sold globally came from China. EV sales in the United States soared by 12% in the first three quarters of 2025, notwithstanding the withdrawal of subsidies. Sales of EVs and hybrids in Europe shot up by 26% between January and October 2025 after being flat the previous year, but the rate is still below what is needed to fulfill emissions standards. In 2024, all-electric vehicles were approximately 30% more expensive than similar gasoline vehicles in Europe and 27% more costly in the United States.
As per Bloomberg, the slowdown has compelled the industry to reevaluate expectations. Legacy automakers have reduced their anticipated 2030 EV sales by more than 5 million units to 21.7 million. Meanwhile, lawmakers delayed penalties for environmental violations and permitted the ongoing sale of combustion-engine and hybrid vehicles. A delayed transition risks postponing transport decarbonization and urban air pollution reductions. Employment is also impacted because EV production uses fewer workers than traditional vehicle manufacturing.
With that said, here are the 10 Best EV Stocks to Buy Heading into 2026.
Photo by Obi Onyeador on Unsplash
Methodology:
We sifted through the ETFs and online rankings to form an initial list of the 20 EV stocks. From the resultant dataset, we chose 10 EV stocks with the analyst upside potential of over 20%, as of December 17. We have also mentioned the number of hedge fund holders for each stock using Insider Monkey’s database of hedge funds as of Q3 2025. The stocks are ranked in ascending order of their upside potential.
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. Blue Bird Corporation (NASDAQ:BLBD)
Analysts’ Upside Potential as of December 17: 24.83%
Number of Hedge Fund Holders: 31
Blue Bird Corporation (NASDAQ:BLBD) is among the Best EV Stocks.
On November 25, 2025, TheFly reported that DA Davidson maintained a buy rating on Blue Bird Corporation (NASDAQ:BLBD) shares and boosted the price goal to $76 from $70. The analyst informs investors in a research note that the company’s Q1 outlook was far ahead of expectations and that revenues and EBITDA exceeded the firm’s predictions and consensus. The firm’s FY26 forecast was maintained as a whole, although it clearly shows the management’s signature conservatism, as the firm stated.
In the last quarter, Blue Bird Corporation (NASDAQ:BLBD) reported net revenue of $409 million, an improvement of 17% year-on-year, with bus net revenue of $384 million and average bus revenue per unit of $153,000. Sales of EVs climbed by 149 units from the previous year to 233 units in Q4. Adjusted EBITDA for the fourth quarter was $68 million, up 64% over the previous year. The quarter’s gross margin was 21%, or 4.1 percentage points better than the previous year, as a result of consistent operational success and pricing outpacing inflationary costs, including tariff effects.
The management reiterated its fiscal 2026 forecast, keeping revenue at $1.5 billion at the halfway point and unit volume at 9,500. Furthermore, with a stated range of $210 million to $230 million and margins between 14.5% and 15%, the business maintained its adjusted EBITDA estimate at $220 million, or a 14.7% margin. The guidance was issued following the record fiscal 2025 performance.
Blue Bird Corporation (NASDAQ:BLBD) is an American firm that makes buses. It is a school bus design and manufacturing company that operates independently.
9. Li Auto Inc. (NASDAQ:LI)
Analysts’ Upside Potential as of December 17: 29.47%
Number of Hedge Fund Holders: 14
Li Auto Inc. (NASDAQ:LI) is among the Best EV Stocks.
As reported by TheFly, Goldman Sachs lowered its price target for Li Auto Inc. (NASDAQ:LI)from $30.90 to $27 on December 1 and still maintained a Buy rating.
As noted by Goldman Sachs analyst Tina Hou, the company’s third-quarter results fell short of expectations because of higher operating costs and one-time recall-related expenses. Goldman Sachs predicts that the third quarter will be its lowest point in profitability and margins.
Li Auto Inc. (NASDAQ:LI)’s last quarter revenue dropped 36% from the previous year. The Chinese electric vehicle manufacturer lost RMB625 million as a result of a 39.0% decline in total deliveries to 93,211 units during the quarter.
On December 1, Li Auto Inc. (NASDAQ:LI) declared that it had delivered 33,181 vehicles in November. The business had made 1,495,969 deliveries overall as of November 30. The business aims to release OTA 8.1 in early December 2025 and anticipates that the monthly production capacity for Li i6 will exceed 20,000 units by early next year.
Li Auto Inc. (NASDAQ:LI) is a leading Chinese NEV company that creates, produces, and markets high-end smart NEVs.
