Electric vehicle (EV) sales continue to grow but at a slower pace than many had previously expected. In 2024, sales of all-electric and hybrid vehicles in the US reached 20% of new car and truck sales for the first time. While this is a massive achievement, it comes at a slower rate than expected and traditional gas and diesel-powered vehicles still dominate the market. Gas or diesel internal combustion engines fell below 80% for the first time in modern automotive history. These models accounted for 79.8% of the sales in 2024.
According to auto data firm Motor Intelligence, 1.3 million all-electric and 1.9 million hybrid vehicles, which include plug-in models, were sold last year. However, there is more uncertainty as to how sales of all-electric and plug-in hybrid electric vehicles will be influenced by the potential actions of President Trump as well as the ongoing trade war.
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Globally, China remains the largest market for EVs. According to the China Passenger Car Association, sales of new energy vehicles, which include battery-only and hybrid-powered cars, jumped 42% to reach nearly 11 million units in 2024. The rapid growth of new energy vehicles in China in recent years has been supported by a mix of subsidies and consumer purchase incentives.
However, CNBC reported that China’s EV market could experience a sharp slowdown in 2025, with HSBC analysts predicting slower growth of only 20% in 2025 because of industry consolidation and reduced margins for struggling companies. Yuqian Ding, head of China autos research at HSBC, said in a report that the current situation is “unsustainable”. According to Ding, strong sales have allowed weaker firms to hang on despite falling margins. HSBC analysts expect consolidation within the industry to now accelerate rapidly, which could force a lot of small firms out.
With this background in mind, let’s take a look at the 10 best EV stocks to buy under $50.
A fleet of electric vehicles charging at a station in Beijing.
Our Methodology
To compile our list of the 10 best EV stocks to buy under $50, 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. We narrowed down our selection to stocks with a share price of under $50 as of March 28, 2025. Next, we focused on the top 10 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 10 best EV stocks to buy under $50 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).
10 Best EV Stocks to Buy Under $50
10. Plug Power Inc. (NASDAQ:PLUG)
Share Price: $1.34
Number of Hedge Fund Holders: 24
Plug Power Inc. (NASDAQ:PLUG) is a global leader in hydrogen fuel-supply solutions and in hydrogen applications for material handling, power generation, and e-mobility. The company develops hydrogen fuel cell systems that are designed to replace conventional batteries in EVs and electrical equipment. Hydrogen fuel cell systems offer significant benefits like improved charging efficiency and extended range. Plug Power Inc. (NASDAQ:PLUG) ranks among the best EV stocks to buy under $50.
On March 5, TD Cowen analyst Jeff Osborne maintained a “Buy” rating on Plug Power Inc. (NASDAQ:PLUG) with a price target of $4.00. Osborne highlighted the company’s strategic initiative “Project Quantum Leap”, which aims to cut annual costs by $150 to $200 million as the company plans to improve its operations and financial performance. Osborne also pointed out that Plug Power Inc. (NASDAQ:PLUG) is expected to increase production at its current facilities. The company will also bring new plants online. A plant in Louisiana is expected to begin operations in the second quarter of 2025 and another in Texas by the end of 2026. However, the analyst emphasized that Plug Power Inc. (NASDAQ:PLUG) must create enough demand to match its growing supply and production capabilities. Osborne expressed confidence in the company’s targets and its ability to execute its business plan successfully in the coming years.
9. Blue Bird Corporation (NASDAQ:BLBD)
Share Price: $32.93
Number of Hedge Fund Holders: 25
Blue Bird Corporation (NASDAQ:BLBD) is a leading American school bus manufacturing company that also specializes in manufacturing a range of electric and low-emission buses. In Q1 of fiscal 2025, which ended on December 28, 2024, the company delivered more than 130 electric-powered buses and also reported significant growth in EV orders thanks to programs like the EPA’s Clean School Bus Program and state/local initiatives. As of February 2025, Blue Bird Corporation (NASDAQ:BLBD) reported approximately 1,000 EV buses either sold or in its firm order backlog. This supports the company’s EV sales targets for 2025.
BLBD is one of the best EV stocks to buy under $50. The company is focused on growing its leadership in electric and propane-powered vehicles. At Work Truck Week 2025, Blue Bird Corporation (NASDAQ:BLBD) displayed its new and innovative zero- and ultra-low emission commercial vehicle solutions. The company presented a propane-powered Class 5-6 stripped chassis and an advanced electric step van at the show’s Ride & Drive. The company plans to launch its electric-powered stripped chassis in the first quarter of 2026, which will be followed by the propane version in the second quarter of 2026.
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