In this article, we will discuss: 12 Best EV Stocks To Buy in 2025.
Electric cars, often known as electric vehicles or EVs, are automobiles powered by electricity instead of gas. Electric car stocks are comprised of companies that primarily manufacture electric vehicles. Firms that make components for electric vehicles, such as batteries or autonomous driving systems, are also regarded as part of the electric vehicle industry.
President Trump’s 25% tariffs on imported automobiles have officially come into force, affecting roughly half of the US auto industry. According to S&P Global Mobility estimates, 46% of the 16 million automobiles sold in the United States in 2024 were not produced domestically. The policy also includes tariffs on specified vehicle parts, including engines and transmissions, which will go into effect on May 3.
Wall Street analysts and investors have been skeptical of the tariffs, which some say might reduce business earnings and plunge the automobile industry into a recession.
Bernstein analyst Daniel Roeska stated in a recent note to investors:
“A 25% on automotive imports lasting beyond four to six weeks would likely have a chilling effect on the entire sector as [automakers] need to grapple with significant impact to the bottom line.”
Wall Street analysts believe that automakers’ and suppliers’ equities will remain volatile in the near term. The most vulnerable businesses are those with high import ratios. Several companies saw more than 60% of their U.S. sales in 2024 come from vehicles manufactured outside of the United States. Meanwhile, companies with all-U.S. final assembly lines and minimal dependence on imports, especially in the EV industry, are projected to be more secure.
In the first quarter, U.S. auto sales exceeded industry forecasts by a wide margin as buyers rushed to purchase new cars before the tariffs went into effect, which many believe will raise car prices. According to S&P Global Mobility’s tariff analysis, the costs of importing vehicles, auto manufacturing in the US, and consumer vehicle costs will all rise.
Analysts warn that if tariffs are completely implemented, typical new car prices, which are currently around $48,000, might rise by up to $10,000. Lower-margin, entry-level vehicles are more vulnerable to price increases or discontinuation since they are often sourced from low-cost countries and are prone to margin compression under the new tariff regime.
Specifically, China’s car exports are under strain as US tariff hikes impact major overseas markets. Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), stated:
“The abrupt hike in U.S. tariffs will have a disastrous impact on economies such as Southeast Asia, and thus our exports to these markets will be impacted more than expected.”
March exports dipped 8% year on year, following a rise of 11% in February. Joint ventures and luxury brands suffered a 45% decline, exporting only 47,000 units. Exports from Shanghai-based EV facilities fell 82.4% in March to 4,701 units, while first-quarter exports fell 56.9% to 38,147 vehicles. The China Passenger Car Association fears that Southeast Asia, which is significantly touched by new US tariffs, may witness a decline in demand. Export growth was originally projected to slow to 10% in 2025, down from 25% in 2024, but this could potentially fall. Domestic sales surged by 14.4% to 1.97 million units in March and 6.1% to 5.18 million in the first quarter.
With that said, here are the 12 Best EV Stocks To Buy in 2025.
Methodology
We sifted through EV ETFs and online rankings to form an initial list of the 20 Best EV stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for 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).
12. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Number of Hedge Fund Holders: 10
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is among the Best EV Stocks. It is an electric vehicle manufacturer that develops products intended to excite consumers and drive change. The firm sets market-leading standards for design, technology, and sustainability. It was founded as a premium electric vehicle brand by Volvo Cars and Geely Holdings. The company has created two electric performance vehicles: Polestar 1 and Polestar 2. Geographically, the majority of its revenue comes from the United States.
Despite recent challenges, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is well-positioned for development due to its strong EV lineup, which includes the Polestar 2, 3, and 4. The company’s aggressive expansion plans for 2025 include introducing the Polestar 5 grand tourer and expanding into France, with a target of nearly tripling deliveries to 155,000 vehicles. Analysts predict revenue increases as Polestar Automotive Holding UK PLC (NASDAQ:PSNY) boosts operations and improves spending. The company’s EBITDA, which has been negative since its public debut, is predicted to be positive by 2025. The company’s international production strategy, which includes plans to produce the Polestar 3 in the United States as well as higher production in Europe and South Korea, allows it to avoid costly tariffs, however, labor costs may rise.
The $501 million in cash and $800 million in bank facilities provide a strong financial buffer for overcoming challenges, whereas the debt load, along with potential dilution from secondary offerings, is manageable in the long run.
11. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 14
ChargePoint Holdings, Inc. (NYSE:CHPT) is the largest electric vehicle charging company in the United States, with the most charging ports and locations of any network. CHPT has 70,000 plugs at around 39,000 locations. The firm operates more than four out of every ten charging points across the country. It is among the best EV stocks on our list.
The company is small and currently unprofitable, so there exists a certain risk, but investors who are not interested in putting money into companies headquartered in Beijing or Shanghai may find this closer-to-home option more appealing. Furthermore, ChargePoint Holdings, Inc. (NYSE:CHPT)’s expansion of charging infrastructure in the United States creates numerous opportunities.
The business recently introduced an innovative AC Level 2 charging architecture that allows for bidirectional charging and rates up to twice as fast. The platform is compatible with residential, business, and fleet applications in North America and Europe. ChargePoint Holdings, Inc. (NYSE:CHPT)’s initial models will be available in Europe this summer, followed by North America in late 2025, where it now holds a 61% share of the US AC Level 2 market.
10. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 17
XPeng Inc. (NYSE:XPEV) is China’s leading electric vehicle manufacturer, focusing on the midrange to high-end category and tech-savvy clientele. It is mass-producing eight pure electric models: the G3/G3i compact sport utility vehicle, or SUV; the P7 midsize sedan; the P5 compact sedan; the G9 midsize SUV; the G6 compact SUV; the X9 multipurpose vehicle; and the Mona 03 compact sedan. Retail costs for the present model portfolio range from CNY 120,000 to CNY 420,000 for popular trims with a driving range of around 460-700 km. The firm intends to launch at least ten new vehicles for its new model pipeline in 2025-27. The stock grew by more than 71.5% YTD, making it among the Best EV Stocks.
XPeng Inc. (NYSE:XPEV) is on track to become the world’s first mass producer of flying automobiles by 2026, according to its innovative “land aircraft carrier” idea, which combines a six-wheeled van and a detachable passenger drone. This innovation allows consumers to drive to a take-off spot, detach the drone, and continue their journey airborne, reducing travel time and increasing accessibility. The company exhibited its flying automobile at the 2024 Zhuhai Airshow, earning over 3,000 intended orders. By early 2026, a new facility will produce 10,000 units a year, putting the firm at the forefront of this revolutionary industry.
Barclays increased its price objective for XPeng Inc. (NYSE:XPEV) to $20 from $7. According to the analyst, the company’s vehicle deliveries in Q4 and so far in Q1 are more than three times what was seen in the first half of 2024. According to the business, its model update and new product launch momentum will be solid in 2025. However, Barclays believes the stock’s price is “stretched” following its recent surge.
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