In 2024, electric vehicles (EVs) represented 8.1% of the 16 million vehicles sold in the United States, according to Cox Automotive. While this was a record share, it was still below the 10% that analysts had expected at the beginning of the year. Despite this, some believe that the EV market may be picking up pace.
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Despite the fact that overall EV adoption has been slower than expected, brands like Cadillac are expanding their electric lineup. By the end of 2025, Cadillac plans to offer five EVs. These include the Escalade IQ, Optiq crossover, Lyriq, the upcoming three-row Vistiq, and the luxury Celestiq. Cadillac expects roughly one in three vehicles it sells in the US this year will be all-electric.
Brad Franz, Cadillac’s director of marketing, told CNBC that the company is launching EVs to grow its business and attract new customers to the brand instead of just shifting sales from gas-powered cars. According to Franz, the EV portfolio will offer customers more choices. In 2024, the company sold about 29,000 EVs. For 2025, Cadillac aims for EVs to make up between 30% to 35% of its sales in the US.
However, Cadillac has abandoned its earlier plan to sell only EVs by 2030. Instead, the company said that customer demand will determine the elimination of gas-powered vehicles.
This approach reflects a broader trend. A number of automakers have turned their back on plans to exclusively sell EVs in the near future as customer adoption has not been as fast as expected.
With this background in mind, let’s take a look at the 12 small-cap EV stocks to buy now.
A fleet of electric vehicles in a cityscape, representing the companies success in urban transportation.
Our Methodology
To compile our list of the 12 small-cap EV stocks to buy now, we reviewed our own rankings and consulted various online resources to compile a list of the best small-cap EV stocks. Please note that we defined small-cap stocks as those with a market capitalization between $500 million and $10 billion. From an initial pool of more than 20 small-cap EV stocks that met our criteria, we focused on the top 12 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. The 12 small-cap EV stocks to buy now were then 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).
12 Small Cap EV Stocks to Buy Now
12. Lotus Technology Inc. (NASDAQ:LOT)
Market Capitalization: $1.25 Billion
Number of Hedge Fund Holders: 11
Lotus Technology Inc. (NASDAQ:LOT) designs, develops, and sells luxury battery electric vehicles under the iconic British brand “Lotus.” The company has operations across the UK, the EU, and China. Lotus Technology Inc. (NASDAQ:LOT) ranks among the best small-cap EV stocks to buy now.
In the full year of 2024, the company delivered a total of 12,134 units, representing an increase of 74% year-over-year. Lotus Technology Inc. (NASDAQ:LOT) reported total revenue reached $924 million, up 36%. Additionally, the company successfully managed to reduce operating expenses for five consecutive quarters through the execution of efficiency enhancement initiatives. In 2024, the European market accounted for nearly 40% of deliveries, driven by the rollout of Eletre and Emeya starting deliveries in mid-2024. China was the second largest market with 25% of total deliveries while North America was the third largest market with 21% of deliveries. Emira, the sports model produced in the UK, started customer deliveries in the US. Lotus Technology Inc. (NASDAQ:LOT) is strategically expanding globally and in 2024, it made new market entries in over 10 countries in the Gulf Cooperation Council (GCC), Asia, and Oceania. The company’s business is supported by more than 200 stores around the world.
11. NIO Inc. (NYSE:NIO)
Market Capitalization: $8.65 Billion
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO) is a leading company in the global electric vehicle market based in Shanghai, China. The company designs, develops, manufactures, and sells smart electric vehicles. It offers premium smart EVs under the NIO brand, family-oriented smart EVs through the ONVO brand, and small smart high-end electric cars with the FIREFLY brand. NIO Inc. (NYSE:NIO) is one of the best EV stocks to buy now.
The company officially launched its small smart high-end electric car, firefly, on April 19, 2025, and started deliveries in China in late April 2025. The company has plans to reach global markets soon. Overall, in April 2025, NIO Inc. (NYSE:NIO) delivered 23,900 vehicles in total, an increase of 53% year-over-year.
On April 28, Citi maintained its “Buy” rating on NIO Inc. (NYSE:NIO) with a price target of $8.10. Following the Shanghai Auto Show, the firm’s analyst expects that the company will launch new models sooner than the market anticipates. The analyst expects these new models will benefit from lower Bill of Materials costs and cost-saving synergies. The analyst also noted an uptick in orders and Citi’s analysis indicated that NIO Inc. (NYSE:NIO) could see deliveries reach 63,000 units in Q2, an increase of 50% year-over-year. Further growth is also expected, with projections of 100,000 to 120,000 units for Q3 and 120,000 to 150,000 units for Q4. Citi’s positive outlook is based on three main factors: the launch of new models, new Advanced Driver-Assistance Systems (ADAS) and chips, and improved cost savings.
10. Enovix Corporation (NASDAQ:ENVX)
Market Capitalization: $1.19 Billion
Number of Hedge Fund Holders: 21
Enovix Corporation (NASDAQ:ENVX) is an American technology company that specializes in designing and manufacturing lithium-ion batteries with advanced silicon anodes. These batteries can be used in a wide range of applications, including wearables, smartphones, laptops, industrial devices, and electric vehicles. Enovix Corporation (NASDAQ:ENVX) ranks among the best EV stocks to buy according to hedge funds.
The company is focused on transforming the battery industry through its innovative cell architecture that can enhance battery performance for electric vehicles. According to Enovix Corporation (NASDAQ:ENVX), its unique cell architecture can create unique advantages for global automotive original equipment manufacturers (OEMs) by providing increased energy density, better thermal conductivity, high cycle life, and lower cost at both the cell and pack level thanks to simplified system design and low-cost manufacturing processes. Previously, in July 2024, the company signed a non-binding Memorandum of Understanding (MOU) with a high-performance, global automotive OEM that will focus on scaling the company’s unique battery cell design for the EV market. This was the company’s second agreement with an automotive OEM and it is focused on cell design and performance validation at the cell, pack, and vehicle levels to improve overall performance and customer experience.
During Q1 2025, Enovix Corporation (NASDAQ:ENVX) worked with its automotive OEM partners and reported that it significantly improved the likelihood of expanding its commercial agreement with one of the two partners by the end of 2025. On April 15, Benchmark analyst Mickey Legg reduced the price target for Enovix Corporation (NASDAQ:ENVX) from $25 to $15 but maintained a “Buy” rating. Legg believes that the company, which is currently in its product sampling phase for 2025, will start launching products in 2026. The analyst believes that while initial order might be modest, there is potential for significant growth as the company starts securing larger deals.
9. Sigma Lithium Corporation (NASDAQ:SGML)
Market Capitalization: $783.73 Million
Number of Hedge Fund Holders: 21
Sigma Lithium Corporation (NASDAQ:SGML) is a leading Canadian company that focuses on producing lithium for electric vehicle batteries. The company produces Quintuple Zero Green Lithium at its Grota do Cirilo operation in Brazil. This net-zero carbon lithium is made with zero toxic chemicals, no potable water, and no tailings dams. Sigma Lithium Corporation (NASDAQ:SGML) is one of the best EV stocks to invest in.
The company is actively working to increase its production capacity. In Q4 2024, Sigma Lithium Corporation (NASDAQ:SGML) achieved record quarterly production. As a result of the improved efficiencies and the completion of new ultrafines circuit at its Greentech Industrial Lithium Plant, the company increased its production by 28% and produced more than 77,000 tonnes of Quintuple Zero Lithium Concentrate in Q4 2024. For the full year 2024, Sigma Lithium Corporation (NASDAQ:SGML) reported that total production reached over 240,000 tonnes. The company also advanced construction of its Plant 2 in Q4 2024 and completed procurement of long-lead items and foundational work. Sigma Lithium Corporation (NASDAQ:SGML) expects plant commissioning to start in Q4 2025. For the full year 2025, the company aims to produce at least 270,000 tonnes of its Quintuple Zero Lithium Concentrate.
8. QuantumScape Corporation (NYSE:QS)
Market Capitalization: $2.16 Billion
Number of Hedge Fund Holders: 22
QuantumScape Corporation (NYSE:QS) is an American company that specializes in solid-state lithium-metal battery technology, which is designed to enable greater energy density, faster charging, and enhanced safety. The company develops solid-state rechargeable lithium metal batteries for electric cars. QuantumScape Corporation (NYSE:QS) ranks among the best EV stocks to buy now.
In December 2024, QuantumScape Corporation (NYSE:QS) announced that it had successfully developed, delivered, installed, and released its next-generation heat treatment equipment for its separator production process, Cobra. This achievement is a major step toward making solid-state batteries commercially available for EVs and it put the company on track to deliver higher-volume samples of its first planned commercial product, QSE-5. This news comes after the company entered into an agreement with Volkswagen Group’s battery company PowerCo in July 2024 to industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology. Under the non-exclusive license, QuantumScape Corporation (NYSE:QS) will license its technology to PowerCo, which will be able to manufacture up to 40 gigawatt-hours (GWh) of battery cells annually. PowerCo will have an option to expand up to 80 GWh annually, which is enough to outfit about 1 million electric vehicles each year.
QuantumScape Corporation (NYSE:QS) aims to license its technology platform across the EV and energy storage industries and this partnership will accelerate the large-scale production of these next-generation batteries to meet the growing demand for better electric vehicle batteries. The company reported that it is looking to expand its portfolio of potential licensing partnerships in 2025 and is in active discussions with additional automotive OEM customers.
7. Lucid Group, Inc. (NASDAQ:LCID)
Market Capitalization: $6.86 Billion
Number of Hedge Fund Holders: 24
Lucid Group, Inc. (NASDAQ:LCID) is an American automotive and technology company that manufactures luxury electric vehicles. Currently, it offers the Lucid Air, its flagship model, and the new Lucid Gravity, for which the company opened orders in November 2024. Lucid Group, Inc. (NASDAQ:LCID) is one of the best EV stocks to invest in according to hedge funds.
On May 5, Needham analyst Chris Pierce reiterated a neutral “Hold” rating on Lucid Group, Inc. (NASDAQ:LCID). The analyst highlighted the promising start of the Gravity SUV, which gives the company an opportunity to attract new customers as production scales up. However, there are still concerns about Lucid Group, Inc.’s (NASDAQ:LCID) financial health due to the capital-intensive nature of its growth plans and ongoing losses. The valuation of Lucid Group, Inc. (NASDAQ:LCID) is under pressure because investors are not sure if the company will be able to scale operations, improve its margins, and succeed with future models that will be aimed at increasing the company’s total addressable market. Pierce also noted that LCID’s stock is trading at about 12.5 times the firm’s estimated adjusted EBITDA for 2029, discounted back to present value.
6. Plug Power Inc. (NASDAQ:PLUG)
Market Capitalization: $793.27 Million
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 serve as alternatives to traditional batteries in electric-powered vehicles and equipment. Hydrogen fuel cells can enhance runtime and charging efficiency to allow hydrogen-powered engines to increase their range and carry more payload compared to other electric vehicle power solutions. Plug Power Inc. (NASDAQ:PLUG) is one of the best EV stocks to invest in.
On April 28, TD Cowen analyst Jeffrey Osborne maintained a “Buy” rating on Plug Power Inc. (NASDAQ:PLUG) with a $3 price target. This decision came after the company secured a $525 million credit facility with Yorkville Advisors. This new financing arrangement will strengthen Plug Power Inc.’s (NASDAQ:PLUG) capital structure, allowing it to retire $82.5 million of its existing convertible notes. Osborne also pointed out that the company does not plan to raise equity in 2025. The company’s preliminary results for Q1 2025 were reported to have met Wall Street expectations, and Q2 guidance is projected to meet the consensus midpoint. This financial strategy seems to have reassured investors about the company’s stability and growth prospects.
Additionally, the company is taking steps to optimize its operational footprint, resources, and ongoing expenses. Plug Power Inc. (NASDAQ:PLUG) is calling these collective measures Project Quantum Leap. This project aims to reduce annual expenses by $150 million to $200 million. Through these actions, Plug Power Inc. (NASDAQ:PLUG) will further improve margins and cash flows as the company moves toward profitability.
5. Blue Bird Corporation (NASDAQ:BLBD)
Market Capitalization: $1.21 Billion
Number of Hedge Fund Holders: 25
Blue Bird Corporation (NASDAQ:BLBD) is an American school bus manufacturing company that ranks among the best EV stocks. The company manufactures a range of electric and low-emission buses. With sales into Africa, Asia, the Caribbean, Latin America, and the Middle East, Blue Bird Corporation (NASDAQ:BLBD) has a global presence.
In Q2 of fiscal 2025, which ended on March 29, 2025, Blue Bird Corporation (NASDAQ:BLBD) delivered a record 265 electric-powered buses. The company has reported significant growth in EV orders and by the end of the quarter, it had more than 1,100 EV buses either sold or in its firm order backlog. This supports the company’s EV sales target for 2025. From April 28 to April 30, Blue Bird Corporation (NASDAQ:BLBD) presented its latest zero- and ultra-low emission commercial vehicle platforms at the 2025 Advanced Clean Transportation (ACT) Expo, which is North America’s largest advanced transportation technology event. The company showcased both its groundbreaking electric step van and propane-powered stripped chassis at the industry event. According to Blue Bird Corporation (NASDAQ:BLBD), both its electric-powered and propane-powered stripped chassis are expected to be commercially available in the first quarter of 2026.
4. EnerSys (NYSE:ENS)
Market Capitalization: $3.57 Billion
Number of Hedge Fund Holders: 30
EnerSys (NYSE:ENS) is a leading stored energy systems and technology company that designs, manufactures, and distributes energy storage solutions and batteries. Through its solutions, the company serves various markets and industrial applications. It operates through four main lines of business: Energy Systems, Motive Power, Specialty, and New Ventures. EnerSys (NYSE:ENS) caters to various industries, including telecommunications, defense, and electric vehicles. Motive Power batteries and chargers are utilized in industrial electric-powered vehicles. Through its New Ventures division, the company offers energy storage and management systems for various applications including utility backup power and dynamic fast charging for electric vehicles. ENS ranks among the best EV stocks to invest in.
In September 2024, EnerSys (NYSE:ENS) announced it was selected for a $199M Department of Energy (DOE) award negotiation to partially fund its new lithium-ion cell production facility in Greenville, South Carolina. In January 2025, the company successfully completed contract and funding negotiations with the DOE to secure the $199 million award. EnerSys (NYSE:ENS) plans to invest about $615 million over four years to develop a state-of-the-art manufacturing facility that will cover 500,000 square feet and produce five-gigawatt hours (GWh) of lithium-ion cells annually. These cells will be used for a variety of products in all of the company’s business areas, including fast charging systems, NexSys iON batteries for electric forklifts, Alpha XRT-Li power systems for communication networks, and future high-energy Li6T batteries for military vehicles.
3. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Market Capitalization: $872.06 Million
Number of Hedge Fund Holders: 30
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is an Israeli smart energy technology company. It is best known for developing an intelligent inverter solution that improves the efficiency of solar photovoltaic (PV) systems. The company also develops and sells products for the EV market. Overall, SolarEdge Technologies, Inc. (NASDAQ:SEDG) serves a wide variety of energy market segments through its PV, storage, EV charging, batteries, and grid services solutions. Through its e-Mobility segment, the company offers a broad range of solutions for the EV market, including e-Drive systems, charging and DC converter solutions, vehicle management, and energy storage and distribution solutions. SEDG is one of the best EV stocks to invest in.
The company is investing to position itself for growth within the EV industry. In April 2024, SolarEdge Technologies, Inc. (NASDAQ:SEDG) completed the acquisition of Wevo Energy Ltd., a software startup that specializes in optimizing and managing EV charging systems for locations with large numbers of EV chargers, such as apartment buildings, workplace parking lots, and public charging locations. SolarEdge Technologies, Inc. (NASDAQ:SEDG) is looking to use Wevo’s expertise in EV charging optimization by integrating on-site solar generation, battery storage, and large-scale EV charging. Through this strategic acquisition, the company will be able to expand its offerings for commercial and industrial customers.
On May 7, 2025, SolarEdge Technologies, Inc. (NASDAQ:SEDG) launched a new solar-powered EV charging solution for businesses. The new solution is powered and controlled by an energy management system introduced after Wevo Energy’s acquisition in 2024. This solution is part of the company’s commercial and industrial ecosystem for commercial-scale solar and storage solutions and enables businesses with SolarEdge’s solar systems to charge their EV fleet with ‘power-optimized’ solar energy, which can significantly reduce their energy bills. According to SolarEdge Technologies, Inc. (NASDAQ:SEDG), one of the first beta customers reported a reduction in EV charging costs of about 70%.
2. Albemarle Corporation (NYSE:ALB)
Market Capitalization: $6.60 Billion
Number of Hedge Fund Holders: 36
Albemarle Corporation (NYSE:ALB) is a specialty chemical company and one of the largest producers of lithium globally. The company supplies lithium and bromine to customers in approximately 20 countries around the world and provides essential resources for use in critical ingredients for mobility, energy, connectivity, and health. It is one of the world’s largest providers of lithium for EV batteries. Albemarle Corporation (NYSE:ALB) is one of the best EV stocks to buy.
The company is focused on taking advantage of the rising global demand for lithium. Albemarle Corporation’s (NYSE:ALB) management highlighted that it expects global lithium demand to grow between 15% to 40% in 2025, depending on tariff impacts, policy changes, and economic trends. In the longer term, the management believes lithium demand will more than double from 2024 to 2030, driven by the global demand for EVs and grid storage. Additionally, the management expects global EV market penetration or share of vehicle production will surpass internal combustion engines by the end of the decade. To capitalize on these trends, Albemarle Corporation (NYSE:ALB) is improving production efficiency and optimizing its lithium conversion network. In Q4 2024, the company set new production records at its La Negra lithium carbonate plant in Chile and Meishan lithium hydroxide plant in China.
1. BorgWarner Inc. (NYSE:BWA)
Market Capitalization: $6.65 Billion
Number of Hedge Fund Holders: 43
BorgWarner Inc. (NYSE:BWA) is a global supplier of automotive and e-mobility solutions. The company provides essential components for internal combustion, hybrid, and electric vehicles. It designs, manufactures, and sells products mainly to original equipment manufacturers (OEMs). BorgWarner Inc. (NYSE:BWA) ranks among the best EV stocks to buy now.
On May 8, JPMorgan increased its price target on BorgWarner Inc. (NYSE:BWA) from $42 to $43 and maintained an “Overweight” rating. This decision follows the company’s strong Q1 2025 results, with both revenue and earnings before interest and taxes (EBIT) surpassing JPMorgan’s estimates and Bloomberg’s consensus. BorgWarner Inc. (NYSE:BWA) reported revenue of $3.515 billion, above JPMorgan’s estimate of $3.480 billion and the consensus of $3.421 billion. Even though vehicle production declined year-over-year, the company successfully grew its organic sales, mainly because of a 47% surge in electric product sales. Additionally, the firm highlighted the management’s decision to exit the charging business because of tough market conditions in North America and Europe. This strategic move is expected to reduce sales by $30 million but improve EBIT by $15 million in 2025 and by $30 million in 2026. BorgWarner Inc. (NYSE:BWA) also plans to consolidate its battery systems business into one facility. This is expected to help the company save about $10 million in 2025 and $20 million in 2026. These strategic actions, combined with strong cost control and execution, are expected to help offset lower industry production and timing issues because of tariffs. As a result, JPMorgan now expects the company’s EBIT to reach $1.36 billion in 2025, up from its previous forecast of $1.29 billion, and $1.4 billion in 2026, an increase from the previous $1.35 billion.
Overall, BWA ranks first among the 12 small-cap EV stocks to buy now. While we acknowledge the potential of small-cap EV stocks, 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BWA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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