13 Best Car Stocks to Buy in 2025

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Tesla, Inc. (NASDAQ:TSLA) continues to be the leading EV manufacturer in the world and the Best Auto Stock. The world’s most successful automaker, the pioneer of “premium electric vehicles,” now owns the vast majority of the US EV market. Investors clearly have high expectations for CEO Elon Musk and his team, which include full self-driving technology, robotaxis, and ongoing EV sales. The firm’s first-mover advantage in the electric vehicle market enabled it to deliver just under 1.8 million vehicles in 2024 and maintain its position as the leading brand in many areas.

After a challenging first quarter for Tesla, Inc. (NASDAQ:TSLA), Elon Musk recently announced that he will resign from his position in the US government’s DOGE advisory group to give more time to the firm. Musk’s political activity has sparked protests and boycotts that might be harming the brand, as the business reported a 70% reduction in profits and a 20% decline in car sales in the March quarter. Musk stated that he will now spend more time guiding the firm through uncertain times, even though he will continue to be active with the government in a limited capacity.

Cantor Fitzgerald reaffirmed its Overweight rating on Tesla, Inc. (NASDAQ:TSLA) on April 28 and established a target price of $355. The firm is still optimistic despite the stock’s 27% decline this year, pointing to the company’s solid financial standing and ambitious future ambitions, such as Robotaxis, a $30,000 model in 2025, and full self-driving expansion. The investment firm believes that its robotics, energy storage, and artificial intelligence will all increase in the long run, and it views the current decline as a chance for patient investors to buy.

Overall, TSLA ranks first on our list of  best car stocks to buy in 2025. While we acknowledge the potential of car companies, our conviction lies in the belief that 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 TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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