In this article, we look at the 5 Best Automotive Stocks to Buy According to Analysts. Please visit 8 Best Automotive Stocks to Buy According to Analysts if you’d like to see an extended list and the methodology behind it.
5. Tesla Inc. (NASDAQ:TSLA)
Potential Upside: 19.54%
Number of Hedge Fund Holders: 137
Tesla Inc. (NASDAQ:TSLA) is one of the automotive stocks to buy according to analysts. The stock grew 31.63% in the past year, while it declined 14.10% year-to-date. On April 22, Reuters reported that Tesla is further boosting its spending plan to over $25 billion this year to support its initiatives in artificial intelligence, robotics, and chips.
Pixabay/Public Domain
Tesla said in the Q1 update:
“We are making the necessary investments that will ensure our access to key materials and componentry in each region across vehicle, energy and AI as trade and geopolitics become more uncertain. In recent months, we have announced further regionalization and vertical integration of critical supply chains,”
The company reported a 16% rise in total revenues in the first quarter of the year to $22.4 billion from $19.3 billion in the same period last year.
On the other hand, on April 23, Canaccord Genuity raised its price target on Tesla to $450 from $420 and maintained a Buy rating on the shares, citing the company’s higher capital expenditure plan, according to a report by TheFly.
According to ratings compiled by CNN of 54 analysts, 44 percent placed a Buy rating on Tesla, while 43 percent marked it with a Hold rating. The Tesla stock has a median price target of $450, a 19.54% upside from the current price of $376.30.
Tesla, Inc. (NASDAQ:TSLA) is a developer, manufacturer, designer, lessor, and seller of electric vehicles and energy generation and storage systems. The company operates across China, the United States, and globally through the Automotive and Energy Generation and Storage segments.
4. General Motors (NYSE:GM)
Potential Upside: 24.28%
Number of Hedge Fund Holders: 81
General Motors (NYSE:GM) is one of the best automotive stocks to buy, according to analysts. In the past year, the stock grew 65.22%, while it posted a 3.62% year-to-date decline. Out of 28 analysts polled by CNN, 71 percent placed a Buy rating on General Motors. The stock registered a median price target of $97, a 24.28 percent upside from its current price of $78.05.
On April 14, Deutsche Bank analyst Edison Yu upgraded General Motors to Buy from Hold, raising the price target to $90 from $83, following the recent pullback in shares, according to a report by TheFly. Despite near-term volatility caused by geopolitical developments, the analyst expressed optimism about the resilience that General Motors has demonstrated multiple times in recent years.
On April 21, General Motors claimed that it had become the first U.S. automaker to secure enough renewable energy to meet 100% of its electricity use across all its U.S. facilities. The company said it has reduced operational emissions by 52% since 2018, meaning its energy transition is also advancing its vision of a zero-emissions future.
It added that its domestic renewable energy investments have generated about $1.9 billion in GDP impact since 2015. On top of this, projects contracted through 2026 will add an additional $333 million. The automaker emphasized that projects it has invested in also support an average of 1,500 construction jobs per year across states like Michigan, Texas, Ohio, Arkansas, and Illinois — and fund rural schools and emergency services through local taxes.
General Motors (NYSE:GM) engages in the design, manufacture, and sale of trucks, crossovers, cars, and automotive parts, and in providing software-enabled services and subscriptions.
3. Ferrari N.V. (NYSE:RACE)
Potential Upside: 27.78%
Number of Hedge Fund Holders: 44
Ferrari N.V. (NYSE:RACE) is one of the best automotive stocks to buy according to analysts. Ferrari continues to hold a consensus Strong Buy rating, with 81% of 27 analysts polled by CNN assigning Buy or higher ratings to the stock. The stock registered a median price target of $449.73, a 27.78% upside from its current price of $351.95.
On April 21, Bloomberg reported that Ferrari NV has settled on a preliminary price of about €550,000 or $647,000 for its first fully electric supercar, citing people familiar with the matter.
Earlier in February, the company unveiled the name and interior design of the Ferrari Luce, noting that it collaborated with San Francisco-based creative collective LoveFrom on the design. According to a Reuters report on February 10, Ferrari has received positive feedback from clients on the Luce model after the unveiling of its interior details.
The anticipated electric vehicle is set to be officially presented in May this year.
Ferrari N.V. (NYSE:RACE) produces some of the world’s most iconic and recognizable luxury sports cars, sold in over 60 markets worldwide. In lifestyle, the company designs and creates a selection of personal luxury goods, collectibles, and experiences.
2. VinFast Auto Ltd (NASDAQ:VFS)
Potential Upside: 37.61%
Number of Hedge Fund Holders: 5
VinFast Auto Ltd (NASDAQ:VFS) is one of the best automotive stocks to buy according to analysts. In a filing with the Securities and Exchange Commission (SEC) on April 22, VinFast reported a 61% increase in global vehicle deliveries in the first quarter of the year, to 58,577. It added that the Limo Green and the VF 3 were two of the best-selling models with cumulative deliveries of 12,693 and 11,088 vehicles, respectively.
Additionally, VinFast also announced that it delivered 143,136 e-scooters and e-bikes in the first quarter, representing a 219% increase year-over-year. It emphasized that the significant growth reflects the strong momentum of the green transition.
In 2025, the company registered $3.6 billion in total revenues, a 105.4 percent increase from the previous year, driven by higher electric vehicle deliveries.
VinFast Chairwoman Thuy Le earlier emphasized scale and unit cost optimization efforts. She said:
“For 2026 and beyond, scale and unit cost optimization remain the primary levers in our path to profitability. These will be supported by strategic investments to expand overseas capacity, the commercialization of our next-gen vehicles, and collaboration with partners from within Vingroup’s ecosystem and other established players to further integrate the use of Artificial Intelligence inside our EVs and factories to ultimately lower the total cost of ownership for our customers.”
VinFast currently enjoys a strong Buy rating, with 80 percent of the five analysts compiled by CNN assigning a Buy rating to the stock. The average price target of the stock is $6.00, a 37.61% upside from the current price of $4.36.
VinFast Auto Ltd (NASDAQ:VFS) designs and manufactures electric vehicles. It offers electric scooters (e-scooters) and electric buses (e-buses). It provides an e-mobility ecosystem built around customers, community, and connectivity alongside new vehicle roll-out.
1. Xpeng Inc. (NYSE:XPEV)
Upside: 42.05%
Number of Hedge Fund Holders: 27
Xpeng Inc. (NYSE:XPEV) is one of the best automotive stocks to buy according to analysts. On April 24, Bloomberg reported that XPeng is in discussions with overseas automakers regarding potential cooperation amid plans to commercialize its driver-assistance technology globally as well as expand production to areas outside of China.
Earlier in April, XPeng reported that it delivered a total of 62,682 vehicles in the first quarter. In March alone, it delivered 27,415 vehicles, representing an 80% increase over the prior month.
In March, XPeng introduced a three-year strategy for Latin America and officially entered the Mexican market. Under this strategy, the company plans to launch both pure electric and range-extended electric models in 2027, as it lays the groundwork for a wider market coverage and targets a leading position in the region by 2028.
Meanwhile, Reuters reported on April 23 that the company is expecting to start large-scale production of its flying cars next year, as well as its humanoid robots in the fourth quarter of this year, according to XPeng President Brian Gu. He also cited tremendous potential to increase its cooperation with German automaker Volkswagen, which began the mass production of its first EV model last month.
Of 30 analysts polled by CNN, 73 percent assigned a Buy rating to XPeng. The stock registered a median price target of $23.67, a 42.05 percent upside from its current price of $16.66.
XPeng Inc. (NYSE:XPEV) is a leading Chinese Smart EV and NEV company that designs, develops, manufactures, and markets Smart EVs and NEVs that appeal to the large and growing base of technology-savvy middle-class consumers. Its mission is to become a smart technology company trusted and loved by users worldwide.
While we acknowledge the potential of XPEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XPEV and that has 100x upside potential, check out our report about the cheapest AI stock.
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