In this article, we will take a look at the 5 Best EV Stocks to Invest In According to Hedge Funds. For a deeper discussion and an extended list, please see the 10 Best EV Stocks to Invest In According to Hedge Funds.
5. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 50
Ford Motor Company (NYSE:F) is among the Best EV Stocks.
On June 15, Reuters reported that Ford Motor Company (NYSE:F) and other automakers are struggling to obtain U.S. Commerce Department authorization to continue importing its China-built Lincoln Nautilus SUV, noting new restrictions on Chinese-linked software in connected vehicles. The automaker said the model uses US developed software installed in China, triggering the licensing requirement under the rule.
Reuters reported software prohibitions take effect with 2027 models, while separate hardware restrictions begin in 2030. This sets up a broader industry challenge.
Reuters said the rules were adopted in January 2025 over national security concerns related to vehicle data collection. It has forced automakers to reassess sourcing strategies while navigating an opaque approval process.
Rhodium Group researchers in a study stated that the hardware restrictions will prove “more cumbersome” and time-intensive. General Motors has already set a 2027 deadline for suppliers to remove China-linked components from its supply chain.
Ford Motor Company (NYSE:F) manufactures, distributes, and sells vehicles. It works in the Ford Blue, Ford Model E, Ford Pro, Ford Next, Ford Credit, and Corporate Other segments.
4. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 51
On June 11, NXP Semiconductors N.V. (NASDAQ:NXPI) announced an interim dividend. NXP USA, Inc. stated its board approved $1.014 per share for Q2 2026, payable July 9 to shareholders of record June 24. The firm noted “continued and significant strength” in its capital structure and confidence in long-term growth and cash flow.
Separately, on June 9, Wells Fargo raised its price target on NXP Semiconductors N.V. (NASDAQ:NXPI) to $305 from $265. The firm maintained an “Equal Weight” rating on the stock. The firm sees “physical AI” fueling gradual demand and estimates a $1.6 billion semiconductor opportunity by 2030 due to humanoid applications.
For the second quarter 2026, the company projected revenue of $3.35 billion to $3.55 billion and gross profit of $1.89 billion to $2.04 billion on a GAAP basis. This showed expected quarterly growth of 5% to 12% and year-over-year expansion of 14% to 21%.
NXP Semiconductors N.V. (NASDAQ:NXPI) is a holding company that provides semiconductor solutions. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Malaysia, and other countries.
3. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 58
On June 9, Wells Fargo raised its price target on ON Semiconductor Corporation (NASDAQ:ON) to $140 from $115. The analyst maintained an “Overweight” rating on the shares. It also noted the emergence of “physical AI,” pointing to humanoid robotics as a potential long-term growth driver for analog and mixed signal chipmakers. The firm estimated a $1.6 billion semiconductor opportunity by 2030 linked to that trend.
That same day, ON Semiconductor Corporation (NASDAQ:ON) announced the launch of GaNEXUS. It is a gallium nitride power portfolio designed to improve efficiency and power density across artificial intelligence data centers, robotics, and energy infrastructure applications. The company said its GaNEXUS FETs, from 40V to 650V, are now sampling and include integrated protection features to simplify system integration and improve reliability.
The corporation stated that the platform delivers faster switching speeds, lower losses, and high thermal performance. When paired with its Treo platform, it enables more solid system-level power solutions.
ON Semiconductor Corporation (NASDAQ:ON) works in the provision of intelligent power and sensing solutions with a primary focus on automotive and industrial markets. It operates through Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group segments.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 77
On June 10, Reuters reported General Motors Company (NYSE:GM) is reconsidering plans to use lithium-iron phosphate batteries for future electric vehicles. Battery chief Kurt Kelty said the company may instead prioritize lithium manganese-rich chemistry. The Detroit automaker plans to begin LFP production for EVs in 2027.
Kelty told Reuters there is “a possibility where LFP does not earn its way into our portfolio,” while calling LMR the “workhorse” for future high-volume deployment. He said that the Tennessee plant will still begin producing LFP cells this month, but for energy storage systems. He said LMR offers similar US production costs with higher energy density, even though the firm has worked on the chemistry for over a decade.
Reuters reported rivals, including Tesla, Rivian, and Ford, have added LFP-based EVs to cut costs. General Motors Company (NYSE:GM) continues relying on nickel-rich batteries across its EV lineup, with LMR development “on schedule,” Kelty said. Although there are known technical challenges limiting near-term mass adoption.
General Motors Company (NYSE:GM) designs, manufactures, and sells trucks, crossovers, cars, and automotive parts, as well as software-enabled services and subscriptions.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 123
Tesla, Inc. (NASDAQ:TSLA) is among the Best EV Stocks.
On June 17, Reuters reported that the Dutch road authority said about Tesla, Inc. (NASDAQ:TSLA)’s 40,000 Teslas in the Netherlands are now using “self-driving” software and collectively driven 24 million kilometers without serious incidents. The RDW agency monitors performance monthly. It stated the system, which is classified as driver assistance, can steer, accelerate, and brake but requires driver oversight, noting it is “at least as safe as other driver assistance systems.”
Reuters noted the RDW conducted 3,000 hours of testing before approval and is seeking broader EU authorization.
On June 10, Reuters reported Tesla, Inc. (NASDAQ:TSLA) secured authorization to place its Full Self-Driving supervised driver-assistance software in Belgium. Flanders transport minister Annick De Ridder stated on X, “I just signed the approval,” after the company completed local testing. Reuters stated that the approval allows rollout nationwide. Belgium becomes the fifth EU country to permit the system after the Netherlands, Lithuania, Estonia, and Denmark.
Tesla, Inc. (NASDAQ:TSLA) works in the electric automobile and energy generation and storage technologies. It operates through the Automotive and Energy Generation and Storage segments.
While we acknowledge the potential of TSLA 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 TSLA and that has 100x upside potential, check out our report about the cheapest AI stock.
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