In this article, we look at the 8 Best Automotive Stocks to Buy According to Analysts.
In a recent report, Couterpoint Research Associate Director Greg Basich said the global automotive industry stands at a crossroads, balancing near-term electric vehicle (EV) strategy adjustments with growing energy uncertainty. He explained:
“While automakers are pulling back on aggressive EV plans, geopolitical tensions and conflicts are quietly reinforcing the long-term case for electrification. Short-term setbacks in EV adoption are also being offset by structural tailwinds like falling battery costs and fuel supply uncertainty.”
Counterpoint Research explained that the global automotive industry is currently navigating two contrasting dynamics. On the one hand, automakers are recalibrating their EV strategies amid mounting losses and slower-than-expected adoption; on the other hand, the war in Iran has disrupted global energy markets, which will help the EV industry in the longer term.
Basich emphasized that the automotive industry is entering a period of shuffling as companies align their EV strategies with evolving market realities. He said:
“Western OEMs have not abandoned EV development but have significantly scaled back earlier ambitious plans, adopting a more conservative and focused approach to EV launches. For instance, Ford has announced a new universal EV platform, while GM is revisiting the Chevrolet Bolt EUV. At the same time, Stellantis continues to strengthen its Leapmotor JV in Europe and Volkswagen and Audi are advancing EV platforms with Chinese partners and Rivian. Volvo has also delayed its 100% ZEV target beyond 2030, while Mercedes-Benz has increased its spending on combustion engines, reflecting a broader industry shift toward measured electrification strategies.”
On the other hand, Counterpoint said that, with the war disrupting oil supply from the Middle East, this is expected to support EV demand as countries look to reduce their reliance on imported fuel in the long term. In addition, battery prices are also expected to fall below $70/kWh by 2030 and reach $55/kWh by 2035, which could significantly reduce EV costs, given that batteries account for nearly 40% of total vehicle cost.
Given current market conditions, Counterpoint expects Battery EV (BEVs) to account for around 25% of global passenger vehicle sales by 2030, while Plug-in Hybrid EV (PHEVs) are projected to reach around 8%. Extended-Range EVs (EREVs) are also gaining momentum and are expected to expand beyond China into regions such as Southeast Asia and Europe.
From an investment standpoint, the sector presents both risks and opportunities. While geopolitical uncertainties are affecting the sector’s EV adoption strategies, the war’s impact on oil supply may support EV demand in the long term. With that said, let us explore the 8 best automotive stocks in according to analysts.
Our Methodology
To identify companies in this list, we compiled a list of companies in the auto manufacturing and auto parts sectors with market capitalizations exceeding $2 billion. From this pool, we ranked the companies by potential upside, placing the stock with the highest upside at the top. Additionally, we also included the number of hedge funds holding stakes in these companies as of the fourth quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All pricing data is as of market close on April 24, 2026.
8. Rivian Automotive, Inc. (NASDAQ:RIVN)
Potential Upside: 8.98%
Number of Hedge Fund Holders: 45
Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the best automotive stocks to buy according to analysts. In the past year, Rivian’s shares have increased 25.25%, while they have declined 14.89% year-to-date. On April 22, Reuters reported that Rivian has started the production of its lower-cost R2 SUVs, with deliveries expected later this spring.
Earlier on April 2, Rivian reported that for the first quarter of the year, it produced 10,236 vehicles at its manufacturing facility in Normal, Illinois, and delivered 10,365 vehicles. It added that production and delivery results for the quarter are in line with its outlook. For this year, the company has a delivery range guidance of 62,000 to 67,000 vehicles.
In March, the company announced a partnership with Uber Technologies, Inc. to deploy up to 50,000 Fully Autonomous R2 Robotaxis. Under the partnership, Uber or its fleet partners are expected to purchase 10,000 fully autonomous R2 robotaxis, with the option to purchase up to 40,000 more in 2030. Initial deployments are expected to begin in San Francisco and Miami in 2028 and will expand to 25 cities by 2031.
Rivian is an American automotive technology company that develops and manufactures category-defining electric vehicles as well as vertically integrated technologies and services.
7. Stellantis N.V. (NYSE:STLA)
Potential Upside: 9.95%
Number of Hedge Fund Holders: 34
Stellantis N.V. (NYSE:STLA) is one of the best automotive stocks to buy according to analysts. Based on 30 analyst ratings compiled by CNN, Stellantis stock has an average price target of $8.86, representing a 9.95% upside from the current price of $8.06. On April 24, Reuters reported that Stellantis is looking to focus its funding on core car brands Jeep, Ram, Peugeot, and Fiat, as part of CEO Antonio Filosa’s strategic plan, which will be announced in May. Without directly commenting, the European carmaker indicated to Reuters that the brands were its strength and stressed its mix of “global scale with deep local roots”.
Last week, one of the mentioned brands, Peugeot, announced that its technology partner, Dongfeng, will produce its two new concept cars at its Wuhan plant. The brand said the Peugeot Concept 6 and Peugeot Concept 8 prefigure a new line-up of large sedans and SUVs, produced in China for China and for export to Peugeot’s overseas markets as part of its international growth plan.
On April 15, Stellantis reported an estimated 12 percent rise in consolidated shipments for the three months ending March 31, 2026, at 1.4 million units. The company attributed the increase to higher shipments in Enlarged Europe and North America, which grew by 12% and 15%, respectively. This was further supported by year‑over‑year shipments growth in the Middle East & Africa and South America.
In its full-year 2025 financial results, Stellantis reported net revenues of €153.5 billion, a 2 percent decrease from the previous year, mainly due to FX headwinds and from H1 2025 net pricing declines. The company also reported a net loss of €22.3 billion caused by 25.4 billion of full-year unusual charges.
Stellantis N.V. designs, manufactures, distributes, and sells vehicles. Among its brands are Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall.
6. Nio Inc. (NYSE:NIO)
Upside: 13.56%
Number of Hedge Fund Holders: 29
Nio Inc. (NYSE:NIO) is one of the best automotive stocks to buy according to analysts. The stock grew 44.08% over the past year and 20.82% year-to-date. The company will soon usher its executive flagship SUVs into the battery electric era with the NIO ES9 model. On April 24, Nio said the vehicle’s official launch and delivery are set to start in late May.
Earlier in April, Nio reported that total deliveries in the first quarter nearly doubled to 83,465, up 98.3% year-over-year, exceeding the upper end of its delivery guidance. For the month of March alone, the company delivered 35,486 vehicles, representing an increase of 136% year-over-year and 70.6% month-over-month.
Of the first quarter total, the NIO brand delivered 22,490 vehicles, up 120.1% year-over-year and 48.4% month-over-month; the ONVO brand delivered 6,877 vehicles, up 42.7% year-over-year and 130.7% month-over-month; and the firefly brand delivered 6,119 vehicles, up 130.3% month-over-month.
On March 13, HSBC upgraded its rating on NIO to Buy from Hold, driven by better visibility and stronger conviction on 2026 volume growth and earnings improvement trajectory. Based on analyst ratings compiled by CNN, Nio has a median price target of $7.05, a 13.56% upside from the current price of $6.21.
Nio Inc. is a global smart electric vehicle company founded in November 2014. It is also committed to fostering its own research and development capabilities for core technologies, having filed for and obtained over 9,900 patents.
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. 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 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. 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 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. 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.
