8 Best Automotive Stocks to Buy According to Analysts

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 (NASDAQ:RIVN) 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. (NYSE:STLA) 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. (NYSE:NIO) 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.

Click to continue reading and see the 5 Best Automotive Stocks to Buy According to Analysts.

Disclosure: None. Follow Insider Monkey on Google News.