In this article, we will discuss: 9 Best Auto Stocks to Buy Now.
Auto stocks are shares of businesses that design, develop, produce, market, and sell automobiles.
According to figures issued by the European Automobile Manufacturers’ Association (ACEA) on December 23, European new car sales increased year over year in November for the fifth consecutive month, due to rising demand for electric vehicles, Reuters reported. While total EU registrations rose 2.1% to about 900,000 vehicles, sales in the EU, Britain, and the European Free Trade Association gained 2.4% to roughly 1.1 million vehicles.
The market share of battery-electric vehicles was 21% in the EU, 26% in the UK, and 98% in Norway. The combined registrations of battery electric, hybrid electric, and plug-in hybrid vehicles soared to 65.6% of EU sales, up from 56% in August 2024. Plug-in hybrids jumped by 4.2%, hybrids by 38.4%, and battery electric registrations by 44.1%.
Despite recent improvements, ACEA noted volumes are still below pre-pandemic levels. Analysts observed that long-term momentum for electric vehicles exists, notwithstanding legislative uncertainties.
With that said, here are the 9 Best Auto Stocks to Buy Now.
Methodology:
We sifted through the ETFs and online rankings to form an initial list of the 20 Best Auto Stocks. From the resultant dataset, we chose the 9 Best Auto Stocks with the highest number of hedge fund holders for each stock using Insider Monkey’s database of hedge funds as of Q3 2025. We have also mentioned the analysts’ upside potential as of December 26. Finally, we ranked these stocks in ascending order based on hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9. VinFast Auto Ltd. (NASDAQ:VFS)
Number of Hedge Fund Holders: 7
Analysts’ Upside Potential as of December 26: 82.93%
VinFast Auto Ltd. (NASDAQ:VFS) is among the Best Auto Stocks.
On December 10, 2025, VinFast Auto Ltd. (NASDAQ:VFS) announced that preliminary domestic deliveries of 23,186 electric vehicles were made in Vietnam in November 2025. This represents the company’s highest monthly sales volume and brings the total number of deliveries made so far this year to 147,450 units. The Green lineup was the primary contributor, headed by the Limo Green, which delivered 9,642 units, the most monthly sales for a single model. After four months on the market, the Limo Green’s total sales hit 16,146 units. Furthermore, 4,655 VF 3 units, 3,072 VF 5 units, 2,801 VF 6 units, and 1,225 VF 7 units were delivered in November.
The VF 3 is Vietnam’s best-selling car with 40,660 sold so far this year. The VF 5 comes in second with 38,478, excluding 12,354 Herio Green units. The VF 6 tops the B-SUV market with 19,750 deliveries, while the VF 7, VF 8, and VF 9 have total sales of 8,292, 3,172, and 1,755 units, respectively. According to VinFast Auto Ltd. (NASDAQ:VFS), these deliveries help the company achieve its objective of doubling its worldwide sales by 2024.
Nonetheless, the stock is down by 19.29% YTD, as of December 26, 2025.
VinFast Auto Ltd. (NASDAQ:VFS) produces vehicles, offers leasing services, trades smartphones, and engages in other associated enterprises. The company is engaged in developing and manufacturing high-quality EVs, e-scooters, and e-buses.
8. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 21
Analysts’ Upside Potential as of December 26: 43.95%
Lucid Group, Inc. (NASDAQ:LCID) is among the Best Auto Stocks.
CNBC reported on December 20, 2025, that Lucid Group, Inc. (NASDAQ:LCID) is expanding the manufacturing of its Gravity three-row SUV. It is marking its first entry into the SUV market, which is expected to retail for approximately $79,900. So far, the business has sold just a few hundred Gravity products in 2025, with manufacturing limited due to magnet, aluminum, and chip scarcity. As per the firm, those supply-chain issues have been fixed, and a second assembly shift has been introduced. As a result, deliveries have gone up for seven straight quarters, with a 47% year-over-year rise in the third quarter.
Lucid Group, Inc. (NASDAQ:LCID) reported a declining gross profit and a net loss of about $1 billion for the third quarter. The company completed the quarter with overall liquidity of $5.5 billion after raising a delayed draw term loan arrangement with Saudi Arabia’s Public Investment Fund to about $2 billion, providing funding until the first half of 2027. The PIF owns about 55% of Lucid Group, Inc. (NASDAQ:LCID), according to FactSet.
The firm’s interim CEO, Mark Winterhoff, stated that the Gravity is more in demand than the Air sedan, with the majority of client setups costing more than $100,000. In 2024, Lucid Group, Inc. (NASDAQ:LCID) delivered 10,241 vehicles, mostly Air sedans. The business is planning a mid-size crossover priced at $50,000 and aims to invest in autonomous vehicle technology through collaborations with Uber, Nuro, and Nvidia, and boost branding to tackle limited brand awareness.
Lucid Group, Inc. (NASDAQ:LCID) is a technology and automobile firm. It develops the next generation of electric vehicle technology.
7. BRP Inc. (NASDAQ:DOO)
Number of Hedge Fund Holders: 21
Analysts’ Upside Potential as of December 26: 19.56%
BRP Inc. (NASDAQ:DOO) is among the Best Auto Stocks.
On December 18, 2025, theFly reported that BRP Inc. (NASDAQ:DOO) recognized the Australian Competition and Consumer Commission’s (ACCC) decision to oppose the planned sale of Telwater Pty to Yamaha Motor Australia, a subsidiary of Yamaha Motor Co. In the wake of the verdict, the company confirmed that it is examining the ACCC’s ruling and weighing all of its options to decide on the best course of action. As a result of the opposition, the firm remains the owner of Telwater and will continue to run the company. The business affirmed that the ACCC ruling will not affect BRP Inc. (NASDAQ:DOO)’s fiscal year 2026 financial guidance due to the scale of Telwater’s operations.
Separately, the company reported that performance will be comparable to the first quarter and that the second quarter is anticipated to be the last period of major network inventory reduction. Although no full-year guidance was released owing to macroeconomic and tariff uncertainty, the second half might produce double-digit sales growth and improved, normalized EBITDA and EPS compared to last year, assuming retail market conditions stay the same.
BRP Inc. (NASDAQ:DOO) produces, designs, manufactures, distributes, and promotes snowmobiles, all-terrain vehicles, and personal watercraft.
6. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 22
Analysts’ Upside Potential as of December 26: 51.61%
XPeng Inc. (NYSE:XPEV) is among the Best Auto Stocks.
According to CnEVPost, on December 26, 2025, Xpeng announced its official debut in Qatar during a brand launch event in Doha, marking a new stage in its Middle East and Africa expansion. The business announced the impending local introduction of the P7+ sedan and unveiled its G9 and G6 SUVs during the event. Furthermore, the firm displayed products from Aridge, its business that manufactures flying cars. The business stated that Qatar will serve as a gateway for further expansion throughout the Gulf area.
On December 16, 2025, XPeng Inc. (NYSE:XPEV) established a strategic relationship with Axess Limited, naming the company as its distributor in Mauritius and initiating its market venture into Eastern Africa. As per the firm, collaboration would facilitate future growth in Africa and other growing countries and boost its sales and service network in the Middle East and Africa.
Earlier in December, XPeng Inc. (NYSE:XPEV) inaugurated a flagship experience center in Abu Dhabi and a new showroom and service facility in Egypt.
Cash and cash equivalents, restricted cash, short-term investments, and time deposits were RMB48.33 billion (US$6.79 billion). The quarter’s total sales of RMB20.38 billion represented a 101.8% increase over the prior year.
XPeng Inc. (NYSE:XPEV) is China’s leading electric car manufacturer, focusing on the midrange to high-end category as well as tech-savvy clientele.
5. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 32
Analysts’ Upside Potential as of December 26: 4.34%
Stellantis N.V. (NYSE:STLA) is among the Best Auto Stocks.
Stellantis N.V. (NYSE:STLA) disclosed on December 15, 2025, that it has hired more than 1,000 workers for its Windsor Assembly Plant in Ontario in less than two months, as part of a goal to create 1,500 new jobs, as reported by WSJ. The hiring supports plans to add a third shift to the facility early next year to fulfill expected demand for Dodge Chargers and Chrysler minivans. The firm stated that the new positions are meant to boost the Windsor facility’s manufacturing capacity.
The job announcement coincides with ongoing negotiations between Stellantis N.V. (NYSE:STLA) and the Canadian government on the automaker’s choice to move Jeep Compass production from its Brampton, Ontario, facility to Illinois. Canadian Industry Minister Melanie Joly has accused the firm of violating a 2022 funding agreement connected to the Brampton plant’s continued operation and has already issued a default notice giving the business 30 days to reply. According to the company, it is concentrated on continuing negotiations with Canadian officials.
Nearly 240 workers from the Brampton facility accepted transfer offers to relocate to Windsor as part of the Windsor expansion. Workers who turn down such transfers will still get 70% of their pay and health benefits. Since 2022, Stellantis N.V. (NYSE:STLA) has claimed to have made 7.9 billion Canadian dollars in investments in Canada.
Stellantis N.V. (NYSE:STLA) is an automotive equipment manufacturer.
4. Visteon Corporation (NASDAQ:VC)
Number of Hedge Fund Holders: 33
Analysts’ Upside Potential as of December 26: 39.16%
Visteon Corporation (NASDAQ:VC) is among the Best Auto Stocks.
The Fly reported on December 8, 2025, that Morgan Stanley has taken on coverage of Visteon Corporation (NASDAQ:VC) with a $114 price target and an Equal Weight rating. The start was a part of a larger adjustment throughout the automotive and shared mobility business related to the company’s 2026 projection, and it came after a shift in analyst coverage. Morgan Stanley stated that it is becoming more cautious as 2026 approaches, stating projections that the “winter” of electric vehicles will last until the following year. According to the analyst’s assessment, this opinion is countered by a more optimistic outlook for internal combustion engines and hybrid cars.
Separately, Visteon Corporation (NASDAQ:VC) released a revised forecast in the last quarter that shows performance is still within the range of its previous estimates. As a result of the most recent customer production plans, the business reported that revenues are now tracking below the midpoint of the range, closer to roughly $3.75 billion. Adjusted EBITDA and free cash flow are anticipated to stay high despite these challenges. The company expects EBITDA margins for the fourth quarter to be in the mid-12% range, which is consistent with the run rate that has been achieved during the previous three quarters.
Visteon Corp. is a supplier of vehicles. It produces electronic products for original equipment vehicle manufacturers such as Ford, Nissan, Renault, Mazda, BMW, General Motors, and Honda.
3. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 34
Analysts’ Upside Potential as of December 26: 15.69%
NIO Inc. (NYSE:NIO) is among the Best Auto Stocks.
NIO Inc. (NYSE:NIO) announced the outcomes of its November deliveries on December 1. The company shipped 36,275 vehicles in November, jumping 76.3% over the same month last year. Firefly delivered 6,088 cars, Onvo delivered 11,794 cars, and Nio, the company’s smart electric vehicle brand, delivered 18,393 cars. There have been 949,457 deliveries as of November 30.
According to the company’s projections, the fourth quarter of 2025 would see the delivery of between 120,000 and 125,000 automobiles, an increase of around 65.1% to 72.0% over the same period in 2024.
NIO Inc. (NYSE:NIO)’s revenue for the last quarter rose 17% year over year, just short of the low end of forecasts. Vehicle prices dropped by 18% as a result of price competition and changes in the product mix. After three years, the vehicle operating margin has returned to the mid-teens with a 41% rise in vehicle volume.
NIO Inc. (NYSE:NIO) is one of China’s top producers of electric vehicles, or EVs, with a focus on the high-end market. The suggested retail pricing for its current model portfolio, which has a driving range of 465–710 km, ranges from CNY 207,000 to CNY 598,000. It also launched a new mass-market brand in 2024 to capitalize on strong demand while maintaining its luxury reputation, as per Morningstar analysts.
NIO Inc. (NYSE:NIO) is a renowned electric car manufacturer that focuses on the premium category.
2. BorgWarner Inc. (NYSE:BWA)
Number of Hedge Fund Holders: 45
Analysts’ Upside Potential as of December 26: 10.82%
BorgWarner Inc. (NYSE:BWA) is among the Best Auto Stocks.
According to TheFly, on December 8, 2025, Morgan Stanley reduced BorgWarner Inc. (NYSE:BWA) to Equal Weight from Overweight and boosted its price objective to $49 from $42 due to an analyst coverage adjustment. The rating modification was a part of a larger adjustment related to the company’s 2026 outlook that affected the cars and shared mobility segment. Morgan Stanley noted that it is leaning more cautiously going into next year, citing forecasts that the electric car “winter” will last until 2026. According to the research note, this projection is partly countered by a considerably more optimistic view of internal combustion engines and hybrid powertrains.
Separately, BorgWarner Inc. (NYSE:BWA) increased its financial performance estimates for 2025 in the last quarter. The company stated that it anticipates net sales to be between $14.1 billion and $14.3 billion, as opposed to a consensus forecast of $14.31 billion and roughly $14.1 billion in 2024. The firm’s previous estimate of $14.0 billion was revised to $14.4 billion in the latest range. Higher industrial production projections and positive effects from foreign exchange movements were cited by management as the reasons for the shift. These positive effects are likely to be largely offset by consumer production delays in North America and Europe, which continue to impact volumes in certain areas.
BorgWarner Inc. (NYSE:BWA) primarily supplies automobile original equipment manufacturers with drivetrain systems, powerdrive systems, battery and charging systems, and turbo and thermal management technology.
1. Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 46
Analysts’ Upside Potential as of December 26: 22.38%
Ferrari N.V. (NYSE:RACE) is among the Best Auto Stocks.
Berenberg reduced its price objective for Ferrari N.V. (NYSE:RACE) from EUR 399 to EUR 381 while keeping a Buy rating, according to a December 16, 2025, theFly report.
Before this, on December 11, 2025, BNPP upgraded Ferrari N.V. (NYSE:RACE) from Neutral to Outperform and set a price objective of $463, noting projections for 2026 earnings growth.
The business also increased its yearly forecast and stated it anticipates earning about 9 billion euros by 2030. The firm raised its previous goal of more than 7 billion euros to at least 7.1 billion euros in net revenue for 2025. Furthermore, the company plans for an adjusted EBITDA of at least 3.6 billion euros by 2030, primarily due to development in sports cars and product mix.
Ferrari N.V. (NYSE:RACE) is among the world’s most prominent luxury automobile manufacturers. A Ferrari represents Italian flair, exclusivity, and driving performance comparable to Formula One. The firm maintains its wide-moat brand strength by carefully cultivating each of these brand pillars, according to Morningstar analysts.
Nonetheless, the stock is down by 9.20% YTD, as of December 26.
While we acknowledge the potential of RACE 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 RACE and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. 9 Best Auto Stocks to Buy Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
