Certain automotive companies have held up surprisingly well in the current environment, and that’s especially true with companies that supply automotive parts. The high interest rate regime was supposed to crush automotive companies across the board, and early tariffs specifically targeted countries that produced the most automotive parts for the U.S.
Even then. These stocks have done well since high interest rates have made it difficult for low-income consumers to buy new cars. Instead, they have opted for repairing their existing vehicles, which has been a tailwind for automotive parts companies for the past two years. The average age of vehicles was already at a record 12.6 years in 2024, so this tailwind isn’t going away anytime soon.
Customers who have higher incomes have kept on buying new vehicles. It is mostly because of them that consumer spending has held up across the board. Here are the biggest winners from this trend.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Financial Services Stocks that are up the Most in 2025 in another article.
A worker assembling parts in an automotive factory for an autonomous vehicle.
Methodology
For this article, I screened the best-performing vehicles & parts stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Ferrari NV (NYSE:RACE)
Number of Hedge Fund Holders In Q4 2024: 37
Ferrari NV (NYSE:RACE) designs and manufactures high-performance luxury sports cars and competes in Formula 1 racing worldwide.
Ferrari’s stock has seen significant growth in 2025, primarily due to its strong financial performance and strategic commercial policy updates. In March 2025, Ferrari announced an update to its commercial policy regarding import tariffs on EU cars into the USA.
The company decided to maintain unchanged commercial terms for orders of all models imported before April 2, 2025, and for three specific model families (Ferrari 296, SF90, and Roma), regardless of import date. For other current models, Ferrari implemented a maximum 10% price increase in coordination with its dealer network. Despite these tariff challenges, Ferrari confirmed its financial targets for 2025, noting only a potential risk of 50 basis points reduction in profitability percentage margins.
The company reported outstanding financial results for 2024, with CEO Benedetto Vigna highlighting “quality of revenues over volumes” as the driving factor behind their performance. Ferrari experienced a strong product mix and growing demand for personalizations, which contributed to robust growth. The company expects to reach the high-end of most of its profitability targets for 2026, a year ahead of schedule.
The consensus price target of $481.6 implies 4% upside.
RACE stock is up 9.74% year-to-date.
14. AutoZone Inc (NYSE:AZO)
Number of Hedge Fund Holders In Q4 2024: 56
AutoZone Inc (NYSE:AZO) retails and distributes aftermarket automotive replacement parts and accessories through over 6,500 stores in the United States, Mexico, and Brazil.
AutoZone’s stock performance in 2025 has been driven by several key factors. In its second quarter fiscal 2025 results released in March, the company reported revenue of $4 billion, exceeding analyst expectations of $3.98 billion. This represents a 2.4% year-over-year increase in total sales. While earnings per share of $28.29 missed forecasts by $0.77, investors responded positively to the strong revenue performance.
The company’s domestic same-store sales grew by 1.9% in Q2 2025, but more impressive was the international same-store sales surge of 9.5% on a constant currency basis.
This international growth has been a significant driver of investor confidence. AutoZone has bought back $330 million of stock in the quarter.
The EPS miss of $28.29 versus a forecast of $29.06 did not dent investor enthusiasm, given the strong revenue beat.
The consensus price target of $3,814.9 implies 1.57% upside.
AZO stock is up 17.31% year-to-date.
13. O’Reilly Automotive Inc (NASDAQ:ORLY)
Number of Hedge Fund Holders In Q4 2024: 63
O’Reilly Automotive Inc (NASDAQ:ORLY) is a leading retailer of automotive parts, tools, and supplies serving professional installers and do-it-yourself customers across the United States, Mexico, and Canada.
O’Reilly’s stock performance in 2025 has been influenced by its Q1 2025 financial results released in April. The company reported sales of $4.14 billion, which is a $161 million increase compared to the previous year. However, the company missed earnings per share expectations, which caused some volatility in the stock price immediately following the announcement.
Despite the EPS miss, O’Reilly’s strategic investments and expansion plans have bolstered investor confidence. The company opened 38 net new stores across the US and Mexico in Q1 2025. Capital expenditures for the quarter were $287 million, with projected total capital expenditure for 2025 between $1.2 billion and $1.3 billion. These investments signal O’Reilly’s commitment to growth and market expansion.
The consensus price target of $1,414.56 implies 0.6% upside.
ORLY stock is up 18.60% year-to-date.
12. Garrett Motion Inc (NYSE:GTX)
Number of Hedge Fund Holders In Q4 2024: 32
Garrett Motion Inc (NYSE:GTX) is a cutting-edge technology leader delivering differentiated solutions for emission reduction and energy efficiency in the automotive industry.
The company’s stock has seen significant growth in 2025 primarily due to its successful expansion into electric vehicle technologies. In May 2025, Garrett announced it had won its first major series production award for electric motors with an industry-leading supplier, with production expected to start in 2027. This strategic win represents a significant milestone in the company’s diversification beyond its traditional turbocharger business into zero-emission technologies.
Despite challenging industry conditions, Garrett reported strong Q1 2025 financial results that showed resilience. The company posted net sales of $878 million and a net income of $62 million with a 7.1% margin, while maintaining an Adjusted EBIT of $131 million with a 14.9% margin.
Garrett also continued to strengthen its global leadership in turbocharging by securing new business with both established and new automakers, particularly in plug-in hybrid and range-extended electric platforms.
The consensus price target of $14 implies 28.91% upside.
GTX stock is up 21.04% year-to-date.
11. Goodyear Tire & Rubber Co (NASDAQ:GT)
Number of Hedge Fund Holders In Q4 2024: 37
Goodyear Tire & Rubber Co (NASDAQ:GT) is a global mobility company that develops, manufactures, distributes, and markets a wide range of rubber tires and related products.
The company’s stock has performed well in 2025 largely due to its strategic modernization initiatives and product expansion plans. In February 2025, Goodyear announced plans to modernize and add capacity to its Lawton, Oklahoma plant, which will add approximately 10 million units of new capacity for premium tires in 2025 and 2026. This investment is focused on higher rim sizes and additional volume in higher profit, higher margin segments.
Goodyear also revealed plans to introduce five new power lines to markets worldwide and add nearly 200 SKUs in highly profitable segments of the market. These new products will include updates to the WeatherReady, Wrangler, and ultra-high performance Eagle product lines, which are expected to generate returns and greater value at premium prices. CEO Mark Stewart expressed confidence that these additions would build momentum for the second half of 2025 as the new products reach volume in the marketplace.
The company has also taken steps to improve operational efficiency. In January 2025, Goodyear approved a plan to reduce production capacity and costs in the Americas segment, including approximately 850 job reductions at its Danville, Virginia facility. This restructuring is expected to improve Americas segment operating income by approximately $15 million in 2025 and by approximately $65 million thereafter.
The consensus price target of $13.78 implies 25.16% upside.
GT stock is up 22.33% year-to-date.
10. Motorcar Parts of America Inc (NASDAQ:MPAA)
Number of Hedge Fund Holders In Q4 2024: 16
Motorcar Parts of America Inc (NASDAQ:MPAA) is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts including alternators, starters, wheel bearing assemblies, brake components, and test solutions for electric vehicle powertrain development.
In its fiscal third-quarter 2025 earnings report, Motorcar Parts of America significantly exceeded Wall Street expectations with earnings per share of $0.11 (versus forecasted $0.02) and revenue of $186.2 million (exceeding expected $178.7 million).
The company achieved a net income of $2.3 million compared to a net loss of $47.2 million in the same period the previous year. Gross profit increased by 49.4% to $44.9 million, and gross margin improved to 24.1% from 17.5%. Additionally, the company successfully reduced its net debt by 26%, amounting to a decrease of $30.3 million.
In March 2025, Motorcar Parts of America established a new stock trading plan under SEC Rule 10b5-1 to buy back shares as part of its ongoing $37 million repurchase authorization.
The consensus price target of $14 implies 47.37% upside.
MPAA stock is up 25.00% year-to-date.
9. Carvana Co (NYSE:CVNA)
Number of Hedge Fund Holders In Q4 2024: 84
Carvana Co (NYSE:CVNA) is an online used car retailer based in Tempe, Arizona that allows customers to browse, purchase, finance, and trade in vehicles from their homes.
Investor confidence received a boost in early January 2025 when Carvana reinstated a $4 billion loan arrangement with Ally Financial. This news prompted RBC to upgrade the stock to Outperform and increase its price target, leading to a 5.03% rise in the share price.
Further momentum came on March 24, 2025, when the stock climbed 10.04% following news of a strategic partnership and positive analyst actions.
Piper Sandler and JPMorgan issued new price targets. The company reported strong performance in late 2024, with profitability in Q3 2024. Carvana is scheduled to report its first quarter 2025 financial results on May 7, 2025.
The consensus price target of $254.76 implies 0.94% downside.
CVNA stock is up 26.43% year-to-date.
8. Dana Inc (NYSE:DAN)
Number of Hedge Fund Holders In Q4 2024: 27
Dana Inc (NYSE:DAN) is an American supplier providing axles, driveshafts, and various systems for conventional, hybrid, and electric vehicles globally.
The company’s stock saw a notable increase recently, jumping 12% after reporting its first-quarter 2025 financial results. Dana announced these results on April 30, 2025, showing sales of $2.4 billion and net income of $25 million, which the company described as in line with expectations.
However, the market reacted positively as Dana reported a statutory profit of $0.17 per share, surpassing analyst expectations which had predicted a loss. This surprise profit led analysts to significantly increase their earnings per share forecasts for the rest of 2025.
Consequently, the consensus price target for Dana stock rose 6.1%. In other recent news, Dana announced a quarterly dividend in February 2025 and received industry recognition, including a 2025 Automotive News PACE Award and a Supplier of the Year award from FleetPride in late April 2025.
The consensus price target of $18.14 implies 24.27% upside.
DAN stock is up 27.06% year-to-date.
7. Hesai Group (NASDAQ:HSAI)
Number of Hedge Fund Holders In Q4 2024: 17
Hesai Group (NASDAQ:HSAI) is a global leader specializing in three-dimensional light detection and ranging, known as lidar, solutions for automotive and robotics applications.
The company’s stock has performed strongly in 2025, driven by positive developments and market expectations. A significant boost occurred around March 19, 2025, when Hesai announced it was selected as the exclusive lidar provider for a major European automotive manufacturer’s next-generation global vehicle platform, calling it the largest global program in the automotive lidar industry.
In mid-March, Hesai’s stock rallied after DBS analyst Elizabelle Pang reiterated a Buy rating and raised the price target from $28 to $35. The analyst cited expected benefits from the growing robotaxi industry, strong company guidance for 2025, good gross margins, and ongoing ADAS development. Earlier, in February 2025,
Hesai announced an expanded partnership with Chinese electric vehicle maker BYD to supply lidar sensors for multiple models starting production in 2025. The company filed its 2024 annual report on April 1, 2025.
The consensus price target of $22.8 implies 24.66% upside.
HSAI stock is up 32.34% year-to-date.
6. Autozi Internet Technology (Global) Ltd (NASDAQ:AZI)
Number of Hedge Fund Holders In Q4 2024: 2
Autozi Internet Technology (Global) Ltd (NASDAQ:AZI) is a lifecycle automotive service provider in China that uses a digital platform for its supply chain and offers new cars, parts, accessories, and insurance-related services.
The company’s stock experienced a significant rally in April 2025, gaining 44% during the month and recovering from previous weakness. This surge brought the stock price to be roughly flat for the year 2025 after the bounce. The positive momentum followed the announcement of its fiscal year 2024 financial results on January 27, 2025. For the fiscal year ending September 30, 2024, Autozi reported revenues increased by 9.9% to $124.7 million from $113.5 million in the prior year.
Investors appear optimistic about Autozi’s revenue growth, which has outperformed many competitors and the broader industry’s forecast. The company achieved an 86% aggregate revenue increase over the three years leading up to its fiscal 2024 results.
AZI stock is up 40.02% year-to-date.
5. Cooper-Standard Holdings Inc (NYSE:CPS)
Number of Hedge Fund Holders In Q4 2024: 14
Cooper-Standard Holdings Inc (NYSE:CPS) is a global supplier of sealing, fuel and brake delivery, and fluid transfer systems primarily for the automotive industry.
Cooper-Standard’s stock price surged significantly in late April and early May 2025, jumping 46% in the month leading up to May 3, 2025. This rise was primarily driven by the company’s strong first quarter 2025 financial results reported on May 1, 2025.
Cooper Standard announced a return to profitability, posting net income of $1.6 million compared to a net loss of $31.7 million in the first quarter of 2024. Adjusted earnings per share were $0.19, dramatically beating analyst forecasts, which anticipated a loss.
The improved profitability resulted from operational efficiencies, including $20 million saved through manufacturing and purchasing improvements and $8 million from cost initiatives, rather than sales growth, as revenue slightly declined by 1.4%. Gross profit margin expanded significantly to 11.6% from 9.1%, and the adjusted EBITDA margin doubled to 8.8%.
The consensus price target of $12 implies 45% downside.
CPS stock is up 61.36% year-to-date.
4. XPeng Inc (NYSE:XPEV)
Number of Hedge Fund Holders In Q4 2024: 17
XPeng Inc (NYSE:XPEV) is a prominent Chinese manufacturer specializing in smart electric vehicles. The company offers several popular EV models in China and has received investment from Volkswagen.
XPeng’s stock performed strongly early in 2025, surging over 40% by early February, driven by rapidly increasing vehicle deliveries. The company has consistently reported robust delivery growth.
In April 2025, XPeng delivered 35,045 smart EVs, a 273% increase year-over-year, marking the sixth consecutive month with over 30,000 deliveries. For the first four months of 2025, total deliveries reached 129,053 vehicles, representing a 313% increase compared to the same period in 2024.
This strong delivery performance, achieved despite increased competition and a slowing Chinese economy, indicates sustained demand. Analysts anticipate XPeng’s revenue growth will continue to significantly outpace the industry average in the coming years.
The consensus price target of $22.2 implies 12.2% upside.
XPEV stock is up 67.17% year-to-date.
3. China Yuchai International Ltd (NYSE:CYD)
Number of Hedge Fund Holders In Q4 2024: 6
China Yuchai International Ltd (NYSE:CYD) is a holding company primarily engaged in manufacturing, assembling, and selling engines through its main subsidiary.
The company reported its financial results for the second half and full year of 2024 on February 25, 2025. While revenue for the second half of 2024 was slightly down compared to the same period in 2023 at RMB 8.8 billion, gross profit increased by 14.3% to RMB 1.4 billion.
For the full fiscal year 2024, revenue increased to RMB 19.1 billion from RMB 18.0 billion in 2023, and gross profit rose to RMB 2.8 billion from RMB 2.5 billion.
This improved profitability, particularly the increased gross margin reported in the second half of 2024, likely contributed positively to investor sentiment in early 2025.
CYD stock is up 74.29% year-to-date.
2. Niu Technologies (NASDAQ:NIU)
Number of Hedge Fund Holders In Q4 2024: 5
Niu Technologies (NASDAQ:NIU) is a leading provider of smart urban mobility solutions, specializing in high-performance electric motorcycles, mopeds, bicycles, kick-scooters, and e-bikes.
Niu reported strong financial results on March 17, 2025, for the fourth quarter and full year 2024. Fourth-quarter revenues increased 71.1% year-over-year to RMB 819.2 million, and full-year revenues rose 24.0% year-over-year to RMB 3.3 billion.
Net losses narrowed significantly compared to the previous year for both periods. The company also issued optimistic guidance, forecasting first quarter 2025 revenue growth of 25% to 40% year-over-year and full year 2025 sales volume growth between 40% and 70%.
Furthermore, on April 4, 2025, Niu announced a 57% year-over-year increase in total unit sales for the first quarter of 2025, driven by 66% growth in China and positive reception to new products like the NX Pro.
NIU stock is up 97.77% year-to-date.
1. Vroom Inc (NASDAQ:VRM)
Number of Hedge Fund Holders In Q4 2024: N/A
Vroom Inc (NASDAQ:VRM) is now primarily an automotive finance and AI analytics company, operating through its subsidiaries United Auto Credit Corporation (UACC) and CarStory, after discontinuing its used car e-commerce operations in early 2024.
Vroom’s stock performance in 2025 is heavily influenced by its emergence from Chapter 11 bankruptcy. The restructuring process discharged approximately $290 million in debt and involved the cancellation of old equity, followed by the issuance of new common stock and warrants. This successful emergence significantly improved the company’s financial position.
A key material event was the relisting of Vroom’s new common stock on the Nasdaq Global Market under the ticker symbol VRM, which commenced trading on February 20, 2025. This relisting restored visibility and trading accessibility for investors. The company’s strategic pivot away from its capital-intensive e-commerce business to focus on its UACC auto lending and CarStory analytics platforms is central to its plan for future profitability.
VRM stock is up 643.08% year-to-date.
While we acknowledge the potential of VRM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VRM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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