Which electric car stock is best?

Since individual investing goals vary, there's no way to categorically say which EV stock is best. For those seeking a more conservative option, BYD is a good fit since it has already achieved profitability and gained considerable market share. Investors more focused on growth, however, may find NIO and Rivian more compelling.

What EV company is the next Tesla?

While NIO is often recognized as the Chinese version of Tesla, Lucid has also received strong comparisons to Elon Musk's EV endeavor.

What EV stock can I buy instead of Tesla?

There are numerous options for EV investors seeking alternative investments to Tesla. While NIO, Rivian, and Lucid are pure-play EV stocks that represent great options, investors looking to mitigate risk may feel more comfortable choosing an EV ETF.

Who will dominate the EV market?

BYD and Tesla are both industry leaders, but time will tell if they are able to maintain their commanding positions.

How do government policies impact the electric car market and stocks?

From incentives related to purchasing electric cars to policies aimed at reducing vehicle emissions, there are various government policies that have a direct impact on electric car stocks.

Are electric car stocks a good investment?

Since individual investing goals vary, it's impossible to categorically say whether electric car stocks are a good investment. Those interested in portfolio diversification and who are seeking growth opportunities (while maintaining a multiyear investing horizon) may find electric car stocks to be a good investing option.

Do electric car companies pay dividends?

Because many EV companies are upstarts that require substantial reinvestment, investors will find few electric car companies that pay dividends. For passive income opportunities, Ford and Volkswagen are two leading options.

Best Electric Vehicle (EV) Stocks to Buy in 2026

By Scott Levine – Updated Mar 20, 2026 at 10:05 AM EST | Fact-checked by Frank Bass

Key Points

Tesla remains a key player in EVs, having delivered over 1.63 million vehicles in 2025.
NIO's vehicle deliveries surged by 46.9% in 2025, signaling robust growth potential.
Rivian's evolving production capabilities hint at future profitability despite current losses.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Tesla (NASDAQ:TSLA)	$1.4 trillion	0.00%	Automobiles
Nio (NYSE:NIO)	$11.4 billion	0.00%	Automobiles
Rivian Automotive (NASDAQ:RIVN)	$18.5 billion	0.00%	Automobiles
General Motors (NYSE:GM)	$65.8 billion	0.87%	Automobiles
BYD Company (OTC:BYDDY)	$143.1 billion	1.42%	Automobiles
Li Auto (NASDAQ:LI)	$14.1 billion	0.00%	Automobiles
Volkswagen Ag (OTC:VWAGY)	$29.3 billion	7.17%	Automobiles
Ford Motor Company (NYSE:F)	$46.0 billion	5.21%	Automobiles
Lucid Group (NASDAQ:LCID)	$3.3 billion	0.00%	Automobiles
VinFast Auto Ltd. (NASDAQ:VFS)	$6.7 billion	0.00%	Automobiles

Data as of Mar 21, 2026. Showing 10 of 10 tickers.

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NASDAQ: TSLA

Tesla

Today's Change

(-3.33%) $-12.67

Current Price

$367.63

Key Data Points

Market Cap

$1.4T

Day's Range

$364.48 - $379.87

52wk Range

$214.25 - $498.83

Volume

3.8M

Avg Vol

61M

Gross Margin

18.03%

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Any list of electric car stocks should include the granddaddy of them all, Tesla. While some customers have taken exception to Elon Musk's ventures with the Department of Government Efficiency (DOGE) in Washington, D.C., the electric car company still demands respect as a force driving the EV industry forward after delivering more than 1.63 million vehicles in 2025. Most of the vehicles were Model 3 sedans and Model Y crossover SUVs, and the rest were Tesla's older, pricier models.

Despite a challenging macroeconomic backdrop, Tesla continues to aggressively expand production. Production is currently ramping up at Tesla's factories in Texas and Germany.

Tesla resorted to price cuts to sell vehicles in 2025 as consumer demand faltered, a move that has hurt the bottom line. In 2025, Tesla's automotive segment gross margin slipped to 16.2% from 16.9% in 2024. Still, it succeeded in expanding its free cash flow to $6.2 billion -- a 74% year-over-year increase.

With a market capitalization currently over $1.4 trillion, Tesla stock trades at lofty price-to-earnings (P/E) and price-to-sales (P/S) ratios. The valuation makes the stock risky, but there's no denying the company is a leader in the electric vehicle industry.

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2. NIO: A Chinese SUV specialist

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NYSE: NIO

Nio

Today's Change

(-7.81%) $-0.46

Current Price

$5.43

Key Data Points

Market Cap

$11B

Day's Range

$5.40 - $5.86

52wk Range

$3.02 - $8.02

Volume

53M

Avg Vol

47M

Gross Margin

13.66%

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Chinese electric car maker NIO has been publicly traded since September 2018, but several initial public offerings (IPOs) by other Chinese electric car makers -- such as Xpeng(XPEV -8.41%) -- have increased investor interest in NIO.

Benefiting from strong customer demand, NIO reported 326,028 vehicle deliveries in 2025, a 46.9% increase over 2025. Management expects growth to extend into 2026 as well. During the company's fourth quarter 2025 financial results, management projected first quarter 2026 deliveries between 80,000 and 83,000 units, representing a year-over-year increase of 90.1% to 97.2%.

As expected, total vehicle revenue also rose. In 2025, NIO posted revenue of about $12.5 billion, approximately 33% higher than that which it reported in 2024. In addition, NIO expanded its gross profit margin from 9.9% in 2024 to 13.6% in 2025.

NIO further expanded its product line with the deliveries of the ET9 starting in 2025, a vehicle that NIO characterized as "a flagship smart executive sedan" on its fourth quarter 2024 conference call. The company's offerings are set to expand further this year, with the ES9 SUV planned for an April 2026 unveiling.

3. Rivian: This EV maker keeps trucking along

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NASDAQ: RIVN

Rivian Automotive

Today's Change

(-7.51%) $-1.21

Current Price

$14.91

Key Data Points

Market Cap

$19B

Day's Range

$14.81 - $16.05

52wk Range

$10.36 - $22.69

Volume

51M

Avg Vol

31M

Gross Margin

-276.59%

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Investors were very excited about Rivian when the EV company went public in late 2021. It was one of the biggest U.S. IPOs ever, with the company raising almost $12 billion. Rivian's market value briefly topped $150 billion soon after its debut.

Rivian had barely delivered any of its electric trucks or SUVs when it went public, so investing in the stock was the ultimate leap of faith. The company produced more than 1,000 vehicles in 2021, a tiny number compared to Tesla and other large automakers. Deliveries have grown in the ensuing years, though they dropped from 51,579 vehicles in 2024 to 42,284 vehicles in 2025 due to a temporary pause of production lines at its plant in Illinois in preparation for the launch of production of its R2 model in the first half of 2026.

Rivian is taking a risk by vertically integrating critical components like electronics, the propulsion platform, and software. The strategy may pay off if the company can rapidly grow production over the next few years, but it also means costs will be higher in the near term.

Although it's still incurring net losses, it's making progress towards profitability. In 2025, Rivian reported a gross profit of $144 million compared to a gross loss of $1.2 billion in 2024.

Rivian had $3.6 billion in cash on its balance sheet as of Dec. 31, 2025, so it can afford to lose vast sums as it ramps up production. But if the company hits a roadblock, it could be in serious trouble.

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Revenue

Revenue is a business’s gross income or the amount of money it brings in from regular operations before costs are considered.

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NYSE: GM

General Motors

Today's Change

(-1.41%) $-1.04

Current Price

$72.75

Key Data Points

Market Cap

$66B

Day's Range

$72.10 - $73.85

52wk Range

$41.60 - $87.62

Volume

312K

Avg Vol

8.2M

Gross Margin

6.27%

Dividend Yield

0.87%

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Legacy automaker GM may not be a name that investors immediately recognize as an electric car company, but that may change before long. While the company is still committed to the production of internal combustion engine vehicles, it's also enthusiastic about its prospects regarding electric vehicles.

The company has built serious momentum towards reimagining itself as a company steering towards electric vehicle popularity among drivers. Despite the challenges facing electric car makers with federal consumer incentives ending, Paul Jacobson, the company's CFO, espoused optimism for its EVs in the company's Q4 2025 conference call, stating, "As consumer adoption of EVs increases, albeit at a slower pace than previously anticipated, we expect to achieve the necessary scale to deliver EVs profitably over time."

Unlike many EV companies that are reinvesting in their businesses to spur innovation, GM is rewarding shareholders with a modest dividend in addition to reinvesting in the company. As of March 2026, GM stock provided investors with a 0.98% forward-yielding dividend.

5. BYD: Holding the pole position in the EV industry

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OTC: BYDDY

BYD Company

Today's Change

(-1.07%) $-0.14

Current Price

$12.95

Key Data Points

Market Cap

$143B

Day's Range

$12.89 - $13.15

52wk Range

$11.20 - $20.05

Volume

1.4M

Avg Vol

1.9M

Gross Margin

23.15%

Dividend Yield

1.42%

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NASDAQ: LI

Li Auto

Today's Change

(-2.34%) $-0.40

Current Price

$16.70

Key Data Points

Market Cap

$14B

Day's Range

$16.68 - $17.07

52wk Range

$15.71 - $32.02

Volume

169K

Avg Vol

3.9M

Gross Margin

18.67%

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Li Auto represents another Chinese company that deserves to be on EV investors' radars. Compared to BYD, which first offered an EV to customers in 2008, Li Auto is a newer name on the EV scene in China that began scaling production of its EVs in 2019. Since then, the company has made tremendous progress in grabbing a larger slice of the Chinese EV market. As of the end of 2025, the company had 548 retail stores in 159 cities and 561 servicing centers and Li Auto-authorized body and paint shops. Helping customers to keep their (electric) motors running, Li Auto also has 3,907 supercharging stations equipped with 21,651 charging stalls.

Consistently providing drivers with new options, Li Auto launched a six-seat battery electric SUV, the Li i8, in July 2025, and it subsequently launched a more affordable battery electric SUV, Li i6, which management expects will reach a production capacity of 20,000 units by early 2026.

While profitability has been inconsistent, Li Auto did report net income of $162.9 million in 2025. Its sizable cash position of $8.1 billion (as of Dec. 31, 2025) suggests Li Auto is well-positioned to endure temporary market downturns while also providing resources to reinvest in the business and create new EV models.

7. Volkswagen AG -- VW is committed to EV

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OTC: VWAGY

Volkswagen Ag

Today's Change

(-1.97%) $-0.20

Current Price

$9.94

Key Data Points

Market Cap

$29B

Day's Range

$9.90 - $10.13

52wk Range

$9.20 - $12.83

Volume

415K

Avg Vol

147K

Gross Margin

17.03%

Dividend Yield

7.17%

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While investors of a certain age may not be able to separate Volkswagen from the VW Beetles that were popular in the 1960s and 1970s, today's Volkswagen is equally focused on luxury. It owns Audi, Bentley, Bugatti, and several other exclusive brands, as well as economical offerings. The company is committed to expanding its presence in the EV market, and it's proving successful at winning over customers. In 2025, Volkswagen Group reported a 32% year-over-year increase in global deliveries of all-electric vehicles.

Beyond its current vehicle offerings, Volkswagen has demonstrated a commitment to advancing the EV industry with its investment in solid-state battery developer QuantumScape (NYSE:QS), an investment that amounts to about $460 million and a 17% ownership stake. Volkswagen also formed a joint venture with Rivian in 2024 to scale EV platforms. At the end of 2025, Volkswagen's equity interest in Rivian totaled 12.3%.

A company on firm financial footing, thanks to its consistent and robust profitability, Volkswagen is another strong contender for investors seeking exposure to the EV industry, yet who are concerned about risk exposure.

8. Ford Motor Company -- A legacy carmaker that keeps on (EV) truckin'

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NYSE: F

Ford Motor Company

Today's Change

(-1.03%) $-0.12

Current Price

$11.52

Key Data Points

Market Cap

$46B

Day's Range

$11.37 - $11.68

52wk Range

$8.44 - $14.79

Volume

148M

Avg Vol

64M

Gross Margin

6.52%

Dividend Yield

5.21%

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Reporting $19.5 billion in impairment charges in 2025, Ford is pivoting from the EV initiative it implemented earlier this decade, yet it remains a viable opportunity for investors to gain exposure to the EV industry. After finding weaker customer demand than it had originally estimated, Ford has decided to no longer pursue the development of certain EV models and opted, instead, for a broader approach.

But that's not to say that the company doesn't remain intent on expanding its electrified offerings. The company projects that about 50% of its global volume will be hybrids, extended-range EVs, and electric vehicles, compared to 17% today.

Ford reported a company record in 2025: hybrid vehicle sales rose 21.7% year-over-year to 228,072 vehicles. And that's not the only indication of Ford's success in the EV market. The F-150 Hybrid sold a record 84,934 trucks in 2025, up 15.0% from 2024, and held onto its title as America’s best-selling full-size hybrid pickup. Similarly, Maverick Hybrid totaled 81,034 pickups in 2025, setting a new sales record, earning it the title of best-selling mid-size hybrid truck in the United States.

9. Lucid Group --

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NASDAQ: LCID

Lucid Group

Today's Change

(-2.28%) $-0.23

Current Price

$10.06

Key Data Points

Market Cap

$3.3B

Day's Range

$9.98 - $10.43

52wk Range

$9.12 - $33.70

Volume

135K

Avg Vol

7.3M

Gross Margin

-9280.51%

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Unlike many of the other names on this list, Lucid Group has only represented an EV investment option since 2021, when it completed a business merger with a special purpose acquisition company (SPA). For those who regret not buying Tesla stock early in its journey towards EV dominance, Lucid stock may be especially appealing. Taking a page out of the Tesla playbook, Lucid's strategy mirrors Tesla's, which initially catered to the luxury market before introducing more affordable EV models. In late 2026, Lucid plans to start production of its more affordable midsize EV, Lucid Cosmos, which is expected to have a starting price under $50,000.

Like Tesla, Lucid has won high marks from critics. The company's luxury EV sedan, Lucid Air, has won numerous industry awards, including being named to Car and Driver's 10Best Cars list for 2024, 2025, and 2026, while the company's SUV, Lucid Gravity found itself on the 2026 10Best Trucks and SUVs list. Customers are flocking to Lucid's EVs as well. The company delivered 15,841 vehicles in 2025, a 55% year-over-year increase.

Yet another similarity with Tesla is Lucid's interest in robotaxis. Early in 2026, Lucid announced its intent to partner with Uber on bringing a robotaxi to market in 2026 with plans to ramp up production in the next two to five years.

The company is still unprofitable, and it has some ways to go before achieving breakeven on the bottom line. It reported a net loss of $2.7 billion in 2025, but those comfortable with a higher risk investment may be rewarded if the company continues driving in the right direction.

10. VinFast Auto

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NASDAQ: VFS

VinFast Auto Ltd.

Today's Change

(-0.17%) $-0.01

Current Price

$2.85

Key Data Points

Market Cap

$6.7B

Day's Range

$2.83 - $2.86

52wk Range

$2.56 - $3.82

Volume

44K

Avg Vol

304K

Gross Margin

-3329.51%

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Investing in Electric Cars FAQ

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About the Author

Scott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.

TMFProudMonkey

@TMFProudMonkey

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Tesla. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy.

How to invest in electric car stocks

For investors charged up about powering their portfolios with EV stocks, there are only a few simple steps they need to take:

Open your brokerage app: Log in to your brokerage account where you handle your investments.

Search for the EV stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.

Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.

Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.

Submit your order: Confirm the details and submit your buy order.

Review your purchase: Check your portfolio to ensure your order was filled as expected, and adjust your investment strategy accordingly.

What makes the electric car industry different from the traditional auto industry?

Until recently, very few companies manufactured any kind of electric vehicle, but every major automaker in the world is developing or producing an EV now.

Because the major interest in electric cars is so recent, the only established industry leader is Tesla. Start-up EV makers can compete fairly well with traditional automakers for electric car market share, making it difficult to discern which companies will ultimately dominate the market. That unpredictability makes investing in the electric car industry riskier than adding portfolio exposure to the automotive industry as a whole.

Pros and cons of investing in electric car stocks

Pros:

Electric car stocks provide the potential for significant growth. Grand View Research estimated the global electric car market size to be $1.3 trillion in 2024 and forecasts it to rise to reach USD $6.5 trillion by 2030, growing at a compound annual growth rate (CAGR) of 32.5% from 2025 to 2030.

While investment goals may vary, portfolio diversification is a crucial element of any investment strategy, and electric car stocks could help achieve this goal.

Investing in electric car stocks often provides exposure to the autonomous driving industry, which is also expected to experience significant growth in the years to come.

Cons:

If a downturn in the economy occurs, consumers may be less inclined to purchase new cars -- let alone electric cars.

When oil prices are low, the allure of owning an electric car diminishes for some people, so lower energy prices could hinder the growth of electric car manufacturers.

In the past, government incentives have contributed to increased adoption of electric cars; however, the elimination of these incentives could reduce customer demand for electric cars.

Factors to consider before investing in electric car stocks

Since the electric car industry is still relatively young, investors must be flexible in their approach to evaluating potential investments. With respect to legacy carmakers -- like General Motors and Volkswagen -- that have focused on expanding their lineups with electric models, investors should verify the companies' investments are proving to be profitable by using the earnings per share (EPS) metric to assess their financial health and the price-to-earnings (P/E) ratio to evaluate the stocks' price tags.

For less-established companies, investors will want to monitor whether they are growing revenue, as they're likely to be unprofitable. Similarly, since the P/E ratio will be useless for companies that are still incurring net losses, investors will want to use the P/S ratio to gauge the stocks' valuations.

The future of the electric car industry

Multiple major automakers have recently adopted Tesla's EV charging technology, making it likely to become the standard in the U.S. This standardization should make purchasing and charging EVs simpler, which could help drive growth in the industry.

Many companies participating in the EV sector are going public, while legacy automakers plan to release a plethora of electric vehicles over the next five years. Investing in this highly competitive and fast-growing industry is likely to be profitable, but it's important to take steps to minimize your investment risk. Don't invest in just one electric car company; hold positions in several companies of various sizes, and consider buying shares in an electric vehicle ETF.

Best Electric Vehicle (EV) Stocks to Buy in 2026

Key Points

Key Data Points

2. NIO: A Chinese SUV specialist

Key Data Points

3. Rivian: This EV maker keeps trucking along

Key Data Points

Key Data Points

5. BYD: Holding the pole position in the EV industry

Key Data Points

Key Data Points

7. Volkswagen AG -- VW is committed to EV

Key Data Points

8. Ford Motor Company -- A legacy carmaker that keeps on (EV) truckin'

Key Data Points

9. Lucid Group --

Key Data Points

10. VinFast Auto

Key Data Points

Related investing topics

Best Renewable Energy Stocks to Buy in 2026 and How to Invest in Them

Best Solar Energy Stocks to Buy in 2026 and How to Invest

Best Transportation Stocks for 2026 and How to Invest

Best Quantum Glass Battery Stocks to Buy in 2026

Investing in Electric Cars FAQ

Which electric car stock is best?

Which electric car stock is best?

What EV company is the next Tesla?

What EV company is the next Tesla?

What EV stock can I buy instead of Tesla?

What EV stock can I buy instead of Tesla?

Who will dominate the EV market?

Who will dominate the EV market?

How do government policies impact the electric car market and stocks?

How do government policies impact the electric car market and stocks?

Are electric car stocks a good investment?

Are electric car stocks a good investment?

Do electric car companies pay dividends?

Do electric car companies pay dividends?

About the Author

Stocks Mentioned

Our Guides

Premium Investing Services

Investing in Electric Cars FAQ

Which electric car stock is best?

Which electric car stock is best?

What EV company is the next Tesla?

What EV company is the next Tesla?

What EV stock can I buy instead of Tesla?

What EV stock can I buy instead of Tesla?

Who will dominate the EV market?

Who will dominate the EV market?

How do government policies impact the electric car market and stocks?

How do government policies impact the electric car market and stocks?

Are electric car stocks a good investment?

Are electric car stocks a good investment?

Do electric car companies pay dividends?

Do electric car companies pay dividends?

Top EV stocks to consider

Best Renewable Energy Stocks to Buy in 2026 and How to Invest in Them

Best Solar Energy Stocks to Buy in 2026 and How to Invest

Best Transportation Stocks for 2026 and How to Invest

Best Quantum Glass Battery Stocks to Buy in 2026

Key Data Points

1. Tesla: An industry leader

2. NIO: A Chinese SUV specialist

4. General Motors: An old name with a new approach

5. BYD: Holding the pole position in the EV industry

7. Volkswagen AG -- VW is committed to EV

9. Lucid Group --

10. VinFast Auto

How to invest in electric car stocks

What makes the electric car industry different from the traditional auto industry?

Pros and cons of investing in electric car stocks

Factors to consider before investing in electric car stocks

The future of the electric car industry

Related investing topics

FAQ

Key Data Points

Key Data Points