Electric cars -- commonly known as electric vehicles or EVs -- are automobiles that rely on electricity stored in batteries for power rather than gasoline in internal combustion engines. Electric car stocks comprise companies primarily focused on manufacturing electric cars. Companies that manufacture the components used in electric cars -- such as batteries or autonomous vehicle systems -- can also be considered part of the electric car industry.
If you're interested in this industry, here are our favorite EV stocks to consider for your portfolio.
Top EV stocks to consider in 2026
1. Tesla
NASDAQ: TSLA
Key Data Points
Any list of electric car stocks should include Tesla, the granddaddy of them all. Commanding respect as a force driving the EV industry forward, it delivered more than 1.63 million vehicles in 2025.
With a market capitalization currently topping $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.
2. NIO
NYSE: NIO
Key Data Points
Chinese electric carmaker NIO has been publicly traded since September 2018, but initial public offerings (IPOs) of other Chinese electric carmakers have increased investor interest in NIO.
In 2025, NIO reported a 46.9% increase in vehicle deliveries and further expanded its product line with the ET9. It expects to do so again with the ES9 SUV planned for an April 2026 unveiling.
Constantly expanding its vehicle lineup and a leader in the Chinese EV market, NIO is a worthy investment option.
3. Rivian
NASDAQ: RIVN
Key Data Points
Rivian is taking a different approach than its EV peers by vertically integrating critical components, including electronics, the propulsion platform, and software.
Rivian reported vehicle deliveries of 42,284 in 2025, a slight year-over-decline due to a temporary pause of production lines at its plant in Illinois in preparation for the launch of production of its R2 model.
Although it's still incurring net losses, Rivian reported a gross profit of $144 million in 2025 compared to a gross loss of $1.2 billion in 2024.
Revenue
4. General Motors
Legacy automaker GM may not be a name that investors immediately recognize as an EV leader, but it's building momentum.
Paul Jacobson, the company's CFO, espoused optimism for EVs in GM'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."
Dedicated to rewarding shareholders, GM pays a modest dividend while also reinvesting in the company. As of March 2026, GM stock offered investors a 0.98% forward dividend yield.
5. BYD
OTC: BYDDY
Key Data Points
NASDAQ: LI
Key Data Points
Li Auto represents another Chinese EV leader. As of December 2025, the company had 548 retail stores and 561 servicing centers. Li Auto also helps customers keep their (electric) motors running, with 3,907 supercharging stations equipped with 21,651 charging stalls.
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) makes Li Auto well-positioned to withstand temporary market downturns while also allocating resources to reinvest in the business.
7. Volkswagen AG
OTC: VWAGY
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NYSE: F
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Pivoting from the aggressive EV initiative it implemented earlier this decade, Ford remains 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 is America’s best-selling full-size hybrid pickup. Similarly, Maverick Hybrid is the best-selling mid-size hybrid truck in the United States.
9. Lucid Group
NASDAQ: LCID
Key Data Points
An EV investment option since 2021, Lucid is taking a page from Tesla's playbook and catering to the luxury market before introducing more affordable EV models. Lucid targets production of the midsize EV, Lucid Cosmos ( an expected starting price under $50,000), in late 2026.
Another similarity with Tesla is Lucid's interest in robotaxis. Lucid intends to partner with Uber on bringing a robotaxi to market in 2026 with plans to accelerate production in the next several years.
The company is still unprofitable, but those comfortable with a higher-risk investment may be rewarded with Lucid stock if the company drives in the right direction.
10. VinFast Auto
VinFast is a Vietnamese company that's the top car seller in Vietnam, though it's committed to expanding its global presence. The company currently has more than 380 showrooms -- 102 of which are located in markets outside of Vietnam.
VinFast reported deliveries of 196,919 EVs globally in 2025, a 102% year-over-year increase. And though it's still early innings, the company is progressing towards profitability. In 2025, it reported a gross margin of negative 42.5%, improving over the negative 57.4% in 2024.
For those seeking an EV growth opportunity, VinFast is a stock to consider, though investors must be comfortable with more risk.
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 now developing or producing an EV.
Start-up EV makers can compete fairly well with traditional automakers for electric-car market share, making it difficult to predict 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 offer significant growth potential. 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 grow significantly in the years to come.
Cons:
- If the economy enters a downturn, 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, eliminating these incentives could reduce customer demand.
Factors to consider before investing in electric car stocks
Investors must be flexible in their approach to evaluating potential EV investments. Regarding legacy carmakers, investors should verify that the companies' investments are proving profitable by using the earnings per share (EPS) metric and the price-to-earnings (P/E) ratio to evaluate the stocks' price tags.
For less-established companies, investors will want to verify revenue is growing. Since these companies are likely to incur net losses, the P/E ratio is useless; investors should use the P/S ratio to gauge the stocks' valuations.
The future of the electric car industry
With major automakers adopting Tesla's EV charging technology, it's likely to become the standard in the U.S., simplifying EV purchasing and charging, and helping drive industry growth.
Investing in this highly competitive, fast-growing industry is likely to be profitable, but it's important to take steps to minimize 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.
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