Electric cars -- commonly known as electric vehicles or EVs -- are automobiles that rely on electricity stored in batteries for power instead of gas used 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.
Many of the major car companies, like Ford (F -0.92%) are developing and/or manufacturing at least one model of electric car. The best electric car company stocks range from companies solely focused solely on electric cars to traditional automakers that are expanding their lineups to include electric cars.
Electric car stocks on the map
1. Tesla: An industry leader
NASDAQ: TSLA
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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 720,800 vehicles in the first two quarters of 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 tough macroeconomic backdrop, Tesla continues to aggressively expand production. Production is currently ramping up at Tesla's factories in Texas and Germany.
Tesla has resorted to price cuts to sell vehicles this year as consumer demand faltered, a move that has hurt the bottom line. In the second quarter of 2025, Tesla's overall gross margin slipped by 71 basis points year over year to 17.2%. Still, it succeeded in expanding its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, which contracted to 15.1% from 14.4% in Q2 2024. The company is still profitable, but profits are trending lower.
With a market capitalization currently topping $1.2 trillion, Tesla stock trades at lofty price-to-earnings and price-to-sales ratios. The valuation makes the stock risky, but there's no denying the company is a leader in the electric vehicle industry.
2. NIO: A Chinese SUV specialist
NYSE: NIO
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3. Rivian: This EV maker keeps trucking along
NASDAQ: RIVN
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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 managed to produce more than 1,000 vehicles in 2021, a tiny number compared to Tesla and other large automakers. Deliveries equaled 51,579 vehicles in 2024, and the company projects vehicle deliveries of 40,000 to 46,000 vehicles in 2025. The delivery outlook may be lower than 2024, yet it reflects the company's plan to pause production lines at its plant in Illinois for one month in late 2025 in preparation for the launch of production of the R2 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 unprofitable, Rivian had $7.5 billion in cash on its balance sheet as of June 30, 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.
Revenue
4. General Motors: An old name with a new approach
NYSE: GM
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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. In GM's second quarter 2025 letter to shareholders, for example, GM CEO Mary Barra said that despite slower EV industry growth, the company believes the long-term future involves profitable electric vehicle production.
The company has built serious momentum towards reimagining itself as a company steering towards electric vehicle popularity among drivers. In Q2 2025, GM announced that it had maintained second place in EV sales in the U.S.; Chevrolet ascended to the second most-popular selling U.S. EV brand.
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 September 2025, GM stock provided investors with a 1% forward-yielding dividend.
5. BYD: Holding the pole position in the EV industry
OTC: BYDDY
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Since BYD's EVs aren't visible on America's highways and byways, investors may be less familiar with the Chinese conglomerate despite its market dominance. According to research from The Motley Fool, BYD is the global leader in EV production. In 2024, BYD manufactured 4,036,538 EVs -- battery EVs and plug-in hybrid EVs -- miles ahead of Tesla, which produced 1,787,944
EVs. Investors who follow Warren Buffett, however, may recognize BYD as the company with the only EV exposure in the Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) portfolio.
BYD Company operates other businesses such as monorails and electronics, but it's the EV business that is driving significant growth. In the first quarter of 2025, BYD reported a 36.4% year-over-year increase in operating revenue that management largely attributed to growth in the EV business.
With its strong industry position, it seems highly unlikely that a competitor will overtake BYD as the dominant global EV business anytime soon. For investors seeking a more conservative EV stock opportunity, BYD deserves serious consideration.
6. Li Auto: An up-and-coming Chinese brand
NASDAQ: LI
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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 August 2025, the company had 543 retail stores in 156 cities and 536 servicing centers and Li Auto-authorized body and paint shops. Helping customers to keep their (electric) motors running, Li Auto also has 3,190 supercharging stations equipped with 17,597 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 plans on launching a more affordable battery electric SUV, Li i6, in September 2025.
While many pure-play EV companies are struggling to achieve profitability, Li Auto is racing ahead. In the second quarter of 2025, Li Auto reported net income of $153.1 million, a green flag for investors seeking EV companies that are less speculative options. Its sizable cash position of $14.9 billion (as of June 30, 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
OTC: VWAGY
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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 the first half of 2025, Volkswagen Group reported a 47% year-over-year increase in 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 (QS -11.05%), 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.
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.
What makes the electric car industry different?
The electric car industry differs from the traditional automotive industry because it is so new. 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.
How to invest in electric car stocks
For investors charged up about powering their portfolios with an 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 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.
Related investing topics
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 ETF.
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