Electric cars -- commonly called electric vehicles or EVs -- are automobiles with engines powered by electricity rather than gas. 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.
Even though all the major car companies, including Ford (F -0.48%) and General Motors (GM -0.57%), are developing and/or manufacturing at least one model of electric car, they're not usually considered electric car companies because their primary products aren't electric. The best electric car company stocks are generally companies focused solely on electric cars rather than traditional automakers producing primarily gas-powered vehicles.
List of EV stocks
Electric car stocks on the map
| Company | Headquarters | Notable Models |
|---|---|---|
| Tesla (NASDAQ:TSLA) | Palo Alto, California | Model 3 and Model S sedans, Model X and Model Y crossovers |
| NIO (NYSE:NIO) | Shanghai, China |
ET9 sedan, ES8 and ES6 SUVs, EC6 crossover |
| Rivian (NASDAQ:RIVN) | Irvine, California | R1T truck, R1S SUV |
1. Tesla: An industry leader
Any list of electric car stocks should include the granddaddy of them all, Tesla. While BYD (BYDDY -3.77%) reported 2024 revenue of about $107 billion compared to the $89 billion that Tesla posted on the top line, Elon Musk's electric car company still demands respect as a force driving the EV industry forward after delivering almost 1.8 million vehicles in 2024. 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, and the company is building a new factory in Mexico.
Tesla has resorted to price cuts to sell vehicles this year as consumer demand faltered, a move that has hurt the bottom line. In 2024, Tesla's overall gross margin slipped by 39 basis points year over year to 17.9%, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin contracted slightly to 17% from 17.2% in 2023. The company is still profitable, but profits are trending lower.
In the first quarter of 2025, Tesla stock plunged 36% as investors balked at the company's weakening financials and expressed disapproval of Elon Musk's apparent distraction from leading the company due to his activities in Washington, D.C. But shares are still expensive by any measure. With a market capitalization currently topping $833 billion, 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
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 Li Automotive (LI -2.94%) and Xpeng(XPEV -5.73%) -- have increased investor interest in NIO.
NIO is benefitting from strong customer demand in China. After reporting 221,970 vehicle deliveries in 2024 -- a 38.7% increase from 2023 -- NIO reported continued growth in the first quarter of 2025, reporting 42,094 vehicle deliveries in Q1 2025, 40.1% higher than the same period in 2024.
As to be expected, total vehicle revenue also rose. In 2024, NIO posted vehicle revenue of about $7.98 billion, representing year-over-year growth of 18.2%. In addition, NIO expanded its gross profit margin from 5.5% in 2023 to 9.9% in 2024.
NIO further expanded its product line with the deliveries of the ET9 starting in March 2025, a vehicle that NIO characterized as "a flagship smart executive sedan," on its fourth quarter 2024 conference call.
3. Rivian: An up and comer
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 46,000 to 51,000 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.
Rivian is driving closer to profitability. In the fourth quarter of 2024, Rivian posted its first quarterly gross profit of $170 million. Rivian has $7.7 billion in cash on its balance sheet, 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
Rivian stock dove 43% through the first six months of 2024, but it has shown signs of recovering in the second half of the year. The company is valued at just over $14 billion, which doesn't seem expensive relative to sales. A lot will need to go right, though, for Rivian to deliver for investors.
Other EV companies
Other companies in the electric car space
Building a successful electric vehicle business is an expensive proposition, and the bankruptcies of Lordstown Motors in 2023 and Fisker in 2024 are good reminders that investing in this sector is inherently risky. After struggling with production issues, Lordstown and Fisker both ultimately filed for Chapter 11 bankruptcy.
If you want to diversify your portfolio exposure to the electric car sector and stay away from controversy, an alternative is to buy stock in any of these companies:
- QuantumScape (QS -2.77%): Maker of EV lithium batteries
- Blink Charging (BLNK 1.58%): Producer of electric car charging stations
- Hyliion (NYSE:HYLN): Manufacturer of EV drivetrains
- Luminar (LAZR -9.76%): Maker of autonomous driving technologies, such as Lidar
- Ballard Power Systems (BLDP 0.42%) and Plug Power (PLUG -8.09%): Developers of hydrogen fuel cell vehicle technologies
Yet another option is to buy shares of Lucid Group (LCID -4.92%). After producing 9,029 vehicles in 2024, the luxury electric car maker projects significant growth, forecasting 2025 production of approximately 20,000 vehicles. Lucid delivered 10,241 vehicles in 2024, a 71% increase over that which it delivered in 2023.
Lucid raised about $4.2 billion in additional capital in 2024, which will help cover its losses as it scales up production. Lucid stock is pricey, valued at $7.75 billion despite 2024 revenue of $808 million, so investors should tread carefully.
ETFs
Electric car ETFs
Investors seeking portfolio exposure to the electric car market who don't want to select individual stocks can buy shares in exchange-traded funds (ETFs). There are plenty of options when it comes to electric vehicle ETFs, including some that specialize in clean energy, which are often popular with ESG investors.
Fidelity Electric Vehicles and Future Transportation ETF (FDRV -3.64%) is a fairly small but focused choice and includes many of the stocks noted above. It also includes companies like Uber (UBER -1.34%), ON Semiconductor (ON -4.41%), and ChargePoint (CHPT -4.97%), adding to the diversification of the offering while remaining true to EV-enabling technologies. BYD is the largest holding at just more than 6.3%.
The Invesco WilderHill Clean Energy ETF (PBW -2.04%), which tracks the performance of the WilderHill Clean Energy Index, invests broadly in clean energy. Although no single stock comprises more than 2% of the fund's holdings, the ETF owns the stocks of plenty of electric car makers. The stocks of NIO, Tesla, and Rivian are all held by WilderHill. The fund also owns shares of Blink Charging, lithium-ion battery maker Albemarle (ALB -2.56%), and Plug Power.
The Global X Autonomous & Electric Vehicles ETF (DRIV -3.2%) invests in makers of electric and self-driving cars. But the fund mainly focuses on traditional automakers making forays into this space, such as Toyota (TM 0.52%), and large tech companies, including semiconductor powerhouse Nvidia (NVDA -7.03%) and Alphabet (GOOG -1.92%L) (GOOG -1.92%), which is developing autonomous vehicles.
Why the EV industry is different
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 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.
Related investing topics
Future of EVs
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.
FAQ
Investing in Electric Cars FAQ
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, Tesla is a good fit since it has already achieved profitability. 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.
