Top 10 EV (Electric Vehicle) Stocks to Buy in 2025

The electric vehicle (EV) market has been one of the most hyped sectors in recent years. With governments pushing for cleaner energy and automakers racing to roll out new models, EV stocks have seen both massive gains and painful crashes. The reality is, this sector moves fast, and if you’re not paying attention to key trends, you can get left behind.

EV stocks aren’t just about Tesla anymore. New players are entering the market, while legacy automakers are adapting. Some companies will dominate, while others will struggle with cash flow, production challenges, and intense competition. If you’re looking for trading opportunities, EV stocks offer strong momentum—both up and down.

Here are 10 EV stocks to watch in 2025. Each has its own story, risks, and potential for big moves.

Top 10 EV Stocks for 2025

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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Tesla Inc. (NASDAQ: TSLA)

Tesla continues to dominate the EV sector, but its latest earnings report disappointed. Automotive revenue fell 8%, and price cuts have hurt margins. The company is shifting focus toward AI and autonomous driving, with plans to launch a robotaxi service in 2025.

No stock moves up forever. Traders need to stay sharp on market conditions and Tesla’s financials before jumping in. If you’re wondering whether it’s worth buying right now, look at the numbers and the trends. Here’s a breakdown of whether Tesla stock is a good buy.

Here’s what I was thinking in 2020…

Tesla still has strong brand power, but it’s facing tougher competition. While its energy business saw 113% revenue growth, its core car sales are slowing. Traders should watch for volatility as Musk pushes the company toward AI-driven services.

Rivian Automotive Inc. (NASDAQ: RIVN)

Rivian has struggled with high costs, but it’s looking to turn things around. The company secured a $6.6 billion loan from the U.S. Department of Energy to build a new facility in Georgia, which could help it scale production.

Rivian delivered over 51,000 vehicles in 2024, and its upcoming R2 lineup aims to bring in more customers. If the company can manage its costs and improve margins, it could see momentum.

Lucid Group Inc. (NASDAQ: LCID)

Lucid has struggled with production delays and cash burn, but it still has backing from Saudi Arabia’s Public Investment Fund, which owns 59% of the company.

Lucid’s focus on high-end luxury EVs limits its market size, but if it can scale efficiently, it has potential. However, with sovereign wealth funds taking heavy losses on their investment, there’s pressure for the company to prove itself in 2025.

NIO Inc. (NYSE: NIO)

NIO has seen strong vehicle deliveries, with 73% growth in December alone. Its battery-swapping technology gives it an edge in China, and it continues to expand its charging infrastructure.

However, NIO remains unprofitable and continues to burn cash. If it can improve margins and control costs, it could gain momentum, but dilution risk is a concern for traders.

XPeng Inc. (NYSE: XPEV)

XPeng has been aggressive with autonomous driving technology, positioning itself as a leader in China’s smart EV sector. Volkswagen recently invested in XPeng, and the two companies are working on new models for 2026.

This partnership could be a major growth driver. However, competition in China’s EV market is fierce, and XPeng needs to prove it can maintain profitability as it scales.

Li Auto Inc. (NASDAQ: LI)

Li Auto has outperformed many of its Chinese EV rivals by focusing on plug-in hybrid SUVs. The company is profitable, has been expanding its charging network, and continues to see strong vehicle sales.

With more affordable models rolling out, Li Auto has a chance to capture even more market share. While China’s economic slowdown remains a risk, Li’s strong financials make it a more stable EV play.

Nikola Corp. (NASDAQ: NKLA)

Nikola has been in trouble for a while, and bankruptcy speculation is growing. The company has been quiet about production numbers, and reports suggest its CEO is out.

While some struggling EV stocks have managed to turn things around, Nikola is at a critical point. Traders should approach with caution—bankruptcies can create short-term trading spikes, but long-term survival is questionable.

Canoo Inc. (NASDAQ: GOEV)

Canoo just filed for Chapter 7 bankruptcy, meaning it’s liquidating assets. The company failed to secure funding from the Department of Energy and couldn’t find other financial support.

Bankruptcies don’t always mean the end—Hertz filed for bankruptcy in 2020 and later surged. However, Canoo’s situation looks more dire. Any trading momentum will likely be short-lived.

Ferrari (NYSE: RACE)

Ferrari is launching its first full EV in 2025. Unlike other automakers struggling with EV margins, Ferrari’s pricing power allows it to sell high-end models at a premium.

With hybrids already making up 55% of its sales, Ferrari is proving it can adapt while keeping profitability high. For traders, this isn’t a traditional EV stock, but it’s one of the few in the space with strong margins and stable demand.

Volkswagen (OTCPK: VWAGY)

Volkswagen is restructuring to cut costs and compete with Chinese EV makers. The company is even considering letting Chinese partners invest in its German plants.

With luxury brands like Porsche and Lamborghini under its umbrella, Volkswagen has strong assets. If it can execute its cost-cutting plan and expand its China partnerships, it could be undervalued at current levels.

Investing in EV Stocks: What to Consider

The EV industry is fast-moving, and not every company will make it long term. While some businesses are expanding production and improving profitability, others are burning cash and relying on loans to stay afloat. Traders should focus on balance sheets, revenue trends, and upcoming product launches when evaluating EV stocks. A flashy new pickup truck might generate hype, but if a company can’t control costs or deliver vehicles efficiently, it can be a short-lived success.

Momentum matters in the stock market, and EV stocks are some of the most volatile growth stocks out there. Strong performance can attract more investors, but negative news can send shares tumbling fast. Keeping up with financial markets, analyst reports, and stock advisor recommendations is key to spotting opportunities before they become obvious to the crowd. I’ve seen traders chase the hype without understanding the financials—those who do their own research and set clear risk levels tend to fare better.

Banking on long-term returns from EV stocks is risky, as competition is fierce, and government policies shift. EV makers rely on subsidies, tax credits, and infrastructure spending to stay competitive. Investors should watch for any changes that could impact affordability, just as they would with factors affecting credit cards, student loans, or interest rates. When policies shift, the entire sector can move, creating both challenges and opportunities.

Big EV stocks get the attention, but smaller players can bring big percentage gains. Penny stocks in the EV sector are risky, but some traders look for low-priced stocks with growth potential. If you’re open to high-risk, high-reward plays, it’s worth knowing what’s out there. Check out this list of the best EV penny stocks.

How to Invest in EV ETFs

For those who don’t want to pick individual EV stocks, exchange-traded funds (ETFs) offer exposure to the sector while spreading risk. These funds track a basket of EV-related stocks, including automakers, battery producers, and charging infrastructure companies. Instead of trying to time the market on a single stock, ETFs let investors benefit from the broader industry’s performance.

When choosing an EV ETF, it’s important to analyze its holdings, fees, and overall strategy. Some funds focus on high-growth stocks, while others include established automakers with diversified product lines. Reading through analyst research, stock market reviews, and investment newsletters can help investors understand where different ETFs fit in a portfolio. I always advise traders to check the fund’s disclosure policy to see how it selects companies and whether it aligns with their risk tolerance.

Traders looking for short-term moves should be aware that ETFs won’t move as aggressively as individual stocks. While they reduce the risk of betting on a single company, they also limit upside potential. That’s why I focus on trading individual stocks instead of ETFs, but for those with a longer investment horizon, ETFs can be a way to participate in the EV market without picking winners and losers.

EV ETFs give exposure to the sector without betting on one company. But not all ETFs are the same—some focus on big names, while others include smaller or international stocks. Before picking one, look at the holdings and fees. If you’d rather trade individual stocks, there are strong EV plays to consider. Here’s a list of top EV stocks to watch.

Key Takeaways

• Tesla is still dominant, but price cuts are hurting margins.
• Rivian and Lucid are struggling with costs but have potential catalysts.
• NIO, XPeng, and Li Auto are growing in China, but financial risks remain.
• Nikola is in trouble—bankruptcy speculation is high. Canoo is already liquidating assets.
• Ferrari and Volkswagen offer different EV exposure, with more stable financials.

This is a market tailor-made for traders who are prepared. EV stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this possibly historic bull market.

If you want to know what I’m looking for—check out my free webinar here!

Frequently Asked Questions

Are EV stocks a good investment for beginners?

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EV stocks can be tempting for beginners, but they come with a lot of volatility. Many companies are still unprofitable, relying on loans and outside funding to survive. Unlike traditional automakers, which have steady revenue streams, most EV startups are in a high-risk, high-reward phase.

For beginners, it’s important to focus on risk management. Reading analyst opinions, stock market articles, and investor guidance can help traders understand what’s driving share prices. Some brokers offer research tools and portfolio recommendations, but ultimately, it’s up to each trader to decide if they’re comfortable with the risks. From my experience teaching thousands of students, those who take the time to learn before trading are more likely to succeed.

How do government policies impact EV stock performance?

Government policies can make or break EV stocks. Tax credits, subsidies, and infrastructure spending help lower costs for consumers and drive demand for EV products. At the same time, changing regulations or reduced incentives can hurt sales and drag down stock performance.

Traders should follow news and policy updates closely. When new legislation is passed, analysts quickly adjust their recommendations, and the market reacts. A single announcement about tax credits or emissions regulations can send stocks surging or crashing. I’ve seen traders ignore policy shifts and end up blindsided—it’s a mistake you can’t afford to make in a fast-moving sector like this.

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Do dividend-paying EV stocks exist?

Most EV stocks don’t pay dividends because they reinvest revenue into growth. Unlike legacy automakers, which generate stable cash flow, many EV companies are still scaling production and burning through capital. Investors looking for dividend income typically focus on more established players in the auto industry.

Volkswagen, for example, offers dividends, as do some auto suppliers involved in EV technology. Checking company financials and broker research reports can help investors find dividend-paying options. While dividends can provide steady returns, they’re not the main focus in a high-growth sector like EVs. For traders, momentum and price action matter far more than quarterly payouts.

What role does financial analysis play in EV stock trading?

Financial analysis is critical when trading EV stocks because it helps traders separate hype from real profitability. Many EV companies generate exciting news and content about their latest models, but their balance sheets tell the real story. Understanding revenue trends, cash burn, and debt levels ensures traders make informed decisions rather than relying on speculation or bad advice.

Where can traders find reliable EV stock information?

Traders can find valuable EV stock insights through finance podcasts, analyst reports, and independent market research. While social media and news headlines generate buzz, it’s important to verify claims and check a company’s official disclosures to understand shareholder rights. Following multiple sources of content allows traders to compare opinions and develop their own strategy rather than blindly following the crowd.