Top EV Stocks Worth Considering in 2025 Besides Tesla

木头姐正在出售特斯拉股票,转而购买这支“七巨头”股票
Published on: Dec 28, 2024
Author: Caroline Kong

Major stock indexes including NASDAQ and the S&P 500 are hovering near record highs amid optimism about strong U.S. economic growth during Trump’s second term. In contrast, the dismal performance of electric vehicle (EV) stocks seems to have been magnified. Despite some notable setbacks in U.S. production schedules or product launches, overall, the forecast for EV growth in the New Year remains very strong.

According to Gartner’s analysis, the number of electric vehicles will grow by 33% in 2025, and the total number of electric cars and trucks will reach 85 million. This is mainly due to the rapid adoption of electric vehicles in China (+ 58%) and Europe (+ 24%), which according to Gartner forecasts will account for 82% of the total electric vehicle market growth next year.

For investors looking to profit from the electric vehicle stocks and the electric vehicle industry, the top EV stocks to buy in 2025 include:

Tesla Inc. (TSLA)

Market capitalization: $1.2 trillion

Tesla, as the global leader in the electric vehicle industry, has a huge market share and is expected to deliver nearly 1.8 million vehicles throughout 2024. What’s more, due to Elon Musk’s close relationship with President-elect Donald Trump, post-election momentum in the United States has pushed Tesla shares up about 50% this year, while other EV stocks continue to struggle. At a time when competitors are still figuring out the economics of electric vehicles, Tesla, as a solidly profitable operator, remains the top EV stocks to buy for investors heading into 2025.

BYD Co. Ltd. (BYDDY)

Market value: $106 billion

When it comes to EV stocks, many people think of Tesla first, but BYD is also the world’s top electric car manufacturer. It has produced more than 8 million electric vehicles of various models in the past few years, and is currently selling more than 500,000 vehicles a month, with annual sales likely to reach 6 million in the future. What’s more, the Chinese company’s local appeal against the backdrop of tariff and trade policy uncertainty ensures that the stock can thrive in 2025, as domestic demand in China remains strong.

Li Auto Inc. (LI)

Market value: $24 billion

While nowhere near the size of Tesla and BYD, and currently burning through cash while aggressively investing in growth, Li is still the EV stock to watch because of its huge growth potential. In November 2024, the company delivered 48,740 vehicles, an increase of 18.8%, and is now on track to reach its goal of 500,000 vehicles for the full year. Considering that the company’s total deliveries in 2023 are only about 373,000 units, that means the company has maintained a growth rate of about 35% even as other EV stocks have struggled. The company maintains strong appeal in the high-end market, with the Li AD Max accounting for more than 80% of orders in China for models priced above $55,000. There is no denying that Li stock is underperforming in 2024, but the sales figures are quite encouraging for investors who dare to take on more risk.

Nio Inc. (NIO)

Market value: $10 billion

Nio delivered a record 61,855 electric vehicles in the third quarter and expects to deliver as many as 75,000 electric vehicles in the fourth quarter. Compared to other companies, 300,000 annual deliveries may not seem like a lot, but considering that the company only delivered about half that number in 2023, the company’s growth prospects are worth looking forward to. What’s more, like BYD and Li Auto, NIO is also a Chinese company with local appeal in the world’s fastest-growing electric vehicle market. That means its stock has some additional growth momentum in 2025 that Western EV stocks may lack of.

Albemarle Corp. (ALB)

Market value: $12 billion

In 2025, in addition to electric vehicle manufacturers, it would be wise to invest in the shares of the largest and most famous lithium producers through Albemarle. The company is one of the world’s leading lithium miners with a production capacity of 225,000 tonnes and plans to roughly triple that by 2030. Lithium’s supply chain challenges are tricky, and Trump’s trade policies could complicate the situation in 2025. However, as a commodity stock, Albemarle’s profits depend in part on pricing trends across the market, and any shortages or supply bottlenecks will naturally push up lithium prices, which will naturally benefit the company’s shareholders. Even if the rattling over trade policy makes little difference in the short term, investors can bet on shares of this top supplier of raw materials for electric vehicles.

If you are interested in EV stocks, please pay close attention to First Phosphate (CSE: PHOS) (FSE: KD0). This is the only publicly listed company that is fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (“LFP”) battery industry. LFP batteries operate similarly to other lithium-ion batteries. They have the advantage of being non-toxic, having superior fire safety, longer cycle life and lower cost. The company is the Building Block for a North American LFP Battery Ecosystem, the company holds a total of 1,500+ sq. km of royalty-free land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada consisting of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid high concentrations of harmful elements.

Disclaimer: NAI is being compensated for this content. Materials contained in this content are for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this content should be construed as an offer, solicitation or recommendation to buy or sell products or securities.

Electric Cars In-Depth Analysis Lithium Phosphate