Electric Car Stocks: A Growing Industry
Electric cars, also known as electric vehicles or EVs, are automobiles powered by electricity rather than gas. The electric car industry includes companies that manufacture electric cars and their components, such as batteries and autonomous vehicle systems. While major car companies like Ford and General Motors are developing electric cars, they’re not considered electric car companies because their primary products are gas-powered vehicles.
Key Players in the EV Industry
The best electric car company stocks are generally those focused solely on electric cars. Here are some of the leading companies:
- Tesla: An industry leader with a market capitalization over $833 billion. Tesla delivered almost 1.8 million vehicles in 2024, despite a tough macroeconomic backdrop.
- NIO: A Chinese SUV specialist that reported 221,970 vehicle deliveries in 2024, a 38.7% increase from 2023. NIO expanded its gross profit margin from 5.5% in 2023 to 9.9% in 2024.
- Rivian: An up-and-coming EV company that produced 51,579 vehicles in 2024 and projects 46,000 to 51,000 vehicles in 2025. Rivian posted its first quarterly gross profit of $170 million in the fourth quarter of 2024.
Other Companies in the Electric Car Space
Other companies worth considering include:
- QuantumScape: Maker of EV lithium batteries
- Blink Charging: Producer of electric car charging stations
- Hyliion: Manufacturer of EV drivetrains
- Luminar: Maker of autonomous driving technologies
- Lucid Group: Luxury electric car maker that produced 9,029 vehicles in 2024 and projects significant growth in 2025
Investing in Electric Car ETFs
Investors can also consider electric car ETFs, such as:
- Fidelity Electric Vehicles and Future Transportation ETF (FDRV): A focused ETF that includes companies like Tesla, NIO, and Rivian
- Invesco WilderHill Clean Energy ETF (PBW): A broader ETF that invests in clean energy, including electric car makers
- Global X Autonomous & Electric Vehicles ETF (DRIV): An ETF that invests in makers of electric and self-driving cars
The Future of the EV Industry
The electric car industry is different from the traditional automotive industry because it’s relatively new. Major automakers are adopting Tesla’s EV charging technology, which could become the standard in the U.S. Many companies are going public, and legacy automakers plan to release more electric vehicles over the next five years. Investing in this industry can be profitable, but it’s essential to minimize risk by diversifying your portfolio.
