Top EV and AV Stocks to Invest in Now – I wish I had more to offer

The automotive industry is undergoing a massive transformation, with electric vehicles (EVs) leading the charge. For years, it seemed that Tesla TSLA was the only automaker that was playing at the forefront of the EV phenomenon and taking the concept of green vehicles seriously from a real-world functionality standpoint.

But now the landscape is shifting, with legacy automakers and new startups alike making aggressive moves into the EV market, fueled by climate concerns, stricter fuel regulations and rapid advancements in battery and charging technology. With longer ranges and faster charging times, EVs are becoming a mainstream choice for consumers looking for sustainable and cost-effective transportation.

And it’s not just EVs shaking up the industry. The rise of autonomous vehicles (AVs) is another major trend reshaping mobility. While fully self-driving cars aren’t quite ready for prime time, companies are making significant strides. Big names in tech and auto manufacturing are pouring billions into autonomous driving technology, with Alphabet’s GOOGL Waymo leading the pack.

The promise of AVs goes beyond convenience — by reducing human error, they could dramatically cut down on road accidents and improve traffic efficiency. As artificial intelligence and machine learning continue to evolve, the dream of truly autonomous transportation is inching closer to reality.

With consumer demand rising for greener and smarter mobility solutions, there is huge investment potential in EV and AV companies. S&P Global Mobility projects a 30% jump in global EV sales in 2025, with China leading the charge. The autonomous vehicle market is expected to grow from nearly $48 billion in 2025 to more than $133 billion by 2030.

The opportunity is clear—EVs and AVs aren’t just the future of transportation; they’re one of the most exciting investment stories of today. If you want to capitalize on it, our Electric Vehicles & Autonomous Driving Screen will help you to spot high-potential stocks in this space. Interested investors should consider adding BYD Co Ltd BYDDY, General Motors GM and XPeng XPEV to their portfolio.

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BYD is China’s largest EV maker and a dominant player in the global EV market. In March 2022, it stopped producing gasoline-only cars and focused entirely on new energy vehicles (NEVs), including plug-in hybrids (PHEVs) and battery electric vehicles. This strategy paid off, as BYD surpassed Tesla in global EV sales for the first time in the fourth quarter of 2023 and repeated the feat in the final quarter of 2024. Last year, BYD hit a record by selling over 4.27 million NEVs. Of these, 1.76 million were fully electric vehicles, representing a 41% year-over-year jump. BYD has proven to be a force to reckon with, leveraging its cost-effective battery technology and vertically integrated operations.

Its vehicle lineup serves a broad customer base, from budget-friendly models like the Seagull to high-end offerings under the Yangwang brand. Its hybrid and Ev models, such as the Song and Qin series, remain top sellers in China. The launch of the DM 5.0 hybrid system and e-Platform 3.0 reinforces BYD’s commitment to affordability and efficiency. The company’s international growth is strong, with overseas NEV sales jumping 72% to more than 417,000 units. BYD is also innovating in battery and charging technology. It claims that its new “Super e-Platform” enables 400 km (249 miles) of range with just five minutes of charging.

The company is also making strides in autonomous driving with its “God’s Eye” smart driving system, introduced last month. This advanced driver-assistance technology offers enhanced safety features at a competitive cost. Chairman Wang Chuanfu confirmed that all BYD models, including the Seagull, Qin Plus DM-i, and Seal 05 DM-i, will be equipped with this intelligent system. Additionally, BYD is integrating AI from DeepSeek to further enhance its most advanced driver-assist capabilities. The stock currently carries a Zacks Rank #2 (Buy).

General Motors, a U.S.-based legacy automaker, is making bold moves in the EV space. It has adopted an “all-in” electrification strategy, focusing on batteries, software, vehicle integration, manufacturing and customer experience. Its modular battery platform, formerly known as Ultium, remains a key pillar of its EV transition, despite the company’s decision to drop the Ultium name.

GM ranked as the second best-selling EV maker in the United States during the second half of 2024. It sold 114,000 EVs last year, marking a 50% increase from 2023. Its diverse lineup—including the Chevy Equinox EV, Cadillac Lyriq, and GMC Hummer EV—helped solidify its position. The company plans to expand further with models like the Escalade IQ, OPTIQ, and VISTIQ. In the fourth quarter of 2024, GM’s EV portfolio became “variable profit positive” due to improved production efficiency, lower material costs and new model launches. The company produced 189,000 EVs last year and aims for 300,000 in 2025. It also expects to cut EV-related losses by $2 billion in 2025. Strategic supply chain deals with Vianode, Lithium Americas, LG Chemical, POSCO Chemical and Livent support its electrification goals.

GM is also restructuring its autonomous driving efforts. It fully acquired Cruise and plans to integrate its technology into Super Cruise, which enables hands-free driving on 750,000 miles of North American roads. A recent deal with NVIDIA will further enhance GM’s driver-assistance systems. GM will incorporate NVIDIA DRIVE AGX into its next-generation vehicles, enhancing in-car safety and driver-assistance capabilities. The stock currently carries a Zacks Rank #2.

XPeng is one of the leading innovators in China’s EV market, focusing on smart technology and autonomous driving. Its XNGP driver-assistance system provides near-autonomous driving in cities and highways, giving XPeng a competitive edge. XPeng is also ramping up efforts to expand globally, as part of its “go-global 2.0 strategy.” By the end of 2024, it was present in 30 countries and regions and aims to reach 60 by 2025. The company expects half of its sales to come from overseas within a decade.

In 2024, XPeng delivered 190,068 vehicles, reflecting 34% year-over-year growth. Its lineup includes the P7, P5, G6, G9, and X9 models. The G6 SUV, built on the SEPA 2.0 platform, offers long-range and fast charging at an affordable price. XPeng also introduced X9, a futuristic electric van targeting families.To capture budget-conscious buyers, XPeng launched the MONA brand last year, with the M03 hatchback coupe priced at around $16,813, making it the company’s most affordable model. The Mona M03 Max, featuring advanced smart driving capabilities, will debut in May 2025.

XPeng is also advancing in autonomous driving and AI. It targets Level 4 autonomy in China this year. It will also begin testing self-driving systems internationally this year, with plans to introduce global self-driving cars by 2026. In November 2024, it introduced the XPENG Kunpeng Super Electric System, Turing AI Intelligent Driving System, and an AI Robot. At CES 2025, XPeng showcased its AeroHT Land Aircraft Carrier, a futuristic six-wheel EV designed to launch an electric aircraft, highlighting its bold vision for transportation. The stock currently carries a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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