An updated edition of the March 21, 2025, article.
The auto industry is in the middle of a historic shift, and electric vehicles (EVs) are driving the change. While headlines today are filled with the talk of tariffs under the Trump administration, the long-term outlook for the EV industry looks bright. Global sales of electric vehicles are expected to grow 19.2% this year, per Autovista Group. It projects EV sales to hit 21.3 million units this year, with China leading the charge. Long-term expectations depict EVs could make up over 40% of global light vehicle sales by 2030, and more than 80% by 2040.
Till a few years ago, Tesla TSLA was the only name most people associated with EVs. It was the standout player, bringing innovation and real-world usability to electric cars. But now, the field is getting crowded. Traditional carmakers like General Motors GM, along with startups like Rivian Automotive RIVN and Chinese EV makers like BYD Co Ltd BYDDY and NIO Inc. NIO, are all forging ahead with significant investment and ambitious product plans. This push is driven by environmental concerns, tougher emissions rules and rapid progress in battery range and charging speed, making EVs more appealing drivers.
At the same time, autonomous vehicles (AVs) are gaining ground. Full self-driving cars aren’t ready for the mainstream yet, but big steps are being made. Tech leaders like Alphabet’s GOOGL Waymo and other automakers are investing heavily in AV tech. These vehicles could make roads safer by reducing accidents caused by human error, while also easing traffic congestion. With rapid advances in artificial intelligence, autonomous driving is steadily inching closer to everyday use. The AV market is expected to grow from nearly $48 billion in 2025 to more than $133 billion by 2030.
This dual transformation — electrification and automation — is creating major investment opportunities. EVs and AVs are no longer concepts of the future; they’re shaping the present and redefining what mobility looks like. For investors, this space offers growth, innovation and long-term potential. 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 add BYD, Rivian and NIO to their watchlist.
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Rivian went public in 2021, and it was seen as one of the most exciting new names in the EV space. Based in California, the company started with two high-end models — the R1T pickup and the R1S SUV — aimed at adventure-seeking, premium buyers. But now, Rivian is preparing for its next big chapter — reaching a broader audience with more affordable vehicles.
The upcoming R2, a mid-size SUV expected in the first half of 2026, will start around $45,000 —well below the price tag of the R1 series. CEO RJ Scaringe believes the R2 lineup could be a game changer, pointing out that its material and production costs are roughly 50% lower than those of the R1. This cost efficiency is part of Rivian’s push toward sustained profitability, after reporting a positive gross profit for the second straight quarter in the January-March period. The company expects to post a modest gross profit for the full year.
One of Rivian’s biggest breakthroughs recently is its partnership with Volkswagen. The German automaker plans to invest up to $5.8 billion in Rivian and their joint venture by 2027. Rivian has already received $2.3 billion in funding from VW, with another $1 billion expected by the end of June. The collaboration will support Rivian’s next-generation electrical architecture and software, starting with the R2.
With its second-generation Rivian Autonomy platform, the company recently introduced a hands-free driving feature for highways—though it still requires driver supervision. Rivian is now focused on rapidly advancing toward more capable and truly autonomous driving features.
Beyond consumer vehicles, Rivian is gaining traction in the commercial segment. Its electric delivery vans, built for Amazon, have already delivered over a billion packages in the United States. And now, other businesses can purchase Rivian’s Commercial Vans directly through the company’s website. From premium pickups to mass-market SUVs and scalable delivery vans, Rivian’s story is evolving—and gaining momentum. RIVN stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NIO made its debut on the NYSE in 2018, entering the EV scene as one of China’s most promising startups. Fast forward to 2025, and the company is operating on a much bigger scale with an expanding lineup and bold ambitions to become a global EV powerhouse.
NIO's vehicle lineup includes ES6, ET5T, ES8, EC6, ES7, ET5, ET7, EP9, EVE, ET9 and EC7 models. In late March 2025, the company commenced delivery of the NIO ET9. But it’s not just the namesake brand driving growth anymore. NIO is branching out with two additional labels —ONVO, a mainstream, mass-market brand, and Firefly, which targets premium small cars.
ONVO’s first model, the L60, has already hit the market and is seeing a positive response. The brand’s second model, the L90, is scheduled for delivery in the third quarter of 2025, followed by the launch of a third ONVO vehicle in the fourth quarter. Firefly’s first model commenced deliveries last month. NIO expects deliveries to double in 2025, fueled by new model launches and brand expansion.
One of NIO’s standout features is its battery swap technology. With more than 3,200 swap stations already deployed, NIO is leading this space. Its recent deal with CATL to build the world’s largest battery swap network marks a big step forward.Financially, NIO isn’t profitable yet—but it's moving in the right direction. The company aims to break even by the fourth quarter of 2025, driven by rising sales volumes, cost optimization, and improving vehicle margins. In fact, margins of the NIO brand are projected to reach 20% this year.
With new brands, growing sales, and tech investments, NIO is steadily expanding its presence in the EV space. While challenges remain on the path to profitability, the company’s evolving strategy shows it’s not standing still in a competitive market. NIO stock currently carries a Zacks Rank #3 (Hold).
BYD has quietly transformed itself from a local Chinese automaker into a global electric vehicle heavyweight—and it's doing so with remarkable speed. Back in March 2022, the company made a bold move. It stopped producing traditional gasoline-only cars entirely, pivoting all its efforts to new energy vehicles (NEVs), which include both plug-in hybrids and battery electric vehicles. The bet is paying off.
In recent years, BYD has emerged as Tesla’s fiercest rival. In fact, it briefly outsold Tesla in the fourth quarter of 2023 and again matched that feat in 2024. In the first quarter of 2025, BYD pulled ahead with over 416,000 battery electric vehicle deliveries — well above Tesla’s 336,000. That makes it the world’s top-selling EV brand for the second quarter in a row.
One of BYD’s biggest advantages is its deep vertical integration. The company controls everything—from batteries and semiconductors to full vehicle assembly. This allows it to keep costs low in today’s competitive, price-sensitive EV market. Its Blade Battery tech and the newly launched “Super e-Platform” push the limits of EV performance, promising fast charging and long range. BYD claims its new battery setup can add about 400 kilometers (roughly 249 miles) of range in just five minutes of charging.
Its vehicle lineup is just as wide-ranging—from the budget-friendly Seagull to high-end Yangwang models. The popular Song and Qin series continue to drive domestic demand. Meanwhile, BYD is making inroads on the autonomous front with its new “God’s Eye” driver-assist system, designed to offer smart safety tech without premium pricing.
BYD is building plants in Brazil, Hungary, Thailand, and Turkey, while expanding its sales into markets such as Germany and Australia. With a goal to double overseas sales to over 800,000 units this year, BYD is no longer just a Chinese success story—it’s a global EV contender on the rise. BYDDY stock currently carries a Zacks Rank #3.
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