10 Best EV Stocks to Buy Heading into 2026

Industry Overview - The global rise of electric vehicles (EVs) has slowed, impacting employment, industry planning, and climate targets, with road transportation contributing about one-fifth of global carbon dioxide emissions [2] - Adoption of EVs is crucial for achieving net-zero emissions, but momentum has waned due to reduced government incentives, high EV costs, lagging charging infrastructure, and fading policy support [2] - In Europe, lawmakers are reconsidering a strict 2035 ban on new combustion-engine vehicles, acknowledging that the transition to zero-emission transportation will take longer than expected [2] Sales and Market Performance - Global sales of EVs and plug-in hybrids increased by 26% in 2024, down from 34% the previous year, with China accounting for almost two-thirds of the 17.6 million EVs sold globally [3] - In the United States, EV sales rose by 12% in the first three quarters of 2025 despite subsidy withdrawals, while sales in Europe increased by 26% from January to October 2025, although still below emissions standards requirements [3] - All-electric vehicles were approximately 30% more expensive than similar gasoline vehicles in Europe and 27% more costly in the United States in 2024 [3] Industry Adjustments - The slowdown in EV adoption has led legacy automakers to reduce their anticipated 2030 EV sales by over 5 million units to 21.7 million [4] - Lawmakers have delayed penalties for environmental violations and allowed the continued sale of combustion-engine and hybrid vehicles, risking a postponed transition to decarbonization and urban air pollution reductions [4] - Employment in the EV sector is affected as EV production requires fewer workers compared to traditional vehicle manufacturing [4] Investment Opportunities - A list of the 10 best EV stocks to buy heading into 2026 has been compiled, focusing on stocks with analyst upside potential of over 20% as of December 17 [7] - The methodology involved analyzing ETFs and online rankings to identify promising EV stocks, with a focus on hedge fund holdings to enhance investment performance [8] Company Highlights - Blue Bird Corporation (NASDAQ:BLBD): Analysts' upside potential is 24.83%, with 31 hedge fund holders. The company reported Q1 net revenue of $409 million, a 17% year-on-year increase, and a 64% rise in adjusted EBITDA to $68 million [9][11] - Li Auto Inc. (NASDAQ:LI): Analysts' upside potential is 29.47%, with 14 hedge fund holders. The company faced a 36% revenue drop in the last quarter, attributed to higher operating costs and a decline in total deliveries [14][15]