Despite some uncertainty, analysts remain optimistic about the EV industry’s growth, fueled by strong consumer demand, technological advancements, and an expanding charging network. Moreover, EV manufacturers are broadening their offerings, contributing to a more competitive and diversified EV market.
Hence, as manufacturers accelerate the EV revolution, investing in strong electric vehicle stocks like Tesla, Inc. (TSLA), General Motors Company (GM), and BYD Company Limited (BYDDY) could offer solid returns.
In 2024, the U.S. recorded a milestone with 1.3 million EVs sold, and sales are expected to continue rising. By 2025, one in four vehicles sold in the U.S. will be electric, reflecting growing consumer demand. China’s impressive growth is further strengthening the global EV market, with sales anticipated to rise by at least 17% in 2025, surpassing 20 million units.
Notably, new CO₂ emission regulations in Europe are pushing automakers to ramp up EV production, fostering a stable and growing market for electric vehicles. While U.S. policies may slow EV expansion, sales are still forecast to grow by 16% in 2025, demonstrating resilience.
Given these conducive trends, let’s now dive into the fundamentals of the Auto & Vehicle Manufacturers stocks highlighted above, starting with number three.
Stock #3: Tesla, Inc. (TSLA)
TSLA designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems internationally. It operates in two segments, Automotive, and Energy Generation and Storage.
In terms of the trailing-12-month Capex / Sales, TSLA’s 11.19% is 287.3% higher than the 2.89% industry average. Its 10.60% trailing-12-month Return on Total Assets is 170.1% higher than the 3.92% industry average. Furthermore, its 13.07% trailing-12-month net income margin is 200.7% higher than the 4.35% industry average.
In the fiscal third quarter ended September 30, 2024, TSLA’s total revenue increased 7.8% year-over-year to $25.18 billion. Similarly, its total gross profit grew 19.6% from the year-ago value to $5 billion. The company’s net income and EPS attributable to common stockholders were $2.17 billion and $0.72, up 16.9% and 9.1%, respectively, over the prior-year quarter.
Analysts expect TSLA’s EPS and revenue for the quarter ended December 31, 2024, to increase 8.4% and 7.8% year-over-year to $0.77 and $27.14 billion, respectively. TSLA’s stock has gained 136.6% over the past nine months to close the last trading session at $398.09.
TSLA’s positive outlook is reflected in its POWR Ratings. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Sentiment and Quality. It is ranked #34 out of 48 stocks in the Auto & Vehicle Manufacturers industry. Click here to see TSLA’s Growth, Value, Momentum, and Stability ratings.
Stock #2: General Motors Company (GM)
GM designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provides software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names.
On December 2, 2024, GM and LG Energy Solution extended their battery partnership to develop prismatic cells, optimizing EV performance, safety, and cost while diversifying GM’s battery supply chain.
In terms of the trailing-12-month Return on Common Equity margin, GM’s 15.11% is 37.6% higher than the 10.99% industry average. Likewise, its 6.19% trailing-12-month Capex / Sales is 114.1% higher than the 2.89% industry average. Its 6.06% trailing-12-month net income margin is 39.3% higher than the 4.35% industry average.
GM’s revenue for the fiscal fourth quarter ended December 31, 2024, was $47.70 billion, up 11% year-over-year. Likewise, its adjusted EBIT grew 42.8% from the prior-year quarter to $2.51 billion. The company’s adjusted automotive free cash flow and adjusted EPS were $1.82 billion and $1.92, up 35.9% and 54.8%, respectively, from the year-ago values.
Street expects GM’s revenue for the quarter ending March 31, 2025, to increase 9.1% year-over-year to $46.92 billion. Its EPS for the quarter ending September 30, 2025, is expected to rise 4.4% year-over-year to $3.09. It surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has gained 42.2% over the past year to close the last trading session at $50.04.
GM’s POWR Ratings reflect solid prospects. It has an overall rating of B, which translates to a Buy in our proprietary rating system.
It is ranked #13 in the same industry. It has a B grade for Value and Sentiment. To access additional grades for GM’s Growth, Momentum, Stability, and Quality, click here.
Stock #1: BYD Company Limited (BYDDY)
Headquartered in Shenzhen, China, BYDDY engages in automobile and battery business internationally. The company operates in two segments: Mobile Handset Components, Assembly Service, and Other Products; and Automobiles and Related Products and Other Products.
In terms of the trailing-12-month EBITDA margin, BYDDY’s 14.46% is 26.4% higher than the 11.44% industry average. Its 23.74% trailing-12-month Return on Common Equity is 116.1% higher than the 10.99% industry average. Moreover, its 12.93% trailing-12-month Return on Total Capital is 106.2% higher than the 6.27% industry average.
For the nine months that ended September 30, 2024, BYDDY’s operating revenue reached RMB 502.25 billion ($69.26 billion), reflecting 18.9% growth from the prior-year period. Its total profit for the period grew 20.1% year-over-year to RMB 31.32 billion ($4.32 billion).
For the same period, the company’s net profit was RMB 26.25 billion ($3.62 billion), up 17.6% year-over-year, while its EPS increased 18.1% from the prior-year period to RMB 8.68.
For the quarter ended December 31, 2024, BYDDY’s revenue is expected to increase 47.6% year-over-year to $36.81 billion. Its EPS for fiscal 2024 is expected to grow 39.6% year-over-year to $3.78. BYDDY’s stock has gained 42.8% over the past year to close the trading session at $70.36.
BYDDY’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, translating to a Buy in our proprietary rating system.
It has an A grade for Sentiment and a B grade for Growth and Quality. It is ranked #8 in the Auto & Vehicle Manufacturers industry. To see BYDDY’s Value, Momentum, and Stability ratings, click here.
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TSLA shares were trading at $385.36 per share on Wednesday afternoon, down $12.73 (-3.20%). Year-to-date, TSLA has declined -4.58%, versus a 2.38% rise in the benchmark S&P 500 index during the same period.
About the Author: Abhishek Bhuyan
Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments. More…
