Top EV stocks in India and abroad (2025 portfolio picks)

The electric vehicle (EV) sector is undergoing a significant transformation in 2025, with established automakers and disruptive newcomers shaping the future of mobility. As global and Indian governments double down on decarbonisation policies and energy security, investor interest in EV stocks is surging. From Indian stalwarts like Tata Motors and Mahindra & Mahindra to global giants like Tesla, BYD, NIO, and Rivian, this article analyses top EV stocks to watch in 2025 based on financial performance, EV unit sales, product strategy, and government policy alignment.

What Does Tata Motors Do in the EV Space?

Tata Motors is India’s largest EV manufacturer by market share. Its electric vehicle portfolio includes the Nexon EV, Tigor EV, and the recently launched Punch EV. The company benefits from early-mover advantages, deep local supply chain integration, and a growing Tata EV ecosystem that includes Tata Power (charging infrastructure) and Tata Chemicals (battery supply).

For FY2025, Tata Motors reported consolidated revenue of ₹1.19 lakh crore in Q4 FY25 and an annual net profit of ₹8,470 crore. The EV division contributed nearly 13% of domestic passenger vehicle sales volume, though year-on-year EV sales for April 2025 fell 16% to 5,318 units. The company is expanding capacity and has committed to investing over $2 billion in EV operations, including production of a dedicated Gen 2 EV platform.

Tata Motors share price today reflects a steady uptrend, though volatility remains tied to overall auto sector performance and market risk appetite.

Is Mahindra & Mahindra Emerging as a Strong EV Contender?

Mahindra & Mahindra has accelerated its electric push, focusing on SUVs and crossovers. It has launched the XUV400 and showcased several models under its Born Electric lineup, including the BE.05 and BE.07. Mahindra’s strategy revolves around its new EV subsidiary, Mahindra Electric Automobile Limited (MEAL), which secured a ₹1,925 crore investment from British International Investment.

In FY2025, Mahindra reported standalone revenue of ₹1.59 lakh crore, up 14% year-on-year. Net profit stood at ₹12,929 crore. The XUV400, despite initial slow uptake, gained traction after software and range upgrades. Mahindra’s near-term pipeline and joint ventures with global players like Volkswagen (for MEB platform components) are expected to boost EV competitiveness.

From an investment standpoint, Mahindra is seen as a diversified EV play across commercial and passenger vehicle segments, with a solid rural market presence as a hedge against urban EV competition.

Why Is Olectra Greentech Considered a Niche EV Pick?

Olectra Greentech, part of the MEIL Group, is a leading manufacturer of electric buses in India. It caters primarily to state-run transport corporations, positioning itself within the public mobility electrification wave.

As of FY2024–25, Olectra reported revenue of ₹1,154 crore with an EBITDA margin above 20%, driven by strong order flows from cities like Mumbai, Pune, and Hyderabad. Around 80% of its revenue comes from EV buses. By September 2024, Olectra had delivered over 2,200 electric buses and recently secured a contract to supply 5,150 e-buses to TSRTC in Telangana.

While Olectra’s share price remains sensitive to tender cycles and state funding availability, the long-term EV battery stock outlook in public transport makes it an attractive infrastructure-aligned EV stock to invest in 2025.

How Is Tesla Performing in 2025?

Tesla remains a bellwether of the global EV movement. In Q1 2025, the company reported global EV deliveries of 386,810 units—a modest rise from the prior quarter but lower year-on-year. Full-year 2024 revenue was $97.7 billion, up just 1% year-on-year, while net income contracted sharply due to pricing cuts and higher input costs.

Tesla continues to lead in autonomous driving R&D and battery technology. However, its market share has come under pressure from Chinese automakers and lagging growth in the U.S. EV market due to tax credit eligibility issues.

CEO Elon Musk’s shift toward AI-driven robotics and fleet automation has raised questions among analysts, though Tesla’s vertically integrated model still offers long-term advantages. Tesla stock outlook remains mixed for 2025, with valuation concerns offset by its technology edge.

Can BYD Sustain Its Global EV Leadership?

BYD, headquartered in Shenzhen, China, is currently the world’s top EV seller by volume. In 2024, it sold 3.02 million new energy vehicles (NEVs), including 1.6 million battery electric vehicles (BEVs). BYD’s revenue for 2024 was approximately ¥602.3 billion (USD 84 billion), with gross margins stable despite global expansion costs.

In Q1 2025, BYD delivered over 626,000 EVs globally and has launched operations in Southeast Asia, Europe, and South America. Its Dolphin, Atto 3, and Seal models are price-competitive with Tesla and offer localised features.

BYD’s early moves into lithium refining and battery production (via subsidiary FinDreams) shield it from some supply chain shocks. For 2025, BYD remains one of the best electric vehicle stocks to invest in globally due to its scale, vertical integration, and diversified EV portfolio.

Is NIO Still a Growth EV Stock?

NIO is among China’s premium EV brands, with a strong emphasis on smart features, battery swapping, and performance. In Q4 2024, NIO delivered 50,045 vehicles—a 25% quarter-on-quarter rise—and reported FY2024 revenue of $9.3 billion. In February 2025 alone, deliveries rose 62% year-on-year to 8,132 units, signalling early recovery.

Despite persistent net losses, NIO is investing heavily in R&D, with plans to launch its sub-brand, Firefly, targeting the affordable EV segment. It operates over 2,000 battery swap stations in China and recently piloted its first European battery-swapping hub in Norway.

NIO share price today reflects high volatility, typical of early-stage automakers. Investors must weigh strong delivery momentum and tech differentiation against weak bottom-line performance.

What’s Driving Rivian’s Stock Performance?

Rivian, the U.S.-based electric truck and SUV maker, is finally finding operational stability. In Q4 2024, Rivian posted its first-ever profitable quarter, driven by a 38% increase in revenue per vehicle and improved gross margins.

For FY2024, Rivian reported revenue of $4.97 billion and delivered approximately 57,232 vehicles. The launch of its next-gen R2 model, with a base price of $45,000, is scheduled for early 2026 and is expected to be a key volume driver.

Rivian’s Amazon delivery van contract and partnerships with Cox Automotive and Amazon Web Services provide a business moat. However, investor sentiment in 2025 is cautious due to tariff risks, EV credit eligibility revisions, and market-wide profitability concerns.

Rivian remains a high-risk, high-reward EV stock to watch in 2025, especially for investors interested in utility EVs.

What Role Do Government Policies Play in EV Stock Performance?

India’s FAME II Extension and Transition Plans

India’s FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, extended until March 2025, continues to offer incentives of up to ₹10,000/kWh for electric two- and three-wheelers and ₹20,000/kWh for e-buses.

The government has recently rolled out the Electric Mobility Promotion Scheme (EMPS) 2024 to replace FAME II. This scheme allocates ₹500 crore in subsidies over four months starting April 1, 2025, targeting sales of 3.3 lakh EVs. GST on EVs remains at 5%, with import duties on components being rationalised to boost domestic production.

This evolving policy environment plays a significant role in the near-term share price performance of EV players like Olectra and Tata Motors.

U.S. Inflation Reduction Act (IRA) Dynamics

The Inflation Reduction Act (IRA) continues to drive EV sales in the U.S., offering tax credits of up to $7,500 for new EV purchases and $4,000 for used EVs. However, changes to battery material sourcing rules have restricted the number of qualifying models.

In 2025, Republican proposals to roll back these tax credits have created uncertainty. If such changes materialise, it could impact demand for EVs from Tesla, Rivian, and other U.S. players. Analysts suggest that EV makers with integrated battery supply chains and strong domestic manufacturing presence will be better positioned to retain incentives.

Strategic Takeaways for EV Investors in 2025

As the global EV landscape matures, investors must evaluate companies on profitability prospects, technology edge, regulatory moats, and execution capability. In India, Tata Motors and Mahindra offer well-capitalised, scalable EV models. Olectra presents a public mobility angle. Globally, BYD appears to have the strongest momentum, while Tesla, NIO, and Rivian each offer differentiated plays tied to software, design, and customer ecosystems.

Portfolio diversification across geographies and EV subsegments—passenger cars, commercial EVs, and infrastructure—is key to managing risk in the evolving electric mobility space.