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The electric vehicle (EV) market slowed in 2024 but is expected to see explosive growth over the next decade. As the global economy transitions to greener, more sustainable energy solutions, finding the best EV stocks to buy could be a strategic move.
One of the key factors influencing the EV market is the interest rate environment. Lower interest rates can have a significant impact on the growth of the EV sector. Lower interest rates reduce borrowing costs for companies, making it much easier to invest in innovation.
Additionally, falling interest rates will make it more affordable for consumers to take out car loans, further accelerating EV adoption. As consumer risk tolerance and spending continue to recover, EV stocks will be an attractive investment opportunity in the coming years.
Let’s explore the top 3 EV stocks to buy at low interest rates in 2025!
Tesla (TSLA)
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Tesla (NASDAQ:TSLA) has revolutionized the auto industry with its innovative electric vehicle (EV) platform and compelling vision for sustainable transportation. The company's strong growth trajectory and market dominance make it one of the top EV stocks to buy in 2025.
Tesla's success since the pandemic is due to several key factors. First and foremost, the company is led by legendary CEO Elon Musk. Since its founding in 2003, its commitment to innovation has been unwavering, always pushing the boundaries of what is possible. From improving battery efficiency to developing a cutting-edge autonomous driving platform, Tesla is relentless in its pursuit of excellence. Advances in battery technology are groundbreaking, especially the development of the 4680 battery cell. This lithium-ion battery significantly reduces production costs, extends vehicle range, and makes EVs attractive to a wider range of users. Additionally, the company is focused on expanding its production capacity, setting up strategically located gigafactories in the United States, Asia, and Europe. Although the company expects a decline in vehicle deliveries and gross margins in fiscal 2024, its long-term growth outlook remains unchanged.
Ferrari NV (race)
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Ferrari NV (NYSE:RACE), a name synonymous with luxury and performance, is strategically pivoting into the luxury EV market. In 2025, Ferrari plans to release its first all-electric vehicle, which could attract a new demographic of environmentally conscious luxury car buyers.
Ferrari's entry into the EV market is driven by regulatory pressures and a desire to stay ahead of industry trends. Led by visionary CEO Benedetto Vigna, he emphasizes that Ferrari's approach to electrification is focused on the brand's unique driving experience. The company's focus on quality craftsmanship and strong brand recognition makes it well-positioned to bridge the gap and create a premium EV driving experience. Additionally, the company's incredible financial performance over the past few years makes it even more attractive. Revenues in FY23 grew 17% year-over-year to a record high of $5.97 billion. Net income exceeded $1 billion for the first time, and the company generated a record free cash flow of $1.33 billion. Margins have also remained very strong, with management projecting double-digit revenue and profit growth in 2024.
ON Semiconductor (ON)
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ON Semiconductor (NASDAQ:ON) is a key player in the electric vehicle (EV) supply chain powering the EV revolution. As a leading provider of semiconductor solutions, ON Semiconductor plays a key role in enabling the development and deployment of EVs around the world.
ON Semiconductor's products are essential for many aspects of EVs, including power management, battery charging, and advanced driver assistance systems (ADAS). The company's expertise in silicon carbide (SiC) modules is essential to improving EV efficiency and performance. These materials have excellent electrical properties and are key to powering EVs. ON Semi has remained very resilient despite the economic slowdown across these industries. Despite slowing growth in 2023, management has been relentless in expanding production capacity. This includes a recent $2 billion investment in the Czech Republic and the expansion of its SiC production facility in Buchheron, South Korea. With interest rates expected to fall through 2025, ON stock is one of the top EV stocks to buy now.
As of the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's disclosure guidelines.
Terel Miles is a contributing writer at InvestorPlace.com and has over seven years of experience investing in the financial markets.
Technology, Artificial Intelligence, Consumer Goods, Automotive, Batteries, Electric Vehicles, Lithium, Energy, Renewables, Semiconductors, Software