The electric vehicle (EV) market is set to charge ahead in 2025, with global sales projected to surge by 30%, according to S&P Global Mobility. This momentum is expected to put 15.1 million new battery electric vehicles (BEVs) on the road, marking a sharp rise from the 11.6 million estimated in 2024.
While regional challenges, including policy uncertainties in the U.S. and subsidy cuts in Germany, create some headwinds, the EV sector continues to thrive.
Emerging markets like India and Brazil are witnessing record-breaking adoption rates, further fueling global growth. Meanwhile, advancements in battery technologies and declining production costs are making EVs more accessible than ever.
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Amid this backdrop, two EV stocks stand out as no-brainer investments, set to capitalize on surging demand, global expansion, and the push toward decarbonizing road transport.
Lucid (NASDAQ: LCID) stock
Lucid Motors (NASDAQ: LCID) is riding a wave of investor optimism as its stock continues to climb, closing at $3.29 on January 3, following an 8% single-day gain and a 43% surge over the past month.
This momentum signals growing confidence in the sector driven by positive signals from competitors like Tesla (NASDAQ: TSLA) and Rivian (NASDAQ: RIVN), which reported record sales.
This overall trend suggests that consumer demand for EVs remains robust despite earlier concerns about a slowdown, setting high expectations for Lucid’s fourth-quarter results, anticipated in late January.
Adding to investor confidence, Lucid recently announced that its luxury EVs will feature the Lucid Assistant, an advanced AI voice-recognition system from SoundHound AI (NASDAQ: SOUN).
Additionally, the company has opened pre-orders for its first electric SUV, the Gravity, which is expected to expand its market presence and drive higher sales volumes.
While Lucid’s high-end pricing limits its appeal to a narrower audience, the company is entering 2025 with strong growth catalysts, including new product launches in a rapidly expanding EV market.
Rivian (NASDAQ: RIVN) stock
Rivian is set for a significant turnaround in 2025, having navigated key challenges in 2024, including supply chain disruptions. Rivian’s joint venture with Volkswagen is set to inject capital, accelerating the production of Rivian’s affordable R2 truck and production of the midsize EV platform at a plant in Georgia—critical steps toward achieving positive free cash flow.
The supply chain bottlenecks, such as the shortage of a shared component on the R1 and RCV platforms, are no longer a constraint on Rivian’s production.
Rivian produced 49,476 vehicles and delivered 51,579 in 2024, aligning with guidance. With its Q4 2024 financial results scheduled for February 20, 2025, Rivian could deliver additional positive updates that further buoy investor sentiment.
Recent stock momentum also highlights growing confidence, with shares climbing 24% in a single day and 18% over the past five days, closing at $16.49 as of January 3.
With global demand for EVs continuing to rise and significant growth catalysts on the horizon, both companies are well-positioned to capitalize on the sector’s rapid expansion.
Featured image via Shutterstock
