2 Top Shares to Buy as the EV Market Shifts: Rivian and BYD

As the electric vehicle market continues its structural transformation, investors hunting for the best stocks to buy in the coming bull market should turn their attention to Rivian (NASDAQ: RIVN) and BYD (OTC: BYDDY). While these two companies operate in different geographies and market segments, they both represent compelling opportunities for those seeking exposure to the secular growth of electric vehicles over the next five years and beyond.

Understanding the EV Market Opportunity and Growth Catalysts

The electric vehicle sector has faced near-term headwinds, but the long-term thesis remains intact. According to Grand View Research, the global EV market is projected to expand at a compound annual growth rate (CAGR) of 32.5% from 2025 to 2030, suggesting that electric vehicles will continue displacing gasoline-powered automobiles throughout the remainder of this decade. This enduring tailwind creates a substantial runway for companies that can execute on their expansion plans and achieve profitability—making it an opportune moment for contrarian investors to identify undervalued top shares to buy in this space.

The challenge for investors is distinguishing between which EV makers will thrive and which will struggle. Both Rivian and BYD have positioned themselves differently to capture market share, each with distinct advantages that merit closer examination.

Rivian: American Premium Innovation and Product Diversification

Rivian entered the market with a bold mission: manufacture premium electric pickups, SUVs, and custom delivery vans aimed at the high-end consumer and commercial segments. When the company went public in 2021, management initially projected it could scale to 50,000 vehicles annually by 2022. Reality proved more challenging.

Supply chain disruptions limited 2022 output to just 24,337 units. While Rivian more than doubled production to 57,232 vehicles in 2023, the subsequent year brought fresh obstacles. In 2024, amid macroeconomic headwinds including elevated interest rates, reduced government EV subsidies, and intensifying competitive pressure, Rivian delivered 49,476 vehicles—below 2023 levels. For 2025, management guided for only 40,000 to 46,000 deliveries as the company navigates ongoing profitability challenges.

Despite near-term production setbacks, Rivian’s growth narrative remains compelling. Analysts project revenue will expand at a 31% CAGR from 2024 through 2027 as the company narrows operating losses. Three major catalysts could validate this optimistic view: the launch of its more affordable R2 SUV, the commencement of operations at its Georgia manufacturing facility, and its strategic partnership with Volkswagen (OTC: VWAP.Y), which could accelerate technology development and reduce costs.

Rivian currently trades at less than three times forward sales—an attractive valuation for investors betting on these stocks as turnaround opportunities. The R2 SUV, in particular, addresses Rivian’s historical challenge: achieving scale among middle-market buyers rather than exclusively targeting ultra-wealthy consumers.

BYD: Chinese Scale and Vertical Integration Dominance

BYD represents a fundamentally different business model. Originally established as a battery manufacturer, the company has evolved into China’s leading automaker over two decades through strategic diversification and vertical integration.

In 2022, BYD made a pivotal decision to discontinue gasoline-only vehicles, concentrating instead on plug-in hybrid electric vehicles (PHEVs) and battery-electric vehicles (BEVs). This strategic narrowing allowed the company to develop and deploy its proprietary lithium iron phosphate (LFP) battery technology—a critical competitive moat that proved cheaper, safer, and more power-efficient than conventional lithium-ion batteries.

The results speak for themselves. Between 2020 and 2024, BYD’s annual vehicle sales exploded from 427,302 units to 4.27 million units. Revenue increased more than fivefold during this period, while net income grew nearly tenfold. This explosive growth was fueled by three competitive advantages: vertical integration of the supply chain, consolidation of fragmented production lines under its unified e-Platform 3.0 architecture, and international market expansion.

Looking ahead, analysts anticipate BYD’s revenue and net income will grow at CAGRs of 13% and 16%, respectively, through 2027. While growth is moderating as the business matures, these figures remain robust for a company now competing at massive scale. The stock currently trades at 16 times this year’s earnings—arguably attractive for a manufacturer demonstrating such profitability and operational efficiency.

Comparing the Investment Cases: Risk and Reward Profiles

These two stocks represent contrasting risk-reward profiles. Rivian is a higher-beta play: a company still unprofitable, operating at reduced capacity, but potentially ready to unlock substantial value if its R2 SUV gains market acceptance and its manufacturing footprint expands efficiently. The upside could be substantial for patient capital, but execution risk remains considerable.

BYD, by contrast, is a more mature story. The company has already proven its ability to execute at scale, achieve profitability, and compete globally. The risk profile is lower, and the business visibility is higher—but this comes at the cost of somewhat more modest long-term growth expectations relative to Rivian.

Why Both Stocks Merit Consideration for Your Portfolio

For investors constructing a balanced exposure to the global EV opportunity, both of these top shares to buy offer distinct merits. Whether you’re drawn to Rivian’s turnaround narrative and technological innovation or BYD’s proven execution and scale economics, the coming years promise compelling opportunities. The broader bull market in electric vehicles remains in its early innings, and these two stocks represent different—but equally interesting—ways to participate in that secular growth story.

The key is to conduct your own due diligence, understand your personal risk tolerance, and determine whether your investment horizon aligns with the timelines these companies require to execute on their strategies. Both companies face genuine challenges ahead, but both also possess the resources, technology, and market positioning to emerge as winners in an industry being fundamentally reshaped.