Why Rivian and BYD Are Among the Best EV Stocks to Consider Now

The electric vehicle sector remains one of the most compelling long-term investment opportunities despite recent market headwinds. According to Grand View Research, the global EV market is projected to expand at a 32.5% compound annual growth rate (CAGR) from 2025 to 2030, signaling continued momentum as EVs gradually displace traditional gasoline-powered vehicles. For investors seeking exposure to this secular trend, Rivian and BYD represent two of the best EV plays in today’s market—each offering distinct advantages and growth catalysts that justify closer examination.

Understanding the EV Market Opportunity

While EV adoption has decelerated from its peak enthusiasm, industry experts maintain a bullish long-term outlook. The transition from internal combustion engines to electric powertrains is expected to accelerate through the decade, creating substantial opportunities for well-positioned manufacturers. The best EV stocks will likely be those that can scale production efficiently while maintaining technological advantages and cost competitiveness. Both Rivian and BYD fit this profile, though through different paths and at different maturity stages.

Rivian’s Path to Growth Through Innovation

Rivian has positioned itself as a premium electric vehicle manufacturer, specializing in high-end pickups, SUVs, and custom delivery vans. Since going public in 2021, the company has navigated significant production challenges. Initial plans to produce 50,000 vehicles in 2022 fell short at 24,337 units due to supply chain disruptions. Production recovered substantially in 2023 with 57,232 vehicles delivered, though 2024 saw a contraction to 49,476 vehicles as macroeconomic pressures, elevated interest rates, reduced EV incentives, and intensified competition took their toll.

Looking ahead to 2025, Rivian projects deliveries between 40,000 and 46,000 units—reflecting near-term headwinds but not permanent impairment. The real growth story lies in the company’s upcoming milestones. The launch of its more affordable R2 SUV is expected to significantly broaden its addressable market by reaching price-conscious buyers. Additionally, the opening of its Georgia manufacturing facility and its strategic partnership with Volkswagen represent substantial growth drivers. Analysts anticipate Rivian’s revenue will grow at a 31% CAGR from 2024 through 2027 as the company gradually narrows losses. Trading at less than three times this year’s sales, the stock appears to offer compelling valuation for investors with a multi-year horizon.

BYD’s Competitive Edge in the EV Revolution

BYD’s trajectory presents a markedly different case study. The company evolved from its origins as a battery manufacturer into China’s largest automaker over two decades. In 2022, it made a strategic pivot away from gasoline-only vehicles to focus exclusively on plug-in hybrid electric vehicles (PHEVs) and battery-electric vehicles (BEVs). This commitment to electrification, combined with proprietary lithium iron phosphate (LFP) battery technology—which offers advantages in safety, cost efficiency, and energy density compared to conventional lithium-ion cells—has proven transformative.

The scale of BYD’s growth is staggering. From 2020 to 2024, annual vehicle sales surged from approximately 427,000 units to 4.27 million units. Simultaneously, revenue multiplied more than fivefold, and net income expanded nearly tenfold. This explosive growth has been fueled by vertical integration across its supply chain, consolidation of fragmented production lines through its e-Platform 3.0 architecture, and aggressive international expansion into emerging and developed markets.

While growth is moderating as the business matures, forward projections remain impressive. Analysts project BYD’s revenue and net income will expand at CAGRs of 13% and 16%, respectively, from 2024 through 2027. At 16 times this year’s earnings, the stock trades at a reasonable valuation relative to its profitability and trajectory—offering potential upside for investors who believe in the company’s international expansion thesis.

Valuation: Why These Stocks Offer Value

Both stocks present compelling risk-reward profiles when evaluated against their long-term growth potential. Rivian’s lower revenue multiples reflect investor skepticism about its near-term path to profitability, but this creates a potential opportunity for contrarian investors who believe in the company’s technology and upcoming catalysts. BYD’s more modest valuation relative to its established profitability and scale provides a different type of value proposition—that of a best EV stock with demonstrated execution capability.

Investment Outlook and Considerations

The case for Rivian and BYD as best EV stocks rests on their differentiated positioning, proprietary technologies, and visibility to substantial growth drivers. However, prospective investors should note that the Motley Fool Stock Advisor analyst team has identified other stocks they believe merit consideration as top long-term holds. Past performance—including Netflix’s and Nvidia’s exceptional returns for early investors—demonstrates the value of rigorous stock selection.

Investors should approach any individual stock decision with comprehensive analysis and consideration of their own time horizon and risk tolerance. The EV sector offers genuine long-term potential, and these two companies merit investigation for those seeking exposure to this transformative industry trend.

Leo Sun holds no position in any stocks mentioned. The Motley Fool recommends BYD Company and Volkswagen. Disclosure policy applies.