An updated edition of the Aug 11, 2025 article.

The auto industry is undergoing transformation, with electric vehicles (EVs) and autonomous vehicles (AVs) becoming mainstream and reshaping how people think about mobility. For years, Tesla (TSLA Quick QuoteTSLA - Free Report) dominated the EV conversation. Today, the field looks very different. Chinese rival BYD Co. Ltd (BYDDY Quick QuoteBYDDY - Free Report) is challenging Tesla’s leadership, and traditional automakers are rapidly pivoting toward electrification. On top of that, pure-play EV startups are adding fresh competition and giving consumers more choice than ever.

A big reason behind this acceleration is government support. Many countries are offering subsidies, tax credits, and other incentives to encourage drivers to go electric. This push is backed by fast progress in technology. Improved battery technology has increased driving range, reduced costs and made EVs more appealing to a wider audience. The growth of fast-charging networks is also reducing one of the biggest barriers to adoption — charging time. Together, these changes are helping EVs shift from niche products to mass-market options.

The numbers reflect the momentum. According to EV Volumes, global EV sales climbed 25% in 2024 to 17.8 million units. That figure is expected to reach 21.3 million in 2025, giving EVs nearly a quarter of all auto sales. By 2030, annual sales could more than double to 40.1 million.

Regional trends show interesting dynamics. Europe is on track for EVs to make up 63% of sales by 2030, China has already crossed the halfway mark this year, and emerging markets across Asia and Latin America are catching up quickly. North America lags due to tariffs and weaker incentives but is expected to rebound toward the end of the decade. Battery demand, meanwhile, is projected to top 1 TWh in 2025—underscoring how quickly electrification is scaling up.

At the same time, AV development is progressing. Advancements in artificial intelligence, machine learning, sensors and connectivity are making AVs smarter and safer. Companies like Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Waymo, Baidu’s (BIDU Quick QuoteBIDU - Free Report) Apollo Go, and Tesla are racing to bring AV technology to roads, with robotaxis and driverless fleets no longer just concepts. Per Statista, the global AV market, valued at about $106 billion in 2021, could soar to more than $2.3 trillion by 2030.

For investors, the EV and AV space represents growth, innovation, and long-term potential. If you want to tap it, our Electric Vehicles & Autonomous Driving Screen will help you to spot high-potential stocks in this space. Interested investors should add QuantumScape Corp. (QS Quick QuoteQS - Free Report) , Nissan Motor Co. (NSANY Quick QuoteNSANY - Free Report) and Blue Bird Corporation (BLBD Quick QuoteBLBD - Free Report) to their portfolio.

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3 Stocks to Buy

Blue Bird: It isn’t just any school bus manufacturer. Blue Bird has been quietly reinventing itself as a leader in clean transportation. While more than 90% of school buses in the United States still run on diesel, the company has been at the forefront of offering alternatives. Currently, it has more than 22,000 propane, natural gas, and electric buses in operation across 1,100 districts in North America, making it one of the largest players in low- and zero-emission student transportation.

Government incentives have provided an extra push. With federal and state funding encouraging school districts to shift toward cleaner fleets, Blue Bird is positioned to capture rising demand. More than half of its sales now come from non-diesel vehicles. To support adoption, it has also expanded into infrastructure with Blue Bird Energy Services and its Clean Bus Solutions venture, giving customers full charging and fleet transition support.

This year, the company broadened its innovation beyond school buses. In April, Blue Bird unveiled two new commercial vehicle platforms: an electric step van and a propane-powered stripped chassis. The electric step van, built on its Class 5–6 stripped chassis, runs on a 140kWh lithium-ion battery, providing up to 130 miles of range and flexible charging times between one and twelve hours. Meanwhile, the propane-powered chassis was developed with Ford and ROUSH CleanTech, pairing a 335-horsepower V8 engine with lower emissions for commercial fleets.

Operationally, Blue Bird is focused on ramping up efficiency and meeting its growing order book. Demand for alternative-powered buses continues to rise, and the company is strengthening its leadership in this niche market. BLBD gives investors a unique angle on clean transportation, focused not on cars, but on everyday school buses. BLBD currently sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

QuantumScape: For years, the company has been known as the solid-state battery pioneer with bold promises, but skeptics often wondered if it could ever deliver. That narrative shifted when QuantumScape teamed up with Volkswagen’s PowerCo. In July, the two announced an expanded collaboration to accelerate development of the QSE-5 battery and establish a pilot production line in San Jose. As part of the deal, PowerCo will provide up to $131 million in milestone-based payments over the next two years—on top of the $130 million already tied to a future licensing agreement.

To prove it can scale, QuantumScape has overhauled its manufacturing approach. The company moved from its older “Raptor” process to a new system called COBRA, which is 25 times faster, more compact, and significantly more cost-efficient. In the race to bring solid-state batteries to market, that kind of productivity boost is critical.

Earlier this month at the IAA Mobility show, QuantumScape powered a Ducati V21L motorcycle with its QSE-5 solid-state cells. The bike ran on COBRA-built batteries, showing that the new process is not just an engineering concept but ready for real-world applications. COBRA has also increased output by 200 times compared to early 2023 levels, pushing QuantumScape closer to true mass production.

Adding to the momentum, the company signed a joint development agreement with another global automaker—signaling broader industry validation. With B1 sample production on the horizon and field testing targeted for 2026, QuantumScape is inching closer to turning its vision into a commercial product that could help shape the future of electric mobility. For investors, QuantumScape is still in the early innings, but its progress is no longer just theoretical. QS stock currently carries a Zacks Rank #2 (Buy).

Nissan: Japan’s Nissan’s EV journey goes back decades. It started with Tama and was followed by LEAF, the world’s first mass-market electric car. This year, the company made two important launches. First came the all-new sixth-generation Micra EV, a compact designed for European drivers with seamless Google integration, intuitive connectivity, and a range of up to 408 km. Then, in June, Nissan rolled out the third-generation LEAF. The new LEAF adopted a crossover body, connected features, and the benefit of more than 15 years of real-world learnings from 28 billion kilometers driven under the nameplate.

But Nissan’s ambitions stretch beyond electrification. In Tokyo this month, the company showcased its next-generation ProPILOT advanced driver-assist technology. Unlike earlier versions that were mostly limited to highways, this system is being designed for dense city streets. It blends Nissan’s “Ground Truth Perception” with Wayve’s AI Driver software, an adaptive platform created by UK-based startup Wayve.

The demo fleet, based on the Ariya electric SUV, equipped with 11 cameras, five radar units, and next-gen LiDAR, gives it the ability to not just detect objects but also interpret complex urban scenes.

Nissan aims to roll out an autonomous ride-share service in Japan by 2027, a move that also responds to the country’s shrinking pool of drivers. Company executives believe their system is already on par with Tesla’s Full Self-Driving, though still at Level 2 autonomy, requiring constant driver supervision.

For Nissan, these moves represent more than product updates—they’re a way to stay relevant in a fast-changing market where United States and Chinese rivals are racing ahead. With new EVs hitting the roads and AV technology steadily advancing, NSANY is signaling it still has a seat at the table in the future of mobility. The stock currently carries a Zacks Rank #2.