An updated edition of the March. 4, 2026, article.

The global auto industry is going through a structural shift, driven by rapid progress in electric and autonomous technologies. Electric vehicles (EVs) are becoming more practical as battery performance improves and charging infrastructure expands, making them increasingly viable for everyday use.

For years, Tesla (TSLA Quick QuoteTSLA - Free Report) was seen as the clear leader in the EV space. However, the competitive landscape has evolved. China’s BYD Co Ltd (BYDDY Quick QuoteBYDDY - Free Report) emerged as a strong rival, overtaking Tesla in global annual sales last year. Tesla managed to regain the top position in the first quarter of 2026, showing that the race remains highly dynamic.

That said, competition is intensifying across the board. Chinese automakers are scaling production rapidly, legacy carmakers are investing heavily to stay relevant, and new EV-focused companies are entering the market. As a result, consumers now have a wider range of options, pushing innovation and increasing pricing pressure across the industry.

Growth trends remain strong. Global battery electric vehicle (BEV) sales reached about 14.6 million units in 2025, up 29% year over year, accounting for just over 16% of total vehicle sales. This momentum is expected to continue, with volumes projected to grow to 17.4 million units in 2026, representing roughly 19% market share, per S&P Global Mobility. 

Per EV Volumes, the adoption of EVs is expected to accelerate significantly, with global volumes potentially reaching close to 90 million units by 2040 and making up the majority of vehicle sales.

Meanwhile, autonomous driving is emerging as the next major growth driver. Advances in artificial intelligence, sensors and connectivity are steadily improving vehicle capabilities, supporting rapid expansion in the autonomous vehicle market over the coming decade.

The global autonomous vehicle market, valued at $3.36 trillion in 2025, is expected to reach $4.44 trillion in 2026 and $41.75 trillion by 2034, at a compound annual growth rate of 32.3% during 2026-2034, according to Fortune Business Insights. Companies like Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Waymo and Baidu (BIDU Quick QuoteBIDU - Free Report) are key players in this space.

For investors, EVs and AVs represent a strong long-term opportunity. They combine growth, innovation and rising demand. Our Electric Vehicles & Autonomous Driving Screen highlights companies positioned to benefit from these trends, including NIO Inc. (NIO Quick QuoteNIO - Free Report) , Beam Global (BEEM Quick QuoteBEEM - Free Report) and Innoviz Technologies (INVZ Quick QuoteINVZ - Free Report) .

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3 Stocks to Buy

NIO: It is steadily evolving from a rapid growth-focused player into a more balanced and execution-driven EV company. The company closed 2025 on a strong note, delivering over 326,000 vehicles, a sharp jump from the previous year. That momentum has carried into 2026, with first-quarter deliveries nearly doubling year over year.

A big part of this progress comes from NIO’s expanding product lineup. The refreshed ES8 has gained strong traction, and the upcoming ES9, along with a new five-seater version of the ES8, should help the company tap into more customer segments. At the same time, its sub-brands—Firefly and Onvo—are adding depth to its portfolio. This multi-brand approach allows NIO to compete across different price points, making it less dependent on a single segment.

Beyond volumes, the company is also tightening its operations. A shift toward a more decentralized structure is helping improve cost control and capital efficiency. This is already visible in its vehicle margins, which are moving in the right direction. More importantly, NIO reported its first-ever quarterly profit in the fourth quarter of 2025, signaling that its path to profitability is becoming clearer.

This China-based company is also accelerating its international footprint. With presence in 20 markets and plans to double that footprint by 2026, international expansion is becoming a key growth lever.

At the core of its differentiation is its battery-swapping technology, offered through its Battery-as-a-Service model. This not only reduces upfront costs for buyers but also addresses range anxiety, giving NIO a unique edge in an increasingly crowded EV market. NIO currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beam Global:It is evolving from a niche EV charging player into a broader, more diversified energy solutions company with a growing global footprint. The shift became more visible over the past year as the company expanded beyond its traditional dependence on U.S. government contracts into commercial and international markets.

The formation of Beam Middle East, a joint venture based in Abu Dhabi, opens access to opportunities across the Middle East and Africa. At the same time, Beam Global is steadily building presence across Europe and North America, supplying products across multiple countries and strengthening its manufacturing and operational base.

Equally important is the company’s push to diversify its product portfolio. While its EV ARC solar charging systems remain core, Beam Global is now moving into adjacent areas like battery storage, autonomous vehicle charging and smart city infrastructure.

BEEM’s wireless charging solution for autonomous vehicles could become a meaningful long-term growth driver if adoption scales. Partnerships with companies in drones, mobility, and even defense highlight how its technology is finding applications beyond traditional EV charging.

Despite this expansion, the company is maintaining financial discipline. It remains debt-free, has improved gross margins, and is working to control operating costs. As sales become more diversified and less reliant on a single customer group, Beam Global appears to be building a more resilient and scalable business positioned to tap into multiple electrification and energy transition trends. BEEM currently carries a Zacks Rank #2.

Innoviz: It is a leading player in LiDAR technology, supplying advanced sensing solutions to major global automakers as it works toward enabling safer and more reliable autonomous driving.

Innoviz picked up meaningful momentum in 2025, with revenues more than doubling year over year and gross margins turning positive. This reflects not just higher volumes but also better cost structure and improving product economics.

A key pillar of Innoviz’s story lies in its expanding set of automotive partnerships. The company is advancing across both Level 3 and Level 4 autonomy programs with partners such as Volkswagen and Mobileye, while also working with Daimler Truck and Torc Robotics on autonomous trucking solutions. Its selection for series production in Level 4 Class 8 autonomous trucks marks a meaningful transition from testing phases to commercial rollout. At the same time, several passenger vehicle programs are progressing toward the start of production over the next few years. With multiple programs expected to scale over the next few years, visibility on future revenues is gradually improving.

Product innovation remains a key driver for Innoviz. InnovizThree is designed for behind-the-windshield integration with a smaller size, lower power use, and reduced cost, making adoption easier for automakers. Beyond automotive, solutions like InnovizSMART and InnovizSMARTer are expanding the company’s reach into areas like security and smart infrastructure, improving scalability across use cases.

While profitability is still a work in progress, improving margins, controlled costs and a growing pipeline of programs suggest that Innoviz is steadily moving toward a more scalable and commercially viable business model. INVZ currently carries a Zacks Rank #2.