An updated edition of the April 22, 2026, article.

The global automotive industry is undergoing one of the biggest transformations in its history, fueled by the rapid adoption of electric vehicles (EVs) and advances in autonomous vehicle (AV) driving technology. As battery technology improves, driving ranges increase and charging networks become more widespread, EVs are becoming a practical choice for a growing number of consumers. At the same time, high fuel prices amid the Middle East conflict are strengthening the economic case for electric cars.

For much of the past decade, Tesla (TSLA Quick QuoteTSLA - Free Report) was viewed as the undisputed leader in the EV market. However, the competitive landscape has changed significantly. Chinese automakers, led by BYD, have emerged as formidable competitors, while established global automakers are investing billions of dollars to accelerate their own electrification strategies. Meanwhile, a wave of new EV-focused companies is entering the market, intensifying competition and giving consumers more choices than ever before.

The shift toward electric mobility continues to gain momentum globally. Per International Energy Agency, EV sales rose 20% year over year to surpass 20 million units in 2025, accounting for roughly one in every four new vehicles sold worldwide. Global EV sales are projected to reach 23 million units in 2026, representing approximately 28% of all new vehicle sales. Europe is expected to be one of the fastest-growing regions, where nearly one-third of new cars sold could be electric by 2026. China, already the world's largest EV market, is also expected to see continued growth, with electric vehicles approaching 60% of total vehicle sales.

Beyond electrification, autonomous driving is emerging as the industry's next major growth opportunity. Advances in artificial intelligence, sensors, cameras, and vehicle connectivity are steadily improving the capabilities of self-driving systems. 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) , WeRide Inc. (WRD Quick QuoteWRD - Free Report) , Lithium Americas Corp. (LAC Quick QuoteLAC - Free Report) and ChargePoint Holdings, Inc. (CHPT Quick QuoteCHPT - Free Report) .

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

4 Stocks to Buy

NIO: The companyappears to be entering a more promising phase of its growth story, supported by accelerating vehicle deliveries, a broader product portfolio and improving operational discipline. The Chinese EV maker has regained momentum in recent quarters as demand for its vehicles strengthens and newer models gain traction in the market.

A key driver of this growth is NIO's expanding lineup. At the premium end, the recently launched ES9 is expected to further strengthen NIO's position. The model builds on the success of ES8, which has consistently been one of the best-selling vehicles in China's high-end automotive segment. The company’s sub-brands, Onvo and Firefly, are helping it target different customer segments and price points, broadening its addressable market.

Beyond top-line growth, NIO is becoming a more efficient business. Management has been implementing a more decentralized operating structure aimed at improving cost controls and capital allocation. These efforts are already showing up in improving vehicle margins. More importantly, the company reported its first-ever quarterly profit in the fourth quarter of 2025, a milestone that suggests its long-standing path toward profitability is finally becoming more visible.

NIO's battery-swapping ecosystem remains one of its biggest competitive advantages. With nearly 4,000 battery swap stations and an extensive charging network, the company offers a level of convenience that few rivals can match. NIO is also working to monetize its advanced driver assistance technologies through subscription-based services. If successful, this could create a recurring, higher-margin revenue stream and reduce the company's dependence on vehicle sales alone, providing another avenue for long-term growth.NIO currently carries a Zacks Rank #2 (Buy).

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

WeRide: It is emerging as one of the most advanced and globally diversified players in the autonomous driving industry. WeRide has already deployed autonomous vehicles in more than 40 cities across 12 countries, giving it an early lead in commercial operations. Through its WeRide One system, the company offers solutions ranging from Level 2 to Level 4 autonomy, serving mobility, public transportation, logistics and sanitation markets. This diversified approach allows WeRide to participate in multiple growth opportunities as autonomous technology gains wider adoption.

The company is also making steady progress in commercializing its technology. In China, WeRide operates Level 4 robotaxis in Shanghai through partnerships with Chery Group and Jinjiang Taxi, connecting major transportation hubs and popular destinations. Internationally, its Robobus service is already operating in locations such as Singapore, Paris and Riyadh, demonstrating the growing real-world use of autonomous transportation for last-mile mobility.

What sets WeRide apart is the breadth of its global footprint. The company is the only autonomous driving technology provider with permits across eight markets, including China, the United States and several countries in Europe and the Middle East. It continues to expand its European presence through projects in France, Switzerland, Belgium, Spain and Slovakia. Notably, its partnership with Uber to launch Spain's first commercial robotaxi service later this year marks another important step toward broader commercialization.

As AVs move closer to mainstream adoption, WeRide's combination of early-mover advantage, regulatory approvals and expanding commercial deployments positions it to benefit from one of the most significant technological shifts reshaping the transportation industry. WRD currently carries a Zacks Rank #2.

Lithium Americas: The company offers investors a way to gain exposure to one of the most important materials underpinning the future of EVs. As EV adoption continues to grow, demand for lithium—which is a key component of batteries— is expected to rise steadily over the coming years.

At the center of Lithium Americas' growth story is the Thacker Pass project in Nevada, which hosts the largest known lithium resource in the United States. The project is strategically important because it can help reduce the country's reliance on imported lithium while supporting the expansion of domestic battery manufacturing. Once fully operational, Thacker Pass is expected to produce up to 40,000 tons of lithium carbonate annually, enough to supply batteries for roughly 800,000 electric vehicles.

The project is advancing steadily toward production. Phase 1 remains on track, with mechanical completion of the processing plant expected by late 2027 and commercial ramp-up planned through 2028. Importantly, the project has secured substantial financial and strategic support. A $2.23 billion loan from the U.S. Department of Energy provides funding visibility. General Motors has committed to offtake agreements covering up to 100% of Phase 1 production and a significant portion of future Phase 2 output.

The scale of Thacker Pass is particularly noteworthy. Phase 1 alone is expected to expand current U.S. lithium production capacity by roughly seven times, highlighting the project's potential impact on the domestic supply chain. Lithium Americas’ large-scale resource base, government backing and clear production roadmap position the company to benefit from rising demand for battery materials in the years ahead. LAC currently carries a Zacks Rank #2.

ChargePoint: While much of the attention in the EV industry is focused on vehicle manufacturers, ChargePoint is building the infrastructure that makes widespread EV adoption possible. The company has built one of the largest EV charging ecosystems in the world, connecting drivers to more than 1.4 million public and private charging ports globally. Its managed network includes roughly 400,000 charging ports, including more than 41,000 DC fast chargers, with a growing presence across Europe.

ChargePoint continues to strengthen its competitive position through innovation and strategic partnerships. The company recently introduced Express Solo, a high-powered charging solution capable of delivering up to 600 kW to a single vehicle, helping address consumer demand for faster charging. It is also expanding into new use cases through partnerships such as its agreement with OBE Power to deploy approximately 2,500 charging ports at multifamily residential properties. In addition, ChargePoint secured one of its largest transit fleet orders to date, supplying charging solutions for Santa Monica's Big Blue Bus electrification program.

Beyond expanding its footprint, ChargePoint is increasingly focused on improving the economics of its business. Rising platform engagement is helping drive monetization opportunities, while stronger cost controls and better supply-chain execution are improving network reliability and deployment efficiency.

As EV adoption accelerates globally, ChargePoint's extensive charging network, technology leadership and growing recurring revenue opportunities position it to benefit from the long-term expansion of the electric mobility ecosystem. CHPT currently carries a Zacks Rank #2.