3 Top Electric Vehicle (EV) Stocks to Buy in July

Key Points

• Rivian and Lucid Group share prices have plenty of upside.

• But there's one classic EV stock investors shouldn't ignore.

• 10 stocks we like better than Lucid Group ›

If you're looking for huge growth potential, check out electric car stocks. These businesses are hard to get off the ground. But once growth begins, it can be hard to stop. Just take a look at Tesla (NASDAQ: TSLA). Since 2010, its shares have increased in value by more than 23,000%.

Looking to grow your portfolio with EV stocks? Here are your best three options right now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Rivian could be the next Tesla

If I had to identify the next Tesla, Rivian (NASDAQ: RIVN) would be my top choice. The company recently achieved positive gross margins for the first time, adding significant credibility to its ability to survive financially. But the biggest reason for optimism is still ahead.

By early 2026, management expects to begin production of three new vehicles. All are expected to be priced under $50,000. That's a huge deal. Being able to produce an EV at this price point is difficult for most EV start-ups to achieve. As both Tesla and Rivian have proven, it can often take more than a decade, not to mention billions of dollars in investment.

Producing cheap vehicles under $50,000 -- so-called "mass market" vehicles -- is a huge deal for several reasons. First, it will allow Rivian to tap tens of millions of new buyers. Today, Tesla's mass market vehicles account for more than 90% of its vehicle sales. That's a huge testament to its ability to grow an EV business rapidly. Getting these vehicles to market will give Rivian a multiyear runway for sizable growth. Second, purchasers are more cost conscious than ever. Recent surveys show that more than 80% of car buyers would cancel their order if prices rose by 25%.

Trading at just 2.8 times earnings, Rivian's growth potential in 2026 and 2027 doesn't seem fully accounted for in the company's stock price.

This EV stock has huge growth potential

Speaking of huge growth possibilities, arguably no EV stock today has more upside potential than Lucid Group (NASDAQ: LCID). With a market cap of just $7 billion, Lucid is less than half the size of Rivian, and less than 1% the size of Tesla. On a market cap basis alone, Lucid has a lot of room for growth.

Like Rivian, Lucid is planning to start production of several new mass market vehicles next year, though the recent departure of its CEO and a relatively limited access to capital may push this timeline out a bit. Still, by 2027, expect Lucid to have at least one model priced under $50,000 in its lineup.

More than 30 EV start-ups have gone under in the past decade. And Lucid still has a long way to go to get its mass market vehicles on the road. But the growth potential is clearly there. Investors looking to get aggressive to maximize growth potential should take a closer look.

Image source: Getty Images.

Tesla still has plenty of room to grow

No list of promising EV stocks would be complete without Tesla. With a $960 billion market cap, Tesla is clearly the industry giant. But according to some analysts, the company's biggest days of growth remain ahead.

Last month, Tesla officially launched its robotaxi service in Austin, Texas. While the rollout has been rocky, Tesla is reportedly planning to expand this service to new areas of Austin relatively soon. How big could this global robotaxi market get? Cathie Wood, CEO of ARK Invest, think the market size will eventually reach $10 trillion. Wedbush analyst Dan Ives thinks this opportunity could soon add $1 trillion to Tesla's market cap.

Rivian and Lucid's diminutive size likely grants them higher raw upside potential. But Tesla's robotaxi division could surprise the market by fueling another decade of impressive growth for the company.

Should you invest $1,000 in Lucid Group right now?

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.