Electric vehicle (EV) stocks represent companies involved in designing and manufacturing battery-powered cars, trucks, vans, buses, and the critical systems that support them—such as charging infrastructure, batteries, and software. Once a niche segment of the auto industry, EVs are now a major global growth story: worldwide EV sales are projected to exceed 20 million units in 2025, with global EV market share approaching 25% of all new car sales by 2026. China and Europe continue to lead sales growth, while adoption in North America faces headwinds from changing incentives and policy shifts.
Canada’s EV market has shown a mix of momentum and challenges. Battery-electric vehicle (BEV) and zero-emission vehicle registrations hovered around 8-9 % of total new car sales in 2025, with notable provincial variation and affected by shifts in rebate programs and tariff policies. General Motors, for example, emerged as the top-selling EV brand in Canada through mid-2025, capturing more than 23% of the local EV market with a broad lineup across Chevrolet, GMC, and Cadillac models.
At the same time, Canadian EV sales data reflect broader consumer hesitancy tied to cost, infrastructure, and range concerns, contributing to slower adoption than in some other regions. However, electrification remains a strategic focus for automakers and the Canadian government alike, with continued investment in charging networks and policy support aimed at long-term decarbonization goals.
For investors, this dynamic environment creates both opportunities and risks. EV stocks can provide exposure to the electrification of mobility and clean energy transition, but they also come with market volatility, evolving competition, and technology execution risks that are important to understand before investing. Below, we’ll explore some of the top Canadian EV-related stocks to consider in 2026.
What are electric vehicle stocks?
EV stocks are automobile or parts companies whose primary purpose is to manufacture electric vehicles. Under this definition, major auto manufacturers whose primary products are gas-powered vehicles are not considered EV companies, even if they have a line of electric cars (or plans to transition to electric).
Top Canadian electric vehicle stocks
Though not as big as the United States or China, Canada’s EV auto market has undergone significant growth, supported by both governmental initiatives and the country’s net-zero emission commitments.
For those looking to buy EV stocks in Canada, here are three to consider.
| Electric Vehicle Stocks | Description |
| Magna International (TSX:MG) | Automobile parts manufacturer that specializes in electric components for EVs |
| NFI Group (TSX:NFI) | Large producer of Zero-Emission Buses (ZEBs) |
Magna International
Headquartered outside Ontario, Magna International (TSX: MG) is Canada’s largest automobile manufacturer and the largest automotive parts supplier in North America, ranking among the top three globally. With more than 60 years of manufacturing experience, Magna supplies a wide range of vehicle body, chassis, powertrain, and advanced mobility systems, and it also assembles complete vehicles for select global automakers.
Magna maintains long-standing partnerships with many of the world’s largest automakers, including those accelerating their electric vehicle transitions. Its product portfolio spans electric drivetrains, electric axle drive systems, autonomous-ready components, and next-generation vehicle technologies, alongside traditional internal combustion platforms that continue to support near-term revenue and cash flow.
After facing industry-wide headwinds in recent years including semiconductor shortages and cost pressures, Magna’s financial performance has shown renewed strength. In the third quarter, the company reported US$10.5 billion in sales, representing a 2% year-over-year increase, driven by stronger global light vehicle production and new program launches. Adjusted earnings rose nearly 4% year over year to US$1.33 per share, supported by improved operating efficiency and share buybacks.
This improved momentum has translated into stronger investor confidence. Magna shares have rallied sharply in recent months and now trade around the $70 range, giving the company a market capitalization of roughly $20 billion. Magna also remains a favorite among income-focused investors, supported by 15 consecutive years of dividend growth and an annualized dividend yield at 3.8%. While the automotive sector remains cyclical, Magna’s scale, diversification, and growing exposure to electric and autonomous vehicle technologies position it as a stable long-term cornerstone in the Canadian EV and automotive landscape.
NFI Group
Headquartered in Winnipeg, NFI Group (TSX:NFI) is a leading North American manufacturer of battery-electric and fuel cell-electric buses, serving transit agencies in more than 150 cities across six countries. Through brands such as New Flyer, MCI, Alexander Dennis, and ARBOC, NFI offers one of the broadest zero-emission bus and coach portfolios in the industry, with its electric vehicles having logged over 180 million service miles.
NFI has been a pioneer in zero-emission transit since 2009, supported by a large global footprint of roughly 50 facilities across 10 countries and about 8,700 employees. This scale and long operating history give the company strong production capacity and deep relationships with transit agencies transitioning away from diesel fleets.
In 2025, NFI showed continued momentum despite operational challenges. The company reported a record backlog of approximately $13.7 billion, reflecting sustained demand for zero-emission buses, and delivered double-digit year-over-year revenue growth in the first half of the year, driven by higher deliveries and improved pricing. Adjusted EBITDA improved, and zero-emission vehicles accounted for a growing share of deliveries. To strengthen liquidity, NFI also secured a new $845 million credit facility.
While execution risks remain—including delivery timing and supply chain pressures—NFI’s sizable backlog, diversified product lineup, and leadership in electric and hydrogen transit vehicles position it as a key Canadian player in public transportation electrification. Its ability to convert backlog into profitable deliveries and expand margins will remain central to its performance going forward.
Investing in foreign electric vehicle markets
Right now, EV stocks with the largest market capitalizations can be found trading on foreign exchanges, primarily in the United States and China. Here are just a few international stocks you might want to consider.
| Electric Vehicle Stocks | Description |
| Tesla (NASDAQ:TSLA) | Largest manufacturer of EVs in the world |
| Lucid Motors (NASDAQ:LCID) | American EV manufacturer best-known for supplying batteries for Formula E race cars |
| NIO (NYSE:NIO) | Large manufacturer of electric SUVs |
Are electric vehicle stocks risky?
Electric vehicle stocks are still very new, and many EV companies are small caps in the initial stages of growth. Because of their novelty, EV stocks will likely experience immense short-term volatility, enough to make risk averse investors squeamish.
While some companies have emerged as clear industry leaders (like Tesla in the U.S. and NIO in China), plenty of others have noble plans but neither the cash flow nor the production output to back them up. That makes EV stocks a little riskier than others (such as blue chips and large caps), as most are still growth stocks.
Are electric vehicle stocks right for you?
If you’re looking for long-term growth potential, and you can ride out short-term volatility and remain focused on your investing goals, then EV stocks might be right for you.
In fact, now might be a great time to invest in the EV market. Rising gas prices, increased concern over environmental damage caused by fossil fuels, and new governmental initiatives and programs to combat climate change have all put pressure on EV companies to manufacture better and more efficient vehicles. As long as a company has the means to produce EVs at a sustainable rate, they’ll likely draw large nets of new customers in the coming years.
As things stand, however, the global EV market accounts for fewer than 9% of all vehicle sales. While many expect that number to increase to 50% by 2030, there are simply too many companies stuck in the beginning stages of production to predict future sales with any certainty.
On the one hand, the uncertainty may present savvy investors with a rare opportunity to get in now before the EV revolution hits its full stride. On the other hand, it means the next few years will likely be filled with short-term price volatility and industry setbacks.
What is certain is EV production is rising. With demand for EVs continuing to increase, it’s likely that EV sales will surpass gas-powered cars by 2035, if not sooner. Investors who can identify companies that will be around in 15 years could see some handsome returns over that period, especially if they buy now while prices are relatively low.