The world’s leading electric vehicle (EV) manufacturer remains tesla (NASDAQ:TSLA)but competition has been increasing from emerging companies such as rivian (NASDAQ:RIVN). Both stocks have seen plenty of ups and downs in 2025, but Rivian will be the best-performing stock this year, with its share price up more than 23% so far this year at the time of writing, compared to a roughly 10% rise for Tesla.
But that’s past performance. Let’s examine which stocks look poised to outperform in 2026.
2025 was a difficult year for Tesla operationally: its revenue fell in both the first and second quarters, as its car deliveries fell. It did see a recovery in revenue and auto deliveries in the third quarter before the end of the federal EV tax credit, although its adjusted earnings per share (EPS) plunged 31% and it felt pressure on gross margin as the sale of 100% margin regulatory credits dried up.
The stock’s performance in 2026 will likely depend on the progress it makes in its robotaxi business. Tesla is currently testing its cybercab business in Austin, Texas, although the pilot is currently limited to a geofenced part of the city and requires a safety driver to be in the vehicle. CEO Elon Musk has said that Tesla’s robotaxis will be fully autonomous in Austin by the end of the year, and he recently reiterated that stance with about three weeks left in the year.
Musk also recently said he is looking to double the size of Tesla’s robotaxi fleet in Austin this month. This would bring the total to about 60 vehicles. However, that figure is far below the 500 cybercabs that Musk previously projected would operate in Austin this year. He also predicted that Tesla would have around 1,000 robotaxis operating in the San Francisco Bay area by the end of 2025, but has not yet received a license to operate in the state of California. However, if Tesla can start delivering on these promises, even if it lags a bit, the stock should have a nice upside going forward.
Rivian made great strides in 2025. It delivered two consecutive quarters of positive gross margins in the first quarter, unlocking a $1 billion capital investment from volkswagenand then was able to shake off tariff and supply chain pressures to also turn a gross profit in the third quarter.
The company has done a great job of reducing the manufacturing cost of its vehicles by revamping the internal design of its SUV and improving its manufacturing process. The biggest key was switching to a zonal architecture system, which greatly reduced the number of electronic control units and wiring in their vehicles. This technology also helped spur its investment and joint venture with Volkswagen.