For years, electric vehicle (EV) stocks have been mostly compared to traditional automotive stocks. But there’s a growing interest in viewing electric car companies not just as manufacturing businesses but as artificial intelligence (AI) businesses. That’s because, after decades of false promises, fully autonomous vehicles may finally be just around the corner — a future made possible due to rapid advancements in AI.
These EV stocks are all betting on software — specifically, AI-driven software — to fuel growth in the future. All three stocks are potential buys for the right investor. In fact, one of these stocks is my top growth stock to buy in 2026.
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Image source: Tesla.
1. Tesla is betting the most on AI
When it comes to investing in AI, no EV company can match the aggressiveness of Tesla(NASDAQ: TSLA). Tesla has been investing in AI for many years, culminating in a $2 billion investment in xAI — another Elon Musk start-up — in January.
Tesla’s investments in AI have a clear end goal: enabling Tesla vehicles to achieve full self-driving potential. The company has already launched a pilot version of its robotaxi business in Texas. The robotaxi market alone, according to some experts, could eventually be worth $5 trillion or more globally. When Tesla announced its investment in xAI, the company also confirmed that production of its Cybercab EV — a low-cost EV that will help it rapidly expand its robotaxi business — remains on track to begin by the end of 2026.
With a $1.2 trillion market cap, much of Tesla’s potential benefit when it comes to its AI bets is likely already priced into the stock. That’s especially true when you compare the company’s rising valuation against its declining automobile sales. As Reuters recently put it, “Tesla is ‘entering a transition phase’ where it is asking investors to underwrite potential revenue from self-driving software in its cars and robotaxi business before auto sales recover.”
Whether Tesla is a wise investment at this price point is debatable. But its aggressiveness in investing in AI cannot be questioned.
2. This EV stock has maximum growth upside potential
When it comes to raw upside potential, few stocks can match Lucid Group(NASDAQ: LCID). The company is currently valued at just $3.8 billion — just 0.3% the size of Tesla.
Earlier this year, Lucid began selling a new vehicle, its luxury Gravity SUV. And over the next few years, it expects to start selling three new affordable models, plus a competitor to Tesla’s Cybercab. In the long term, the company has made it clear that it intends to invest heavily in AI and self-driving capabilities.
There’s just one issue: Despite its ambitions, Lucid’s diminutive size severely caps its ability to invest heavily in these areas. So while I respect the company’s vision, I worry that the share dilution needed to fund these investments along the way will completely wipe out minority investors’ ability to profit.
If you’re looking for a business with big upside and the ability to invest appropriately on AI, check out the stock below instead.
3. Rivian is my favorite EV stock for 2026
Rivian’s (NASDAQ: RIVN) $20 billion valuation still gives it plenty of long-term upside potential when compared to behemoth competitors like Tesla. But its ability to raise capital without overly diluting shareholders is far greater than Lucid Group’s ability. Its existing multibillion-dollar partnerships with peers like Volkswagen further highlight its respect within its industry for producing software that other automakers crave to imitate or own.
Why is Rivian my top pick on this list? Its AI ambitions are clear. In December, the company outlined its full AI vision, which includes bringing AI more heavily into its production facilities, into its in-car driving experience, and even into its product lineup; long-term, Rivian hopes to produce its own AI chips.
One of the best tools for advancing AI technology is real-world data. Tesla has millions of vehicles on the road, aggregating data every day. Lucid’s limited lineup caps its ability to generate data. Rivian, however, should begin deliveries of its R2 SUV model next month — its first vehicle priced under $50,000. This should help it scale production greatly, giving it significantly more data to work with.
With a market cap slightly under $20 billion, Rivian is the best balance of risk and reward on this list.
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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.
