Tariffs have certainly been on the collective mind of the auto industry. In the U.S., automakers such as Ford Motor Co. (ticker: F) have described recent measures as leveling the playing field, creating the “fairest fight in decades” for domestic brands. General Motors Co. (GM), on the other hand, has taken a more cautious stance, suspending profit guidance until it can better explore the fuller picture.
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Historically, the auto industry has embraced global trade, optimizing production through every opportunity to move parts and labor around the world to keep car prices competitive. U.S. President Donald Trump’s forceful approach to tariffs offers a mix of unpredictability and strategic leverage that is compelling automakers to rethink where and how they build their vehicles.
Electric vehicles, or EVs, once a high-growth sector, continue to face headwinds. China still dominates the supply of critical raw materials like lithium, cobalt and manganese, which are cornerstones of EV battery production. And as automakers race to bring down the cost of EVs for mass-market adoption, Chinese manufacturers such as Xiaomi Corp. (OTC: XIACF) and BYD Co. Ltd. (OTC: BYDDY) are not only accelerating, but moving upmarket.
Tariff pressures have only compounded these challenges. But while these moving parts represent uncertainty, limited relief has been granted: temporary tariff reductions and domestic production incentives, including credits of up to 15% for vehicles assembled in the U.S. These measures give automakers breathing room to realign their supply chains and scale domestic capacity.
Evolution of the Global EV Market
Tariffs may also reshape the global EV market — and China’s dominant position. The U.S. has long viewed China’s EV export expansion with concern. During the first Trump administration, tariffs on low-cost Chinese goods were introduced to protect U.S. industries, and Trump campaigned in 2020 on a promise to further raise them to 60%, despite stiff criticism over inflation and supply chain disruptions. Despite vocally objecting to Trump’s tariffs, the Biden administration ultimately retained them. In May 2024, Biden then quadrupled tariffs on Chinese EVs to 100% and imposed new levies on Chinese semiconductor chips, too. The Inflation Reduction Act of 2022 further complicated the landscape by limiting tax credits for EVs due to sourcing requirements for battery components.
Global car manufacturers were suddenly faced with a steep drop in consumer enthusiasm for EVs after making deep investments, re-tooling production lines and investing significantly in electric battery research and development. Part of this negative consumer sentiment stemmed from a July 2024 McKinsey study that revealed a staggering 46% of EV owners would not repeat their purchase due to range anxiety. Resale values diminished as dealers slashed new car prices to relieve bloated inventories.
This volatility has forced manufacturers to heavily reevaluate their net-zero commitments. But, intense turmoil also creates opportunity.
Intensified competition from China abroad has already driven down EV prices domestically, offering an unexpected advantage for U.S. automakers. Tariffs do keep Chinese automakers from establishing a larger foothold in the U.S., but shielding competition can also keep domestic prices from continuing to fall. More affordable options are making electric vehicles increasingly attractive to younger buyers seeking a balance of sustainability, cutting-edge design and cost-effectiveness. Additionally, heavy competition can incentivize innovation, such as what is occurring with battery range.
In late March 2025, Trump announced a new 25% tariff on Chinese-made automobiles and certain auto parts. But after the two superpowers battled publicly throughout the spring, continually raising tariff percentages on a multiple of goods, negotiations yielded a significant 90-day reduction that went into effect on May 14.
Here are the 10 most valuable auto companies by market capitalization in 2025:
| Car Company | Market Capitalization* | Position Change** |
| 1. Tesla Inc. (TSLA) | $1.1 trillion | ?+0 |
| 2. Toyota Motor Corp. (TM) | $238.7 billion | ?+0 |
| 3. Xiaomi Corp. (OTC: XIACF) | $169.3 billion | ?+0 |
| 4. BYD Co. Ltd. (OTC: BYDDY) | $166.1 billion | ?+0 |
| 5. Ferrari NV (RACE) | $88.9 billion | ?+0 |
| 6. Volkswagen AG (OTC: VWAGY) | $57.9 billion | ?+1 |
| 7. Mercedes-Benz Group AG (OTC: MBGYY) | $56.4 billion | ?-1 |
| 8. Bayerische Motoren Werke AG (BMW.DE) | $53.1 billion | ?+0 |
| 9. General Motors Co. (GM) | $48.4 billion | ?+0 |
| 10. Maruti Suzuki India (MARUTI.NS) | $47.8 billion | New |
*As of May 18.**Since last article update on Mar 24.
10. Maruti Suzuki India Ltd. (MARUTI.NS)
Maruti Suzuki India Ltd. recently entered the ranks of the world’s top automakers by market capitalization, overtaking Stuttgart-based Porsche. Originally founded in February 1981 as Maruti Udyog Ltd., the company was a joint venture between the government of India and Japan’s Suzuki Motor Corp. Suzuki became the first major foreign automaker to invest in India. Although Maruti Suzuki is now a wholly owned subsidiary of Suzuki, the Indian government initially held a 74% stake before gradually divesting its ownership, ultimately selling its remaining shares entirely.
Maruti initially planned to launch its first EV in 2021 but later scrapped the concept. The company debuted the e-Vitara SUV in Milan and began production in 2025. While traditionally focused on compact cars, Maruti Suzuki has broadened its internal combustion engine (ICE) lineup to include larger sedans, SUVs, crossovers, vans and light commercial vehicles.
Today, Maruti Suzuki remains India’s largest car manufacturer, holding around 40% of the passenger vehicle market. Its leadership is underpinned by a wide-ranging portfolio of affordable, fuel-efficient models that appeal to a broad customer base. The company also boasts an expansive distribution network, with nearly 5,000 service touchpoints across more than 2,500 cities, ensuring deep market reach.
In recent years, Maruti Suzuki has also strengthened its global presence. It exported approximately 283,000 vehicles in fiscal year 2024–25, contributing to increased sales volume, diversified revenue streams and enhanced profitability. This strategic international expansion, alongside its domestic dominance and broadening product mix, has solidified Maruti Suzuki’s position as a global automotive leader.
9. General Motors Co. (GM)
Founded in 1908 by William Durant as a holding company for Buick, General Motors quickly grew through a series of acquisitions and went public in 1916. A hallmark of early innovation, GM patented leaded gasoline in 1921 as an anti-knock agent, further solidifying its reputation as an innovator. Once a proud symbol of American industrial strength, GM struggled in the face of globalization. The EV1, its pioneering electric vehicle, failed to gain market traction. In 2009, amid a financial crisis, GM filed for bankruptcy despite receiving $17.4 billion in federal bailouts, an action that ultimately preserved more than 1 million jobs and protected $35 billion in tax revenue. Mary Barra became CEO in 2014, steering GM toward a future defined by electrification and automation. Under her leadership, the company introduced the Chevrolet Bolt and invested heavily in Cruise, its autonomous vehicle division. Today, GM’s core automotive offerings span four major brands: Chevrolet, Buick, GMC and Cadillac.
Despite retaining its ninth position, GM saw a nearly $3 billion decline in value this year. Although it continues to show promising EV performance in Asian markets, GM faces intense competition from Chinese manufacturers. The company has also been significantly affected by recent U.S. tariffs, with only 45% of its American sales coming from vehicles produced domestically. GM has responded with caution, slowing share buybacks and reviewing capital allocation.
Three new models debuted in 2025, including the Lyriq SUV, the Escalade IQ SuV and the Optiq, an entry-level crossover. Their goal is that one of every three Cadillac sells in the U.S. will be all-elective. The red carpet was reserved for the 2025 Celestiq, a custom-commissioned sedan that will debut at $340,000. The Celestiq will be hand-built in Warren, Michigan, and the company will produce just 25 units this year, underscoring its exclusivity. The three-row crossover, Vistiq, will debut as a 2026 model. GM is also investing in next-generation battery technology through its partnership with LG Energy Solution. Together, they are developing lithium manganese-rich (LMR) batteries, which promise up to 400 miles of range while reducing costs and dependency on rare materials.
In a major strategic shift, GM has officially ended funding for Cruise’s robotaxi program following operational setbacks. Instead, the company is channeling its autonomous technology into expanding Super Cruise, its hands-free driving system. By the end of 2025, Super Cruise is expected to be available on 24 GM models, covering more than 1.2 million miles of mapped roads, with a projected 720,000 equipped vehicles on the road. In a bold move into global motorsport, Cadillac has been approved to join the Formula One grid as the 11th team for the 2026 season, the first new team entry since 2016. Cadillac will initially compete using Ferrari power units before transitioning to its own engines, currently under development at facilities in North Carolina and Michigan. While rumors have swirled around Colton Herta as a potential driver, no official signings have been announced yet.
8. Bayerische Motoren Werke AG (BMW.DE)
The BMW Group, headquartered in Munich, Germany, encompasses the BMW, MINI and Rolls-Royce brands, along with a robust motorcycle division and financial services arm. Like many global automakers, BMW has been significantly impacted by the 2025 Trump tariffs, facing per-unit cost increases of nearly $12,000. In response, the company has actively sought negotiations while evaluating the potential to relocate more production to the U.S. to mitigate long-term exposure.
BMW has retained its global ranking with a slight increase in market cap, even as domestic Chinese brands like Xiaomi and BYD continue to erode its market share in mainland China — a region that accounts for nearly one-third of BMW’s global EV sales. In recognition of China’s strategic importance, BMW is investing heavily in local operations, including a major upgrade to its historic Plant Dadong and a new 10 billion-yuan sixth-generation battery facility in Shenyang. These moves support the forthcoming rollout of BMW’s next-generation EV lineup.
At the heart of BMW’s electrification strategy is the Neue Klasse platform, a complete reimagining of the brand’s vehicle architecture rooted in the legacy of the 1960s BMW 1500. Neue Klasse represents a leap forward in digitalization, electrification and sustainability, promising 30% longer range, 30% faster charging and 40% lower drivetrain production costs. The first models to launch — starting with the iX3 SUV and a fully electric 3 Series sedan — will begin production in late 2025 at BMW’s Debrecen plant in Hungary. A high-performance M3 variant is also in development. At the core of these vehicles will be the new “Heart of Joy” control unit, which integrates and optimizes key functions such as drivetrain, braking, steering, energy regeneration and battery management.
While challenges persist in Asia, BMW continues to captivate its premium and luxury audiences with exquisite craftsmanship and forward-thinking design. At the 2024 Monterey Car Week, Rolls-Royce revealed two exclusive models: the pre-sold Phantom Scintilla Private Collection and Spectre Semaphore EV, its first and only electric model. The brand is also seeing unprecedented growth in the Middle East and North Africa (MENA), driven by demand for highly customized vehicles.
BMW itself drew attention at Monterey with the auction of a one-of-a-kind 2025 M5 finished in Frozen Orange metallic and gold brake calipers, which raised $280,000 for charity. Simultaneously, it unveiled the M5 Touring plug-in hybrid for the U.S. market. Priced at $125,275, the new long-roof model weighs over 1,100 pounds more than its predecessor, raising initial concerns. However, its 717-horsepower powertrain and dynamic engineering have won over M enthusiasts. Looking to 2026, BMW will reassert its motorsport credentials with the return of the M2 to racing, part of a broader recommitment to high-performance innovation and brand heritage.
7. Volkswagen AG (OTC: VWAGY)
Founded in 1937 and headquartered in Wolfsburg, Germany, Volkswagen built its legacy on iconic vehicles like the Beetle and the beloved Microbus — reimagined in 2022 as the all-electric “ID.Buzz.” Today, the Volkswagen Group oversees a portfolio of prestigious brands, including Audi, Porsche, Lamborghini, Bentley and Ducati, while continuing to evolve through electrification, digitalization and global restructuring.
Like many European automakers, Volkswagen is grappling with the effects of the 2025 U.S. tariffs, which are projected to increase per-unit costs by up to $11,894. In response, the company has instituted import fees on affected models and is actively considering shifting more production to the U.S. to stay competitive in its largest export market.
Volkswagen recently slipped from No. 6 to No. 7 in global automaker rankings, narrowly trading places with Mercedes-Benz Group. While this change reflects only a modest shift in market capitalization, it underscores deeper structural challenges. The company’s share price has remained stagnant amid ongoing internal restructuring. Cost-cutting measures were ramped up in 2024 in response to sluggish EV adoption, intensifying Chinese competition, and continued disruptions from the Russia-Ukraine war. Prolonged labor negotiations led to significant reductions in production capacity and workers, moves aimed at restoring Volkswagen’s financial flexibility.
Despite these headwinds, Volkswagen remains committed to electrified performance and affordability. The company is preparing to unveil the ID.2all, an electric vehicle priced under 25,000 euros ($28,335) and intended to replace the popular Golf by late 2025 as a 2026 model. A sportier companion, the ID.3 GTI, is also in the pipeline, offering around 335 horsepower and surpassing the performance of the current ID.3 GTX.
To regain momentum in China, Volkswagen and its sub-brand Jetta have announced plans to launch 11 new models in 2026. The lineup will include six battery electric vehicles, two plug-in hybrids, two extended-range EVs and one internal combustion engine model. Volkswagen has set a target to sell 4 million vehicles annually in China by 2030. Looking ahead, the company is also evaluating development of a Scout-based off-road EV, aimed squarely at competing with Land Rover’s Defender, a strategic move blending legacy design with rugged electrification.
Volkswagen has also embraced key partnerships to accelerate its transformation. The company has committed over $5 billion to a collaboration with Rivian Automotive Inc. (RIVN) to develop next-generation EV software and technology. This partnership is expected to yield affordable yet cutting-edge vehicles, including the forthcoming ID Every1, slated for a European debut by 2027. Additionally, Volkswagen has expanded its relationship with XPeng Inc. (XPENG) in China to deploy 20,000 ultra-fast EV charging piles across 420 cities. Unlike traditional charging stations, these stand-alone units can be installed in homes, commercial spaces and public areas. XPeng, which introduced the world’s first AI-defined vehicle in late 2024, is viewed as a key strategic ally in Volkswagen’s efforts to future-proof its EV roadmap.
6. Mercedes-Benz Group AG (OTC: MBGYY)
With corporate roots dating back to 1886, Mercedes-Benz Group stands as a premier name in the luxury automotive sector. Known for its prestigious Mercedes-Benz, AMG, Maybach and EQ brands, the German automaker has been working to reclaim its status in the high-end market following a period of underwhelming stock performance.
Mercedes-Benz recently regained its No. 6 position, buoyed by a $5 billion increase in market share. However, like its peers, the company continues to grapple with geopolitical headwinds. CEO Ola Källenius has emerged as a leading voice in calling for stronger EU-China economic ties, seeking to ease tensions and reduce retaliatory tariffs that threaten to intensify challenges for the European auto sector. Mercedes, along with BMW, faces significant cost pressures from the new U.S. tariffs. In response, the company plans to mitigate per-unit cost increases by producing the GLC SUV at its Alabama facility by 2027.
Electrification remains at the heart of Mercedes-Benz’s strategic vision. Flagship EVs such as the off-road-capable G-Class G580 and the high-performance AMG GT 63 S aim to compete directly with models like the Porsche 911 Turbo S. The company has expanded its “Mercedes me Charge” network to over 2 million global charging points. Its latest electric model, the CLA, features a sweeping “superscreen” dashboard and advanced driver-monitoring capabilities. Marketed as the “cleverest car” Mercedes has built, it detects driver attentiveness to enhance safety. However, its 800V charging architecture lacks a DC-to-DC voltage booster, rendering it incompatible with 400V charging stations. This trade-off was likely made for cost-efficiency, but it severely limits charging accessibility. At Auto Shanghai 2025, Mercedes also debuted the Vision V, a luxury electric van concept that will headline its forthcoming “Grand Limousines” range.
The company is preparing to unveil its first Purespeed model, which will be a limited-edition, roofless and windshield-free speedster developed with Pininfarina. The vehicle integrates the Formula 1-style halo safety device and will launch as the flagship of the new Mythos series: a collection of low-volume, ultra-exclusive vehicles with high profit margins.
In motorsport, the 2025 Formula One season opener saw the high-profile departure of Lewis Hamilton to Ferrari, with George Russell stepping up as Mercedes’ lead driver. However, Russell has voiced concern over the car’s declining performance in high-heat conditions. In a nod to its racing heritage, Mercedes will debut a historic silver livery at the 2025 24 Hours of Le Mans, its first appearance at the legendary race in 26 years. The Iron Lynx team, now racing Mercedes-AMG LMGT3 cars after switching from Lamborghini, will campaign three entries in this year’s endurance classic coming up in mid-June. The livery pays tribute to the 1989 Le Mans-winning Sauber C9.
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5. Ferrari NV (RACE)
Founded in 1947 and headquartered in Maranello, Italy, Ferrari remains one of the most globally recognized luxury brands. With a focus on exclusivity, it maintains a low-volume, high-profit strategy that has helped it retain its No. 5 global ranking, boosted by a nearly $10 billion rise in market capitalization.
CEO Benedetto Vigna is steering the brand toward a younger demographic, with buyers under 40 now accounting for 40% of sales, a significant year-over-year increase. Strong demand for models like the SF90XX, 12Cilindri and 499P Modificata led to a 17% increase in net profit in Q1 2025.
Ferrari famously avoids traditional advertising, leaning instead on its racing pedigree to drive desirability. While the signing of Lewis Hamilton for the 2025 Formula One season initially excited markets, results have lagged. Both Hamilton and fellow teammate Charles Leclerc struggled at the Emilia Romagna Grand Prix, failing to reach Q3 amid concerns over car performance and design shortcomings.
In endurance racing, however, Ferrari has shined. It claimed a third consecutive win in the FIA World Endurance Championship at Spa-Francorchamps on May 10 with a 1-2 finish by the 499P Hypercar team. Ferrari is poised for a significant presence at the 2025 24 Hours of Le Mans, aiming for its third consecutive overall victory at the Circuit de la Sarthe in France.
Looking ahead, Ferrari will debut six new models, including its first fully electric vehicle, set to launch on Oct. 9 at a price point of $535,000. The EV is being developed at a new facility near Maranello and features a next-gen, solid-state, lithium-metal battery from U.S.-based Factorial Energy. The battery is expected to deliver 25% greater range, with Ferrari exploring ways to reduce production costs as it aims for EVs and PHEVs to make up 60% of its sales by 2026. Ferrari’s CEO noted that U.S. tariffs could affect 2025 margins by up to 50 basis points.
4. BYD Co. Ltd. (OTC: BYDDY)
Founded in 1995 by Wang Chuanfu in Shenzhen, China, BYD (an acronym for “Build Your Dreams”) began as a mobile battery manufacturer before evolving into a diversified leader in electric vehicles, trucks, buses, solar panels and monorails. Since shifting exclusively to EV production in 2022, BYD has relied on vertical integration to control its battery supply chain, mirroring Tesla’s strategy. Its deep in-house expertise in batteries and power electronics remains central to its success.
In 2024, BYD produced more than 4.3 million new energy vehicles (NEVs), marking a 41% year-over-year increase. The company added another $10 billion to its market capitalization, maintaining its No. 4 global ranking. BYD further strengthened its international logistics by launching the BYD Shenzhen, the world’s largest car carrier. Capable of transporting 9,200 vehicles, the ship began its maiden voyage on April 27, delivering over 7,000 NEVs from China to Brazil, a market where BYD saw 328% growth in 2024.
A major milestone came on March 17, when BYD unveiled its 1,000V Super E-Platform. The system enables ultra-fast charging, up to 292 miles of range in five minutes, using a 1,000 kW infrastructure. This brings charging times in line with traditional gasoline refueling. The first vehicles equipped with the new battery tech, the upgraded Han L and Tang L, are priced around $40,000, marking BYD’s move into more premium territory. To support this rollout, BYD plans to deploy more than 4,000 ultra-fast charging stations across China. The system is powered by in-house silicon carbide chips and BYD’s advanced Blade lithium iron phosphate battery, known for its safety and efficiency. BYD is also expanding access to autonomy. Its “God’s Eye” driver-assistance system, featuring remote parking and autonomous lane changes, is being integrated across the lineup, including entry-level models like the Seagull.
While BYD operates electric bus and truck facilities in California, U.S. tariffs have blocked its passenger vehicle entry. Instead, the company is focusing on Europe, opening a new hub in Hungary for sales, after-sales service, vehicle testing and localized model development. This aligns with BYD’s target to sell half of its vehicles outside China by 2030, with growing traction in Europe and Latin America. One key product to watch is the BYD e7, a budget-friendly electric sedan starting at roughly $14,400. Designed for the shared mobility market, it represents BYD’s push into affordable EVs for younger, cost-conscious consumers, expanding access while disrupting the lower end of the market.
3. Xiaomi Corp. (OTC: XIACF)
Headquartered in Beijing and founded in 2010 by serial entrepreneur Lei Jun, Xiaomi rose rapidly to become the world’s second-largest smartphone maker after Samsung. Often dubbed the “Apple of China,” it became the youngest company to join the Fortune Global 500 and went public on the Hong Kong Stock Exchange in June 2018.
Xiaomi entered the EV market in 2021 with a $10 billion investment — and it’s paying off. In 2024, Xiaomi debuted on the market capitalization leaderboard at $57.3 billion and closed the year ranked No. 3 globally among automakers. As of May 2025, its market cap sits at $169.33 billion, representing a $54 billion year-over-year increase despite a slight dip from its March numbers. Alongside BYD, Xiaomi is putting intense competitive pressure on both domestic and international EV rivals.
Its EV division exceeded expectations by delivering 135,000 SU7 electric sedans in 2024, more than double its original target. In April 2025 alone, it posted over 28,000 deliveries, the seventh-straight month surpassing the 20,000 mark. With this momentum, Xiaomi continues to raise its projections and aims to become one of the world’s top five automakers. On May 22, the company will unveil the YU7, its first electric SUV. This midsize crossover is aimed squarely at competitors like Tesla’s Model Y. Xiaomi’s existing manufacturing infrastructure has enabled it to scale production efficiently and cost-effectively.
Xiaomi’s transition into EVs is seen as a bold, but calculated, diversification beyond its consumer electronics roots. Its strength lies in ecosystem integration: MIUI, IoT devices, and AI features are being embedded into its vehicles, positioning it as a true “tech automaker” in the same vein as Tesla. This vision helped Xiaomi earn a spot on Time magazine’s 2024 list of Most Influential Companies and fueled a 50% surge in its Shenzhen-listed stock over the past six months.
Despite its EV success, Xiaomi continues to innovate in smartphones. In March 2025, it launched a fully automated “dark factory” in Changping that’s capable of producing one smartphone per second without human labor, running 24/7 with AI-driven precision. The company will also debut its new flagship smartphone, the Civi 5 Pro, on May 22. The device features a Snapdragon 8s Gen 4 chip, a 6.55-inch quad-curved OLED display and a Leica-engineered triple camera setup. From mobility to mobile, Xiaomi is redefining what it means to be a tech giant in the 21st century.
2. Toyota Motor Corp. (TM)
Toyota, founded in 1933 and headquartered in its namesake city in Japan’s Aichi Prefecture, has long been synonymous with reliability and innovation. While it once held the title of the world’s most valuable automaker, it was overtaken by Tesla in 2020. Today, Toyota maintains a strong global presence, including well-known marques such as Lexus, Subaru and Suzuki.
The company has held steady at the No. 2 position in global market capitalization, though it has seen a $14 billion decline since March 2025. Despite achieving record annual sales of $333.6 billion in the fiscal year ending March, Toyota is bracing for a 21% drop in operating profit. This downturn is driven by a combination of $1.3 billion in U.S. tariff impacts, $5 billion in foreign exchange losses and over $2 billion in rising material costs. CEO Koji Sato has indicated that price adjustments are on the table to offset these pressures, although market response will dictate whether further corrections are necessary.
Even amid financial headwinds, Toyota continues to invest aggressively in new products. The company recently revealed the bZ Woodland, a rugged all-electric SUV for the North American market slated for release in early 2026. It features 375 horsepower, all-wheel drive and a 260-mile range. Additionally, the C-HR+, a compact electric crossover, will launch in both Europe and North America by late 2025.
Toyota revolutionized the auto industry with the Prius, one of the world’s first mass-market hybrids. Though once celebrated by environmentalists, the company faced growing criticism in recent years for not fully committing to EVs. Chairman Akio Toyoda has consistently defended Toyota’s broader approach, arguing that EVs will make up only about 30% of global vehicle demand, with hybrids, hydrogen fuel cells and alternative fuels playing essential roles in sustainable mobility.
In response, Toyota has leaned into its hybrid legacy with renewed focus. The 2024 Prius redesign earned praise for its sleek styling and 57 mpg efficiency, and the model has now been rebranded as the Prius PHEV for 2025. Toyota has since announced a broader phaseout of internal combustion-only models across the Toyota and Lexus lines, in favor of hybrid and plug-in hybrid options. Furthering its electrification push, Toyota’s North Carolina battery plant will begin production this spring, supporting its goal of offering 32 electrified models and moving closer to a carbon-neutral future.
While Toyota expands its electric offerings, it continues to provide powertrain flexibility to meet evolving consumer needs. The sixth-generation 4Runner, the SUV’s first full redesign in 15 years, includes both traditional gas and hybrid versions, with hybrid production beginning in February.
Backed by more than 20 years of hybrid experience, Toyota’s pre-owned hybrid vehicles continue to lead in reliability and resale value, reinforcing the brand’s enduring reputation for quality, efficiency and longevity.
1. Tesla Inc. (TSLA)
Tesla continues to captivate as it evolves from its early days with its sublime Roadster into a diversified mobility and energy conglomerate. Now producing everything from EVs to semitrucks and advanced battery storage systems, Tesla has positioned itself as a tech-driven force for renewable energy and AI.
Under CEO Elon Musk’s leadership, Tesla’s market capitalization has soared, doubling from $689.6 billion in August 2024 to nearly $1.4 trillion in January 2025, the first time an automaker has surpassed this milestone. Yet, much like one of SpaceX’s rockets, gravity began pulling Tesla back from the stratosphere. Tesla’s valuation later dipped below $1 trillion following a wave of political backlash tied to Musk’s controversial role as head of the Trump administration’s Department of Government Efficiency (DOGE). The FBI documented incidents involving arson, gunfire and vandalism against both Tesla dealerships and individual vehicles, both in the U.S. and abroad. These incidents caught the attention of insurers, especially in wildfire-prone California, where the Model 3, Y and X became the most expensive EVs to insure. Though these disruptions affected sentiment, some analysts argue the root cause of Tesla’s downturn was more complex.
A more complete explanation lies with the Tesla Takedown protests coinciding with the the rising competitive pressure from Chinese EV makers Xiaomi and BYD. Both companies have mounted aggressive global expansion strategies that rapidly gained ground and siphoned demand directly from Tesla, particularly in export markets. Tesla’s China deliveries dropped 49% year over year in February 2025, as domestic brands captured growing consumer interest.
Despite these challenges, Tesla has rebounded, with its market capitalization climbing back above $1 trillion. Musk recently announced he would scale back his involvement with DOGE to refocus on Tesla and his private ventures, including the sale of social media platform X to his AI company xAI.
While Tesla continues to hope its global brand appeal holds, the next decade will test its ability to innovate faster and compete with these aggressive challengers. China is the world’s largest EV market and Tesla is already responding with key product upgrades to hold Xiaomi and BYD at bay.
— The Model Y Juniper refresh, featuring updated styling and interior enhancements.
— An upgraded 2025 Model 3 RWD with a larger battery to compete directly with the BYD Seal.
While the redesigned Model Y garnered 50,000 pre-orders on day one, deliveries have languished contributing to a 13% decline in overall Q1 2025 deliveries, the lowest since Q2 2022. Tesla is also emphasizing the Cybertruck rollout and Gigafactory optimization to regain production momentum.
In a notable move, Tesla has partnered with Chinese firms to advance its Full Self-Driving (FSD) software. It also received a permit to begin a California-based taxi pilot, starting internally with Tesla employees. However, the regulatory process to receive final approval is long and daunting. Meanwhile, a limited, invitation-only robotaxi trial in Austin, Texas, featuring 10 to 20 cars and supported by remote tele-operators, signals Tesla’s growing ambitions in autonomous mobility. Complementary innovations include Optimus, Tesla’s humanoid robot, and AI-driven robotics initiatives.
In January, 2025, Tesla filed a patent for a next-generation 4680 lithium iron phosphate (LFP) battery that is expected to disrupt America’s dependency on foreign battery supplies, most notably from China. China had long dominated the global LFP battery market, with Chinese-owned Contemporary Amperex Technology Co. Ltd. (300750.SZ) being the largest producer of LFP batteries. The LFP cells use iron and eliminate cobalt, nickel and aluminum. Cobalt is one of the most costly rare earth minerals used in batteries and is often mined inhumanely. CATL’s patents are expiring, which gives Tesla the toehold it needs. Investors hope this breakthrough will pave the way for a $25,000 Model Y, which will debut in Shanghai and primarily target the Chinese market.
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Update 05/21/25: This story was previously published at an earlier date and has been updated with new information.
