Not so long ago, with electric vehicle adoption topping 20%, it seemed like automakers’ biggest hurdle was simply getting bigger and better EVs to market cheap enough to compete with Chinese brands. Alas, they misread consumer enthusiasm.
Bank of America’s June “Car Wars” report made that painfully clear. Analyst John Murphy said the industry’s outsized bet on EVs failed to deliver. Automakers poured billions into retooling factories, accelerating battery research and development, and expanding EV lineups — only to watch the market respond negatively. The backlash accelerated after President Donald Trump signed the One Big Beautiful Bill Act into law in July, speeding the phase-out of federal EV subsidies.
The average transaction price for new vehicles rose above $50,000 for the first time in September, according to Kelley Blue Book. Car-shopping website Edmunds reported last month that nearly 20% of shoppers were taking on monthly payments above $1,000, and 22% of borrowers were stretching to 84-month loans. Unsurprisingly, many households stuck with aging cars or turned to the used market.
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Then the market shifted again. As intended, Trump’s tariffs helped Tesla Inc. (ticker: TSLA) and General Motors Co. (GM) surge. Tesla’s market cap shot from $1.1 trillion to $1.4 trillion in three months. GM vaulted from ninth to fifth place, adding $17.9 billion. Meanwhile, China’s Xiaomi Corp. (OTC: XIACF) and BYD Co. Ltd. (OTC: BYDDY) shed a combined $45.8 billion.
Stunned executives got the message. Automakers are now doubling down on hybrids, widening consumer choice across internal combustion, hybrid and EV powertrains. They’re trimming costs through innovation, partnerships and supply-chain restructuring. Even their investments in “connected ownership” technology are being rebalanced with a return to simpler, more tactile cabin interfaces.
Affordability, flexibility and connectivity were supposed to define the rest of 2025. Instead, survival will hinge on how fast each brand can pivot.
Here are the 10 most valuable auto companies by market capitalization in 2025:
| Company | Market Capitalization* | Position Change** |
| 1. Tesla Inc. (TSLA) | $1.4 trillion | ? 0 |
| 2. Toyota Motor Corp. (TM) | $259.7 billion | ? 0 |
| 3. Xiaomi Corp. (OTC: XIACF) | $135.2 billion | ? 0 |
| 4. BYD Co. Ltd. (OTC: BYDDY) | $126.1 billion | ? 0 |
| 5. General Motors Co. (GM) | $69.7 billion | ? 4 |
| 6. Ferrari NV (RACE) | $68.6 billion | ? 1 |
| 7. Mercedes-Benz Group AG (OTC: MBGYY) | $66.1 billion | ? 0 |
| 8. Bayerische Motoren Werke AG (BMW.DE) | $63.3 billion | ? 2 |
| 9. Volkswagen AG (OTC: VWAGY) | $58.9 billion | ? 1 |
| 10. Maruti Suzuki India Ltd. (MARUTI.NS) | $56.5 billion | Returning |
*As of Dec. 1.
**Since last article update on Aug. 14.
10. Maruti Suzuki India (MARUTI.NS)
Headquartered in New Delhi, Maruti Suzuki is India’s largest automaker and is a subsidiary of Suzuki Motor Corp. (OTC: SZKMF). It built its reputation on fuel-efficient hatchbacks and practical family SUVs that dominate the country’s price-sensitive passenger car market. The Maruti name predates Suzuki’s ownership: The company originally began in 1971 under Sanjay Gandhi, son of Prime Minister Indira Gandhi. In 1980, after his death in a plane crash, the Indian government stepped in to finalize the partnership with Suzuki.
Long the country’s automotive bellwether, Maruti Suzuki’s mix of affordability and reliability keeps buyers loyal. In October, it posted 7% sales growth, reaching 2,220,894 units. The Grand Vitara continues to anchor its SUV lineup as demand grows for high-mileage, feature-rich models. Strong export performance has lifted its global profile, too. India’s passenger-vehicle exports rose 18% from April to September, with Maruti Suzuki shipping 205,763 vehicles, a 40% increase.
9. Volkswagen AG (OTC: VWAGY)
Volkswagen, headquartered in Wolfsburg, Germany, has cultivated customer loyalty since 1937 through iconic cars like the Beetle and the Golf. Its R&D capabilities helped reimagine the beloved Microbus as the all-electric ID Buzz, which won the 2025 North American Utility Vehicle of the Year award. Volkswagen’s parent group manages a powerhouse portfolio: Audi, Porsche, Lamborghini, Bentley, ?koda, Seat, Cupra and Ducati. Yet the company continues to grapple with the long-lasting fallout of the 2015 Dieselgate scandal, which has cost $34.8 billion and counting.
Today, Volkswagen faces tough internal pressures: infrastructure challenges, labor disputes and governance constraints that slow its ability to exit costly domestic plants. It has paused most upcoming EV launches, including the Golf successor, the ID.2. Its collaboration with XPeng Inc. (XPEV) has also slowed, though the Turing AI chip still appears on track for China in 2026. Moody’s downgraded Volkswagen’s credit rating from A3 to Baa1 in March, citing internal strain, Chinese competition and tariff uncertainty.
8. Bayerische Motoren Werke AG (BMW.DE)
Munich-based BMW oversees the BMW, Mini and Rolls-Royce brands, along with a robust motorcycle lineup and financial services. Tariffs have hit BMW, but its deep roots in Spartanburg, South Carolina, have secured expanded production.
BMW continues major investments in local operations. It upgraded the historic Plant Dadong a few years ago, and a new 10 billion-yuan sixth-generation battery facility in Shenyang is set for 2026. These efforts anchor the company’s long-term strategy centered on the Neue Klasse platform, a modern reinvention inspired by the classic 1960s BMW 1500. Neue Klasse targets 30% longer range, 30% faster charging and 20% lower production costs. The first models, the iX3 SUV and an all-electric 3 Series, began production in October at BMW’s Debrecen plant in Hungary, with an M3 variant underway.
7. Mercedes-Benz Group AG (OTC: MBGYY)
Mercedes-Benz Group, one of the oldest names in luxury autos, has been working to regain momentum after a stretch of weak stock performance. Known for Mercedes-Benz, AMG and Maybach, the company is refining its electrification strategy while reintroducing classic tactile controls in response to customer demand.
The Mercedes Me Charge network now includes over 2 million global charging points, and the company is transitioning to MB.Charge Public, a broader platform. In November, it opened a high-power charging station at a Starbucks store in Red Bluff, California, through a retail partnership. Chargers support both NACS and CCS, opening access to non-Mercedes vehicles.
The company also recently unveiled Experimental Lade Fahrzeug, a mobile charging lab designed to speed charging and allow EVs to transfer energy by turning them into mobile power plants. Mercedes is also expanding the G-Class family with a compact “Baby G-Wagen” SUV planned for 2027. Alongside these moves, the company is striking a balance between advanced digital interfaces and the return of traditional buttons and switches.
6. Ferrari NV (RACE)
Ferrari, founded in 1939 and headquartered in Maranello, Italy, operates on a premium-priced, low-volume, high-margin strategy that has long delivered strong financials. The stock hit a record $519 in July, but it plunged more than 15% in a single day in October after investors balked at the company cutting its EV targets in half and projecting a more cautious 5% compound annual growth rate through 2030. Tariffs forced Ferrari to raise prices on some of its U.S. models by up to 10%, fueling fresh concerns over volume and margins, though it has recently trimmed some of those increases.
Ferrari tried to soften the blow with the debut of its first EV, the $535,000 Ferrari Elettrica. While investors chafed at the move, Ferrari’s signature demographic embraced it. The 1,000-horsepower supercar uses four electric motors — one at each wheel — to deliver a 330-mile range. It also offers zero-to-60 miles-per-hour acceleration of less than 2.5 seconds.
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5. General Motors Co. (GM)
Founded in 1908, GM grew through aggressive expansion before struggling with globalization and ultimately filing for bankruptcy in 2009. Under CEO Mary Barra, GM revitalized its core brands — Chevrolet, Buick, GMC and Cadillac — before making a deep push into EVs. Although GM shares declined from November 2024 through the first quarter of 2025, they quickly rebounded, capitalizing on tariff-driven advantages against Chinese competitors and opening new doors in crowded Asian markets.
GM expects EVs to buoy U.S. sales by 300,000 units. The company reduced battery costs, broadened its EV lineup and scaled production, aiming for profitability through models like the Hummer EV, Silverado EV and Cadillac Lyriq. More than $4 billion has gone into Ultium battery plants in Ohio, Tennessee and Michigan.
Despite its EV ambitions, GM also affirmed a return to small-block V8 production in 2027 with an $888 million investment in its Tonawanda propulsion plant in Buffalo, New York. Cost-cutting is a priority: Tariffs hit 3,100 suppliers tied to Mexico, Canada and Asia. Slower EV adoption also triggered 1,140 permanent layoffs at Detroit’s Factory Zero site, effective in January 2026.
4. BYD Co. Ltd. (OTC: BYDDY)
Founded in 1995 in Shenzhen by Wang Chuanfu, BYD evolved from a battery maker into a dominant EV manufacturer. The company shifted entirely to EV production in 2022, leaning on Tesla-like vertical integration to control battery and power electronics supply chains. BYD commands 23% of China’s EV market and recently launched the BYD Shenzhen, the world’s largest car carrier, capable of transporting 9,200 vehicles. Its maiden voyage delivered more than 7,000 cars to Brazil, where BYD saw 328% growth in 2024.
BYD is expanding upward with a new flagship third-row SUV, code-named Dynasty-D, positioned above the Sealion 8. Tariffs have completely blocked BYD’s U.S. passenger-vehicle entry, redirecting its international focus toward Europe. BYD aims to sell half its vehicles outside China by 2030.
Explosive growth has also brought problems, including recalls, fire risks, labor issues and environmental concerns. Revenue is down only 3%, but profitability has collapsed 33%. Domestic sales are slipping, and the company cut its 2025 sales target. Berkshire Hathaway Inc. (BRK.A, BRK.B) has now fully exited its BYD stake, locking in earlier significant gains.
3. Xiaomi Corp. (OTC: XIACF)
Founded in 2010 by Lei Jun, Xiaomi rose rapidly to become the world’s second-largest smartphone maker. It entered the EV market in 2021 with a $10 billion investment that paid off quickly. Xiaomi debuted on the automotive market-cap leaderboard at $57.3 billion in 2024, rising to $174.8 billion by August 2025.
The past three months, however, have been brutal. Xiaomi and BYD pushed aggressive pricing to undercut rivals, but these competitors have responded in kind. Xiaomi’s shares slid to a seven-month low amid concerns about rising chip costs, reduced Chinese tax incentives and heavy U.S. tariffs.
Still, Xiaomi notched a major milestone: Its EV division turned a profit for the first time in Q3 2025. And in late November, the company hit its 2025 goal of 350,000 EV deliveries early.
2. Toyota Motor Corp. (TM)
Founded in 1937 and headquartered in its namesake Japanese city, the company has long been synonymous with quality, dependability, durability and innovation. Once the most valuable automaker in the world, Toyota lost that title to Tesla in 2020 but retains a massive global footprint, including Lexus, Subaru and Suzuki. It held the No. 2 position in market cap and added almost $7 billion over the recent quarter.
Toyota faces the same headwinds as other foreign automakers: sluggish EV demand, tariffs, foreign-exchange losses and rising materials costs. Already a major U.S. manufacturer, Toyota is expanding its stateside footprint with a $10 billion, five-year investment, including a $912 million plan for West Virginia, Kentucky, Mississippi, Tennessee and Missouri.
Toyota revolutionized the auto industry with the Prius. Now that the global EV trend has cooled, the company is leaning hard back into its two-decades-long hybrid legacy with renewed confidence.
1. Tesla Inc. (TSLA)
Tesla, which once captivated consumers with its Roadster, is now a diversified mobility and energy conglomeration. Under CEO Elon Musk, the company maintains immense brand influence, early-market dominance and cult-level investor loyalty. Shares are up about 70% over the past 12 months, pushing the company’s market cap to historic highs.
Despite political roiling around Musk’s short-lived role leading the Trump administration’s Department of Government Efficiency, Tesla shareholders approved his eye-popping, 10-year, $1 trillion compensation package in early November. To earn the full payout, Musk must hit milestones that include an $8.5 trillion market cap and delivery of 20 million vehicles annually, targets he fully intends to chase on his way to becoming the world’s first trillionaire.
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Update 12/02/25: This story was previously published at an earlier date and has been updated with new information.
