These electric car stocks might overtake Tesla. According to Fortune Business Insights, the worldwide electric vehicle industry might expand by 24.3% per year from $287.4 billion in 2021 to $1.3 trillion in 2028. Tesla Inc. (NASDAQ: TSLA) is the undisputed leader in the electric vehicle market, but it has had no competition until recently. Best Rival Stocks to Buy for Tesla Competitors EV startups and traditional automakers are already bringing new EV models to the market, and according to Bank of America analyst John Murphy, Tesla’s EV market share will shrink from 70% to 20% in the next three years.
Here are the 7 Best Rival Stocks to Buy for Tesla Competitors, according to Bank of America.
1. Rivian Automotive Inc. (RIVN)
Rivian Automotive is a pure-play electric vehicle firm that went public in November 2021 and started delivering its first R1T electric pickup trucks in December. Rivian’s share price first climbed as high as $170 after pricing its IPO shares at $78, before falling all the way to closing at $62.65 on Feb. 14.
Rivian has several notable sponsors, including Amazon.com Inc. (AMZN) and Ford Motor Co. (F), both of which possess significant minority shares in the company. Best Rival Stocks to Buy for Tesla Competitors According to Murphy, Rivian’s well-defined business model and direct-to-consumer sales approach make it a top EV startup stock. RIVN stock gets a “buy” rating and a $170 price target from Bank of America.
2. Nio Incorporated (NIO)
Nio shares have been under pressure in recent months as a result of the weakening of Chinese firms listed in the United States. Chinese officials are tightening down on tech firms, while US regulators are threatening to delist Chinese stocks that do not adhere to stringent new accounting norms.
Nio recorded 9,652 car deliveries in January, a 33.6% increase over the previous year. According to analyst Ming Hsun Lee, Nio is showing strong demand momentum ahead of the debut of three new car models in 2022. Best Rival Stocks to Buy for Tesla Competitors, NIO stock, which closed at $23.79 on February 14, has a “buy” rating and a $65 price target from Bank of America.
3. The Lucid Group, Inc. (LCID)
Lucid Group Inc. is an EV pure play that went public in July 2021 via a special-purpose acquisition company merger. Best Rival Stocks to Buy for Tesla Competitors, Despite just 360 cars delivered in the first quarter, Lucid announced well over 30,000 bookings for its Lucid Air sedan, the 2022 Motor Trend Car of the Year.
Lucid reduced its full-year 2022 production target from 20,000 to between 12,000 and 14,000 cars in February. Murphy thinks that Lucid’s creative and competitive electric powertrain technology sets it apart from competitors and makes it the Ferrari NV (RACE) of new EV manufacturers, despite problems with production.
Bank of America’s LCID stock, which closed at $13.86 on May 11, has a “buy” rating and a $50 price target from Bank of America.
4. Proterra, Incorporated (PTRA)
Proterra manufactures commercial electric vehicles, EV powertrain systems, and charging infrastructure.
Proterra provided 54 transit vehicles, 139 battery systems, and 1.9 megawatts of charging infrastructure in the most recent quarter. Despite supply restrictions, analyst Sherif El-Sabbahy forecasts sales growth of 23.3% in 2021, 33.8% in 2022, and 121.5% in 2023. Best Rival Stocks to Buy for Tesla Competitors, Rising prices may have dragged on profits in 2022, but El-Sabbahy thinks Proterra will benefit from solid demand, a substantial backlog, and money from the US infrastructure plan. PTRA, which ended at $4.70 on May 11, has a “buy” rating and a $12.25 price target from Bank of America.
5. The Ford Motor Company
While investors are naturally enthused by EV startups, traditional automakers are investing heavily in electrifying their model lines. According to Bloomberg, Ford plans to invest an extra $10 billion to $20 billion in EVs over the next 5 to 10 years, on top of the $30 billion it has already vowed to spend by 2025.
Murphy claims that Ford’s Ford+ strategy to invest in transitioning to an auto technology firm is building the framework for the corporation to grow into a bigger and more lucrative entity. Best Rival Stocks to Buy for Tesla Competitors, F stock, which closed at $17.46 on February 14, has a “buy” rating and a $30 price target from Bank of America.
6. Li Automobile Inc. (LI)
Li Auto is another well-known Chinese EV manufacturer that was the first to market an extended-range EV in the country. The Li-One, the company’s first vehicle, is a big SUV. In January, Li recorded 12,268 car deliveries, an increase of 118.1% year on year. Lee is optimistic about the arrival of Li’s full-sized SUV, the X01, in 2022.
Li also plans five further model releases in 2023, with long-term gross profit margins on the Li-One ranging between 20% and 30%. Best Rival Stocks to Buy for Tesla Competitors, Bank of America has a “buy” rating and a $46 price objective on LI stock, which closed at $28.48 on February 14. Bank of America has a “buy” rating and a $46 price objective on LI stock, which closed at $28.48 on February 14.
7. XPeng Inc. (XPEV)
XPeng is a Chinese EV startup focusing on the mid-and high-end markets. XPeng introduced the G3 SUV in 2018 and the P7 sports car in 2020.
XPeng claimed 9,000 car deliveries in April, a 75% increase over the previous year. Xpeng’s year-to-date deliveries of 43,563 and 136% year-on-year delivery increase have both outperformed leading Chinese EV competitors Nio and Li Auto. Best Rival Stocks to Buy for Tesla Competitors According to analyst Ming Hsun Lee, XPeng has established remarkable production statistics while navigating supply chain challenges. Bank of America’s XPEV stock, which closed at $19.82 on May 11, gets a “buy” rating and a $46 price target from Bank of America.