The Next Tesla? Ranking the 7 Top EV Stocks on TSLAs Tail

If you don't have that confidence, Tesla is an expensive risk. You might prefer an exchange-traded fund that includes Tesla as a major holding, as recommended by Erik Sherman in his coverage of the best EV stocks. The stock price spiked in July above $290, only to fall to $215 in August. Tesla will raise the price of China-produced Model Y vehicles by 5,000 yuan ($694.55) from April 1, the company confirmed to Reuters on Wednesday. The focus has been on its batteries division, though, where it reported positive test results earlier this year, exceeding its previously stated targets. It will be testing its batteries in its flagship electric SUV, the Mullen Five, enabling it to go over 600 miles on just one charge.

Immediate threats include Ford and Chinese EV maker BYD. The senator raised concerns about potential conflicts of interest between carmaker and the private companies Elon Musk runs. Due to supply-chain bottlenecks, it couldn’t expand its factory output. However, its recent third-quarter update has been more encouraging and suggests that its production ramp is going according to plan. Moreover, its reservations continue to increase each quarter, amounting to over $3.5 billion in potential sales.

According to Fortune Business Insights, EV sales globally will grow at a CAGR of 17.8% between 2023 and 2030. In a 2018 televised interview, she said Tesla would hit $4,000 by 2023. Adjusting for splits, Tesla hit that mark two years early in 2021. The $85 target comes from Craig Irwin, a Roth Capital analyst. In his view, steeper competition, factory shutdowns and launch delays put Tesla at risk of losing market share.

Investors are paying a steep premium because they believe in Tesla's ability to innovate, open new markets, diversify its business model and create massive shareholder value. In August, the stock dipped on news that Tesla had cut prices in China to defend its market share. The stock rose again when the China Passenger Car Association reported year-over-year and month-over-month sales growth on Tesla EVs made in China. Lockdowns in China and the deplorable economic situation across the globe have significantly impacted Nio’s business of late. However, cumulative deliveries have reached 259,563 as of October, with a 174.3% growth in deliveries last month from the prior-year period. The firm continues to produce tens of thousands of vehicles and has a sizeable lead over its competition.

Competition will be a major challenge for Tesla in the years ahead. Going forward, consumers will have more choice in electric vehicles as other automakers increasingly look to win a piece of the EV market. We already know Tesla is willing to defend its market share by lowering prices. That will depress margins and, possibly, sales growth. To form an opinion on Tesla's pricing, start by deciding what kind of company Tesla is. Considering Tesla's current valuation, it's clear most investors don't view Tesla as a carmaker.

Tesla's multiples are high by most standards, though not nearly as high as they were in 2020 and 2021. Still, analysts don't agree on whether Tesla is overpriced, fairly priced or underpriced. Tesla stock has run up 135% since January, but it's still 40% off its 2021 highpoint. Is this recent strength building towards a new high stock price for Tesla TSLA in 2025? Read on to learn where Tesla's opportunities lie and what challenges it faces going forward. The majority of Tesla's staff in Germany decided against the IG Metall Union and opted for non-unionised lists for the new works council, the company said on Wednesday.

Some, like Lordstown Motors and Arrival, have collapsed while others like Fisker and Faraday Future are on their deat... Shares in Chinese EV rival XPeng closed down after e-commerce giant Alibaba sold down more of its stake in the car maker. In 2023, Tesla's revenue was $96.77 billion, an increase of 18.80% compared to the previous year's $81.46 billion. You have access to our expertly curated collection of free investing reports, including 5 Best Stocks to Buy this Month, How to Find Undervalued Stocks, How Options Work, and more. Trading on the NASDAQ, Tesla offered 13.3 million shares at a price of $17 per share.

  1. However, cumulative deliveries have reached 259,563 as of October, with a 174.3% growth in deliveries last month from the prior-year period.
  2. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
  3. Tesla has been a clear leader in the space but has operated mainly without competition.
  4. Shares in Chinese EV rival XPeng closed down after e-commerce giant Alibaba sold down more of its stake in the car maker.
  5. It recently acquired Electric Last Mile for $240 million, gaining multiple assets and an active production plant to speed up its manufacturing.
  6. Longer term, Tesla ideally wouldn't be dependent on electric passenger car and truck sales for growth.

Also, with a cash balance of more than $4.5 billion and its partnership with the Kingdom of Saudi Arabia, it should have plenty of liquidity to push the afterburners with its production. EV sales shot up almost 120% on a year-over-year basis to 6,261 units, with retail sales up 79.1%. The F-150 Lightning has been the best-selling electric truck since its release this year. Early signs for the F-150 Lightning sales are strong and have exhibited the potential to outsell its traditional model in the not-so-distant future. In dollars, that means the $500 billion in sales this year will grow to nearly $1,580 billion in seven years. Contributing factors are favorable regulatory environments for EVs around the world, rising fuel prices and growing adoption of alternative fuel vehicles.

Tesla's stock is down 44% in 2022 as enthusiasm for the electric car maker fades.

Nio is a leading Chinese EV giant that has experienced an incredible stock price run over the past couple of years. However, with multiple headwinds in play, its stock has shed over 70% of its value year-to-date. Furthermore, CHPT generated over $108.29 million in its second quarter, despite market headwinds. Its sales grew by 93% from the prior-year period resulting in a revenue beat of $5.26 million on consensus estimates. Moreover, it generated a gross profit of $18.2 million in the quarter, its highest number on record.

Tesla Dividend Calendar

Tesla's leadership expects to capitalize on that growth. The company has expressed a long-term goal of expanding vehicle production to 20 million by 2030. making sense of bitcoin and blockchain 2021 Tesla is an interesting long-term stock that may face near-term headwinds. The company's leading market share in the global EV market is attractive.

Stock Price Forecast

But earnings are expected to more than quadruple this year (to $0.22 from $0.05 last year), and sales should hit new record highs of $1.06 billion, with another 12% growth expected in 2024. The return on this one might be pretty mild in a year. But if you buy GTBIF and hold on to it for five, 10 years, I’m betting you’ll have a very hefty return. Tesla is a risky stock, but one that could play big rewards down the line.

Biden's EPA rolls out regulation that aims to boost sales of EVs

Therefore, with an incredible outlook ahead, BYDDF stock is an excellent bet for the long haul. Tesla has been a clear leader in the space but has operated mainly without competition. However, in the past few years, we have seen multiple EV stocks emerge, which have the potential to perform better than the EV pioneer. In fact, John Murphy, a Bank of America analyst, had forecasted that Tesla’s EV market share could drop from a massive 70% in 2021 to just 11% within the next four years by 2025. Tesla (TSLA) reduced production of the Model Y and Model 3 in China amid slowing sales growth according to a report.

Leave a Reply

Your email address will not be published. Required fields are marked *