Tesla company Nasdaq: Tesla The stock has had an impressive run, rising more than 68% in the past year and a staggering 1,139% in the past five years as of January 9, 2025. The electric car giant remains the largest car manufacturer worldwide by market cap – at $1.24 . Trillion dollars, which is about five times the size of the second largest car company.
Despite this massive success, there are plenty of reasons why investors might be dissatisfied with Tesla lately. A growing number of Wall Street analysts are rating TSLA either a sell or hold on the basis that the stock has become overvalued; The consensus price target of around $293 is 25% below current levels as of January 9. Tesla vehicle deliveries for 2024 fell more than 2% year over year, the first time that number has fallen in this time frame and a significant decline. A concern for a company that previously aimed for a 50% annual growth rate in deliveries. And high-profile incidents involving the company — a Cybertruck exploding in Las Vegas on New Year’s Day in a possible act of terrorism and CEO Elon Musk’s increasingly polarizing political behavior — may send investors elsewhere.
Fortunately, electric vehicle alternatives, including Li Auto Inc. Nasdaq: LeeRivian Automotive Company Nasdaq: RavenNew Company. New York Stock Exchange: Newgives investors looking beyond Tesla several good options.
Li Auto: Targeting the budget-friendly electric car market
I have cars today
As of 04:00 PM ET
- 52 week range
- $17.44
▼
$46.44
- P/E ratio
- 16.47
- Price target
- $33.94
While Tesla shares have risen significantly in recent months, Chinese electric vehicle maker Li Auto is trending in the opposite direction, with LI shares falling nearly 30% in the year ending January 9, 2025. China’s electric vehicle market has suffered more broadly in 2024 in 2024. It faces several headwinds, including delayed demand, a high-intensity price war, and concerns about the impact of regulation on the industry.
On the other hand, Lee has also moved in the opposite direction to Tesla when it comes to vehicle deliveries, with a new record of more than half a million vehicles sold in 2024 and a 16.2% year-on-year increase in vehicles delivered in 2024. December . Li has taken steps to target the budget electric vehicle market with the L6, the most affordable model among its vehicles. The company has also improved its self-driving system to include highway and city driving capabilities, helping it stand out in crowded places.
While LI shares remain a Hold based on analyst ratings, the consensus price target for the stock comes in at $33.94, more than 46% before the stock currently trades.
Rivian Automotive Company: Impressive performance in the fourth quarter, and the shortage was resolved
Rivian Cars Today
Rivian Cars
As of 04:00 PM ET
- 52 week range
- $8.26
▼
$19.12
- Price target
- $15.48
Shares of US electric car company Rivian fell about 26% last year, but rose about 15% in early January 2025 after the company reported better-than-expected delivery numbers in the fourth quarter. Rivian’s 14,183 vehicles delivered in the fourth quarter of 2024 were more than 5% above Wall Street consensus estimates and a 42% improvement over the previous quarter.
There are two other important factors that suggest Rivian could be off to a good start in 2025: First, the impressive delivery number came during a period of the year that is typically lower than usual in terms of electric vehicle deliveries, making it even more notable; Second, Rivian simultaneously announced the resolution of its component shortages that began in October. This would free up the company to produce all of its models at a regular pace until 2025, and should allow its partnership with Volkswagen — Rivian will provide software for upcoming Volkswagen EVs — to continue uninterrupted as well.
Analysts are cautiously optimistic about Rivian shares, with 10 out of 25 on Wall Street rating the company a buy.
NIO: Notable year-end deliveries
New today
As of 03:58 PM ET
- 52 week range
- $3.61
▼
$7.71
- Price target
- $5.71
Like Li and Rivian, NIO shares have also fallen in the past year, with a roughly 43% decline sending the stock well below $5. However, NIO’s delivery of more than 31,000 vehicles in December, an increase of 73% year-on-year, is a bright spot for the company.
While Lee may be focused on the budget end of the EV market, NIO has plans to expand across the spectrum. Onvo’s budget-friendly line saw sales nearly double from November to December, and production is expected to continue expanding in the future. NIO is also launching new SUVs this year and making inroads into the compact electric vehicle market with its Firefly line, which analysts expect will strengthen the company’s position in Europe. It’s no surprise, then, that analysts see more than 32% upside potential for NIO stock.
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