The electric vehicle (EV) market possesses an unmatched possibility for long-term growth, meeting the global goal of transitioning into sustainable vehicles. While the EV market has slowed down recently, EV demand will inevitably continue to rise in the future. In the next six years, we are expected to have 100 million more EVs than we currently do on the road.
And, as more newcomers jump into the market, more companies will challenge the EV pioneer Tesla (NASDAQ:TSLA). Let’s explore three EV stocks that are beating Tesla.
Nio (NIO)
Shanghai,China-based Nio (NYSE:NIO) has fallen nearly 30% year-over-year (YOY). However, the company still showcases upsides that will convince investors to be bullish about the stock.
Also, Nio unveiled the first L60 SUV model to the public. Priced at 219,00 Yuan ($30,465), this model will be in direct competition with Tesla’s Model Y. The latter is 10% more expensive than Nio’s newest SUV.
From January to May 2024, Nio has delivered 66,217 vehicles, a 50.99% increase YOY. Last month specifically, the Chinese automaker achieved an impressive 233.78% growth in delivery from May 2023. The price cuts in monthly fees for battery-swapping service that month likely contributed to deliveries increase.
On May 30, analysts from Morgan Stanley indicated an overweight rating on Nio, citing its research on the company and its recent high-volume EV deliveries. Morgan Stanley set the target price for Nio at $10.00, a steady rise from the current price of $5.33.
Ford (F)
Multinational automaker Ford (NYSE:F) has been growing its EV segment. Though it has a long way to go from traditional vehicles to EVs. the company is shifting in strategy. Also, it’s making larger investments into EVs for long term gains. And this makes for an appealing opportunity to investors.
In the first three months of 2024, Ford recorded 86% increase in EV sales. This makes Ford second in the domestic EV market behind Tesla. Specifically, the F-150 Lightning secured its position as the best-selling electric pickup truck in America while Mach-E placed second in electric SUV just short of Tesla’s Model Y.
Furthermore, Ford is offering a $1,500 discount on its EVs to customers who already lease or own a Tesla vehicle. This policy could be interpreted as a direct change to its biggest competitor Tesla, hoping to turn Tesla owners and early EV enthusiasts into Ford EV fans.
Xiaomi (XIACY)
Xiaomi (OTCMKTS:XIACY) is a newcomer to the EV market, but this Chinese automaker has a lot to offer. The company’s background lies in being one of the most reliable and popular brands in consumer electronics and software such as smartphones. So its recent entry to the EV market has thrilled some investors.
When Xiaomi initially announced Xiaomi SU7, the company’s first-ever EV, it led to a more than 10% increase in its stock price and the customers responded to the news with excitement. XIACY received almost 90,000 pre-orders of Xiaomi SU7 in the first 24 hours of the news.
Already, Xiaomi has changed its delivery goal for 2024 from 100,000 to 120,000 units. The deliveries started in April, and since then, the EV maker has delivered more than 15,000 vehicles. The company plans to make more than 10,000 deliveries in June. This Chinese EV newbie will continue to cause a stir in the market with increasing delivery outcomes and challenge established competitors such as Tesla.
On the date of publication, Andy Kim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.