The Tesla stock price has imploded this year, making it one of the worst-performing companies in the Nasdaq 100 indices. TSLA has dropped in the last five consecutive weeks and is hovering near its lowest level since November 4. It has tumbled by 45% from its highest level this year, erasing over $700 billion in value.
Best EV stocks to buy as Tesla crashes
Tesla stock price has crashed because of the ongoing competition and the fact that it has become a target as US moves to impose tariffs. Canada is said to be considering imposing huge tariffs on Tesla vehicles because of Musk’s close relations with Donald Trump.
Tesla’s growth trajectory has waned, with European sales plunging by the fastest pace in years. It is facing substantial competition from other companies, especially those from China. The best EV stocks to buy are from China, and are companies like XPeng, Li Auto, and Nio.
Read more: Tesla stock price forecast: 4 reasons TSLA is imploding
XPeng (XPEV)
Xpeng is one of the best EV stocks to buy and hold this year as its growth trajectory gains steam. The most recent monthly figures showed that it delivered 30,453 in February, up by 570% from the same period a year ago. This growth was driven by XPeng Mona, whose sales jumped above 15k for three consecutive months.
The most recent results showed that XPeng’s revenue rose by 18.4% in the third quarter to $1.25 billion. Its gross margin rose to 15.3%, a big improvement from the negative 2.7% it experienced a year earlier.
Analysts are optimistic that the XPeng earnings will do well gong forward. The average estimate is that its fourth-quarter revenue rose by 22% in Q4 to 16 billion CNY. This growth will bring its annual revenue to 41.4 billion CNY, followed by 73 billion CNY this year.
In our last Xpeng stock price forecast, we estimated that it will rebound to $40.33, up by 97% from the current level.
Li Auto (LI)
Li Auto is another EV stock to buy and hold as its growth momentum accelerates. Its stock has jumped from last year’s low of $17.56 to $27.67.
The company has continued doing well this year. Its recent delivery figures rose to 26,263 in February, a 29.7% increase from the same period a year earlier. These deliveries means that the company has now sold over 1.19 million vehicles since inception.
The third-quarter results showed that Li Auto revenue rose by 23.6% to $6.1 billion, while the gross margin eased a bit to $1.3 billion.
Analysts expect that Li Auto’s results will show that its revenue rose by 6.7% in the fourth-quarter to CNY 44.56 billion, bringing the annual figure to 145.76 billion yuan. They expect that its annual revenue will be 191 billion yuan.
Nio (NIO)
Nio is another EV stock to buy even as it remains near its lowest level this year. The company has done well as its deliveries jumped. Total deliveries rose by 62.2% in February to 13,192, bringing the two-month deliveries to 27,055.
Nio is a contrarian stock to recommend as it remains 45% below the highest level in 2024. Analysts expect that its fourth-quarter revenue rose by 18% to 20.19 billion RMB, bringing the annual figure to 68 billion. Nio’s revenue will then be supercharged to 97 billion RMB this year.
Read more: Nio stock price could enter beast mode, thanks to these catalysts
Summary
There are chances that China EV stocks will continue doing well in the long term because of the local and international opportunity. Many Chinese EV companies have already crashed, meaning that the surviving ones like XPeng, Li Auto, BYD, and Nio will thrive.
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