Tesla (Nasdaq: TSLA) has lost 7% in value over the past month, but is still up 36.4% year-to-date.decline of the top Electric car (EV) manufacturers Earnings in the first quarter It underscored investor concerns about aggressive price cuts impacting margins. Investors will also invest in BYD (Biddy), Nio (NIO), Livian (Riven) as well as from traditional automakers such as Ford (F.) and General Motors (GM).
Tesla bulls praise the company for its size and cost advantages, its cutting-edge technology and the financial strength to support its expansion plans.But some analysts remain wary of the CEO Elon Musk’s Claims about the company’s fully self-driving (FSD) capabilities, its soaring share price despite intense competition in the electric-vehicle market, and Musk’s distraction from other businesses.Meanwhile, Tesla recently Increased prices on some modelsaddressed some concerns about aggressive markdowns.
Wall Street has given Tesla a “moderate buy” consensus rating based on 15 buys, 11 holds and four sells. An average target price of $203.64 implies a 21% increase.
Let’s take a look at three EV startups and their growth potential.
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Nio (NYSE:NIO)
Nio has been under pressure in recent quarters due to the turmoil caused by the resurgence of the coronavirus in China, competition in China’s EV market and a price war sparked by Tesla. Nio’s first quarter deliveries increased year over year However, it gradually decreased.
Furthermore, the number of vehicles delivered in April increased by more than 31% year-on-year to 6,658 units, but decreased by about 36% from March. Deliveries were impacted by Nio’s vehicle being upgraded from his Nio Technology 1.0 platform to his Nio Technology 2.0. Looking ahead, deliveries are expected to benefit from the launch of the new ES6 SUV and increased production of his EC7 SUV with Nio’s new technology platform. In addition, Nio’s battery exchange network gives it an edge over its competitors.
Wall Street’s Medium Buy consensus rating for Nio is based on 6 Buys and 3 Holds. An average target price of $14.92 implies an increase of almost 87.7%.
Rivian (NASDAQ:RIVN)
Rivian has often been criticized for its production problems and huge cash burn.American EV makers delighted investors this week with Reports lower than expected first quarter loss They also reaffirmed their production forecast for the full year at 50,000 units, which is double that of last year. Earnings It surged to $661 million from $95 million in the same period last year.
But Rivian has warned investors that supply chain issues are the “main limiting factor” to normal facility output. The company plans to address these issues by introducing new engineering design changes and key technologies.
Wall Street has a consensus rating of 11 buys, 6 holds, and 1 sell for Rivian as a “moderate buy.” An average price target of $23.67 suggests an 83.4% upside.
Mullen Automotive (NASDAQ:MULN)
EV startup Mullen stock plunges more than 82% Due to the high uncertainty surrounding the company before earnings, the outlook is currently through 2023. Earlier this month, Mullen implemented his 1-for-25 reverse split to bring the company into compliance with Nasdaq standards (NDX) A minimum bid of $1.00 is required to maintain the listing.
Ahead of the reverse stock split announcement, Mullen also provided a business update, stating that as of April 30, cash available for operations was $116.1 million. The company also disclosed details about its manufacturing activities and certain contracts, including a purchase order valued at $263 million for Mullen Class 1 and Class 3 electric vans and trucks from Randy Marion Automotive Group. . The company expects its Class 3 commercial vehicle production line to go live in July, with Class 3 truck deliveries to be profitable in August and September 2023.
The company has issued several orders to revive investor interest, penny stock It remains a highly speculative bet. On Friday, Mullen announced: Concluded a vehicle purchase contract with an MGT leasing company for 250 EV trucksthe value of the contract is about $15.8 billion.
Conclusion
Wall Street is cautiously optimistic about Tesla, Nio, and Rivian, citing macro challenges and risks specific to certain companies. Mullen has a long way to go to compete with these EV players.
According to TipRanks’ smart score system, Tesla has a better smart score than the other three EV players. In particular, Tesla’s sensible 8 out of 10 score suggests the company’s stock could outperform the broader market over the long term. Tesla is a company with relatively stable profit margins, and its stock has outperformed these EV rivals since the beginning of the year.
That said, Wall Street sees more upside for Nio, as a decline in Nio’s shares would be a good entry point. Nevertheless, investors should be aware of the volatility and risks associated with EV stocks.