Competitors of Tesla: 6 stocks of competing electric vehicles


Six new electric vehicle companies to watch. The biggest name in electric vehicles just keeps growing. In the wake of …

Six EV companies managed to monitor.

The biggest name in electric vehicles just keeps growing. In the wake of his induction into the S&P 500 in 2020, Tesla (ticker: TSLA) is up almost 30% since the start of the year. But at the end of September, Cathie Wood, super investor and founder of Ark Investment Management, gave up about $ 270 million of Tesla shares, then another $ 41.5 million on October 22. Although Tesla posted a record third quarter net profit of $ 1.62 billion. As of Wednesday’s results, investors may be looking for the next EV game to eat into the giant’s sizable market share. “There are a lot of competitors in the electric car market now that Tesla has proven that there is indeed a demand for the product,” said Josh Simpson, vice president of operations and investment advisor at Lake Advisory Group. As EV startups go public in record numbers, you can also play on more familiar names that can be even more attractive from an investment standpoint, he says. The electric vehicle race has only just begun, and any of these six automakers could take the lead.

General Motors Co. (ticket: DG)

GM may not have the enthusiasm of an electric vehicle startup, but the company is committed to delivering 30 new electric vehicles by 2025 globally. “Given their production capacities, their notoriety, their distribution network and the capital available to invest in their production, they will be an important player in the electric vehicle market in the years to come,” said Simpson. “They have already sued Tesla customers directly once before when Tesla introduced the Model 3 and was unable to meet demand for the car.” Ron Madey, chief investment officer at Wealthcare Capital Management, also likes GM as an EV investment, noting that the No.1 engine, a impact investing group, bought a stake in the company earlier this year because of its belief that GM will be the leader in electric vehicles. GM expects 40% of its global vehicle sales volume to come from electric vehicles by 2030 and has pledged to sell only zero-emission vehicles by 2035. “So traditional automakers can make credible electric vehicles, they become very dangerous because their customer experience after the sale is superior to Tesla, ”says Madey.

Ford Motor Co. (F)

Ford is another solid option if you’re looking for a more established Tesla competitor. The company’s new CEO Jim Farley took the helm in October 2020 and is committed to refocusing Ford’s efforts on expanding and building its electric vehicle offerings, Simpson said. As part of an investment of 11.4 billion electric vehicles and batteriesFord recently partnered with a South Korean energy company to build manufacturing centers in Tennessee and Kentucky. Beyond Ford’s investments in battery factories, he saw increased demand for the new Ford Lightning, its all-electric truck, and pledged to double its production. Farley said the Lightning had “150,000 bookings and counts” as of mid-September.

Li Auto Inc. (LI)

One of Tesla’s new competitors is Chinese automobile company Li Auto, which went public to $ 11.50 a share in July 2020 and climbed 43% on the day it opened. Investors are clearly keen to learn more about Li’s range extension generator, a small on-board gasoline generator that recharges the One – Li’s flagship compact SUV – giving the car a range of 500 miles, an impressive technological feat. This hybrid approach is perfect for an EV in China, where charging station networks have yet to be built, causing “range anxiety, limiting use cases and preventing wider acceptance of BEVs. (battery electric vehicles) in China, “according to a filing with the Securities and Exchange Commission. Founded in 2015, Li has grown rapidly in China and delivered 25,116 copies in the third quarter of 2021, a 190% year-over-year increase.

Nio (NIO)

In August 2020, Chinese electric vehicle maker Nio started selling its battery-powered cars without batteries. The electric batteries of an electric vehicle are one of the most expensive components of the vehicle. By selling an EV without a battery, Nio can effectively reduce the price of its cheapest model, the ES6 SUV, by about 25%; this is a big difference for consumers who may be hesitant about the price point of EVs. Instead, Nio customers will have access to Nio battery exchange stations, where they can exchange used batteries for new ones. The success of this system relies on the Nio network. With over 300 battery stations in China, the company still has plenty of room to grow – and that’s exactly what it is doing, with vehicle sales up 100% year-over-year in the third quarter of 2021. The company recently raised its target of 500 battery exchange stations in China by year-end to 700 stations, with more of 4,000 battery exchange stations worldwide planned by the end of 2025.

Nikola Corp. (NKLA)

Nikola is a competitor of Tesla who took the competition to court. The companies have been at odds since Nikola filed a lawsuit against Tesla, alleging that Tesla’s EV semi-truck design stole some of Nikola’s patented designs. The lawsuit was recently reopened in October 2021, sparking Nikola’s share price. However, Nikola will mainly focus on big rigs. The company obtains originality points by combining the power of the electric battery with hydrogen fuel cells in its vehicles. The combination of the two gives Nikola automobiles some serious range – up to 900 miles on a single charge for its upcoming 2024 TWO FCEV, an impressive distance for an EV few competitors can beat.

Canoo Inc. (GOEV)

Canoo went public in December 2020 through a reverse merger with special purpose acquisition company Hennessy Capital Acquisition Corp. In a market that seems to be getting more and more crowded by the day, Canoo stands out – for example, when its consumer vehicle hits the road in the fourth quarter of 2022, drivers will have the option of being charged a monthly subscription for vehicles. Canoo cars, as well as insurance and access to charging stations. Canoo plans to target young professionals with this unique value proposition, but in the meantime the company will use its skateboard chassis technology to generate revenue.

Six electric vehicle manufacturers competing with Tesla:

– General Motors Co. (DG)

– Ford Motors Co. (F)

– Li Auto Inc. (LI)

– Nio Inc. (NIO)

– Nikola Corp. (NKLA)

– Canoo Inc. (GOEV)

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