Tesla stock price has bounced back in the past few days. It has risen from this month’s low of $218 this month to a high of $278, its highest point since March 17. Still, the stock has plunged by over 43% from its highest point this year, shedding billions of dollars in value. This article explains why the TSLA share price has crashed, and some of the best EV stocks to buy instead.
Tesla stock price is at risk
The crisis at Tesla is accelerating after a report by the European Automobile Manufacturers Association showed that Tesla sales in the region crashed by 40% in February. Its sales in the region have dropped by 43% in the first two months of the year.
Tesla’s sales have crashed, especially in Germany, after Elon Musk started talking about the country’s politics. Its European sales deviated from the industry as EV sales jumped by 16%.
Sales in other regions are not doing well too. For example, its Chinese business is struggling as it faces strong competition from the likes of BYD, Li Auto, Nio, and Xiaomi. All these companies are seeing double-digit sales growth as their demand remains robust.
Tesla is also facing pressure in the US, where its vehicles are being vandalized because of Elon Musk’s politics and his relationship with Donald Trump. As such, there is a risk that the company’s deliveries there will keep rising.
Tesla has other challenges. The most notable one is that it only sells four models: Model 3, Model Y, Model X, and Cybertruck. Many companies in the auto industry thrive by launching many models.
Therefore, analysts recommend investing in other fast-growing electric vehicle stocks that are gaining market share.
Read more: Tesla stock price forecast: 4 reasons TSLA is imploding
BYD
BYD is one of the best EV stocks to buy because of its strong market share, revenue growth, and its technology. Its most recent results show that its annual revenues jumped above $100 billion for the first time ever. These sales were about 29% higher than a year earlier, a notable thing since Tesla’s revenues largely stagnated last year. Tesla made over $98 billion in annual revenue last year.
BYD is a good EV stock to buy because of its innovation. It recently unveiled a new charging system that can move a vehicle from zero to 100% in about 5 minutes. This technology means that most EV buyers will consider it in the future.
Unlike Tesla, BYD is not a pure-play EV company. It is a big player in the hybrid vehicle industry, giving users concerned with EVs an alternative. Further, BYD is aiming to gain market share in countries in Europe and Southeast Asia.
XPeng
XPeng is another top EV stock to buy because of its aggressive growth and innovation. For example, the company anticipates that it will deliver between 91,000 and 93,000 vehicles this quarter, representing a 326% annual growth rate.
The most recent numbers showed that its quarterly revenue rose by 60% to RMB 16.1 billion, while its gross margins expanded to 14.4% from 8.8% a year earlier.
XPeng plans to launch more vehicle models to gain market share. It also plans to launch a flying car in 2026, a move that will diversify its revenue.
Nio
Nio stock | Source: TradingView
Nio is another top EV stock to buy even as its shares continues to deteriorate. Results released last week showed that it delivered 72,689 vehicles during the quarter. Most of these vehicles came from its premium brand, while ONVO sold almost 20,000 vehicles.
Nio’s quarterly revenue rose by 15.2% in the last quarter to $2.6 billion, while its gross margin expanded to 11.7%. The company expects to deliver between 41,000 and 43,000 vehicles this quarter, representing a quarterly growth rate of 36.4%. It sees its revenues rising by 24.8% this year.
There are odds that the Nio stock price will rebound later this year. As shown above, the Nio stock price has formed a quadruple bottom with a neckline at $7.72. That is a sign that the stock will rebound later this year.
Read more: Nio stock price forecast: Here’s why it could surge 270% in 2025
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