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Forget Tesla, Buy These 3 Top Electric Vehicle Stocks Instead By StockNews

Forget Tesla, Buy These 3 Top Electric Vehicle Stocks Instead © Reuters. Forget Tesla, Buy These 3 Top Electric Vehicle Stocks Instead

One of the most recognized names in the electric vehicles (EV) space, Tesla (NASDAQ:TSLA), has gained significant investor attention lately, which caused its stock to become overvalued. Now, Wall Street analysts’ price target for TSLA indicates a potential downside. Therefore, we think fundamentally sound EV stocks NIO (NIO), Li Auto (LI), and Workhorse (WKHS) could be better investment choices to cash in on the EV industry’s immense growth prospects. Let’s discuss.Due to climate concerns, governments worldwide are lending greater importance to emission control initiatives. Consequently, the electric vehicles (EVs) market is growing quickly. President Biden’s infrastructure bill proposal, which is expected to be passed imminently, has a $7.5 billion provision for EV charging networks. Furthermore, the EV-related proposals in the spending plan also include more than $100 billion in tax credits, which could slash EV prices and boost demand for them. The global EV market is expected to reach $917.70 billion in 2028, growing at a 20.6% CAGR.

EV giant Tesla, Inc. (TSLA) has attracted enviable investor attention of late, which has driven the stock to trade at an expensive valuation. Its 200.78 forward non-GAAP P/E ratio is currently 1,167.7% higher than the 15.84 industry average. And in terms of forward Price/Sales multiple, TSLA is trading 1,802.6% above the 1.27 industry average. In addition, for its third fiscal quarter, ended September 30, TSLA’s total cost of revenue increased 50.5% year-over-year to $10.1 billion, while its total operating expenses rose 32.1% from the same period last year to $1.66 billion. And its $835.53 12-month median price target indicates a 32.1% potential downside.

Therefore, we think EV stocks NIO Inc. (NIO), Li Auto Inc. (LI), and Workhorse Group Inc. (WKHS) could be better bets than TSLA to capitalize on the industry tailwinds. These stocks possess solid upsides based on the Street’s predictions.

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