Hey welcome to Trader’s Alley. You can read your free report below. But though Tesla might be tanking, it’s not over for Elon quite yet. On the next page, you’ll hear from Rob Spivey, detailing his expectations for DOGE’s first 100 Days…
With the full force of the U.S. government behind him, Elon could roll out a new technology that’ll totally rewire life in America, changing how you claim Social Security… pay your taxes… even how you access healthcare.
In the process, it could create extraordinary wealth for anyone who understands Elon’s real agenda. To find out more, just click “Submit & Continue” below to watch the full briefing…
Tesla Inc. (NASDAQ: TSLA) has delivered an astonishing stock performance, surging over 68% in the past year and an incredible 1,139% over the last five years as of January 9, 2025. The electric vehicle (EV) leader remains the world’s most valuable automaker, boasting a market capitalization of $1.24 trillion—roughly five times the size of its closest competitor.
However, despite its massive success, investor sentiment around Tesla has recently cooled. A growing number of Wall Street analysts have issued Sell or Hold ratings on the stock, citing concerns about overvaluation. The consensus price target of $293 represents a more than 25% downside from its current level as of January 9. Additionally, Tesla’s vehicle deliveries declined by over 2% in 2024 compared to the previous year—marking the first annual drop in deliveries, a troubling sign for a company that once aimed for 50% annual growth. Meanwhile, external controversies—including a New Year’s Day Cybertruck explosion in Las Vegas, which may have been a terrorist attack, and the increasingly divisive public persona of CEO Elon Musk—could be contributing to investor hesitation.
Li Auto: Expanding in the Budget EV Market
While Tesla shares have been soaring, Chinese EV manufacturer Li Auto has struggled, with its stock falling nearly 30% over the past year. The broader Chinese EV market faced several challenges in 2024, including waning demand, aggressive price competition, and regulatory uncertainties.
Yet, in contrast to Tesla’s declining deliveries, Li Auto achieved record sales, surpassing half a million vehicle deliveries in 2024. December alone saw a 16.2% year-over-year increase in deliveries. The company has also taken steps to target budget-conscious buyers with its L6 model, its most affordable offering to date. Additionally, Li Auto has enhanced its autonomous driving technology to support both city and highway driving, setting itself apart in the increasingly competitive EV space.
Although analysts currently rate Li Auto as a Hold, the stock’s consensus price target of $33.94 suggests a potential 46% upside from current levels.
Rivian: Overcoming Challenges with a Strong Fourth Quarter
Rivian (NASDAQ: RIVN) has also faced headwinds, with its stock declining approximately 26% over the past year. However, the company experienced a sharp turnaround in early January 2025, with shares jumping 15% following a better-than-expected Q4 delivery report. Rivian delivered 14,183 vehicles in the final quarter of 2024—exceeding Wall Street expectations by more than 5% and marking a 42% increase from the prior quarter.
Several factors suggest Rivian could be in a strong position heading into 2025. First, its robust Q4 performance came during a typically slow period for EV sales, making the results even more impressive. Second, the company confirmed that its component shortage, which began in October, has been resolved. With production back on track, Rivian can now operate at full capacity across all its models. This also ensures a smooth continuation of its partnership with Volkswagen, where Rivian is supplying software for Volkswagen’s upcoming EV lineup.
Investor sentiment remains mixed but leans optimistic, with 10 out of 25 Wall Street analysts rating Rivian as a Buy.
NIO: Strong Year-End Deliveries Despite Struggles
Like Li Auto and Rivian, NIO (NYSE: NIO) has struggled over the past year, with its stock plunging nearly 43% and dipping below $5. However, the company ended 2024 on a high note, delivering more than 31,000 vehicles in December—an impressive 73% increase year-over-year.
NIO is positioning itself to compete across various EV segments. While Li Auto focuses on budget-friendly models, NIO is expanding its offerings across the price spectrum. Its affordable Onvo line saw sales nearly double from November to December, with production expected to ramp up further in 2025. Meanwhile, the company is introducing new SUVs and making inroads into the compact EV market with its Firefly brand, which analysts believe will strengthen its foothold in Europe.
With these developments in play, analysts forecast a potential upside of over 32% for NIO shares.