2 Tesla competitors will turn $100 into $1,000 by 2025

Tesla (NASDAQ: TSLA) has dominated the electric vehicle (EV) market for years and the company's stock is one of the preferred options for investors looking to gain exposure to the industry.

However, in 2024, TSLA will be impacted by slowing demand and increasing competition in the overall EV market.

Overall, most companies in this space have the potential to deliver high returns as electric vehicles become more popular. In addition to Tesla, other players are also offering alternative options for investors to turn a $100 investment into $1,000 in the coming year.

Nio (NYSE: NIO)

Nio (NYSE: NIO), the Chinese electric vehicle maker, has gained ground due to factors such as a growing vehicle lineup and improvements in battery technology.

The company's strength was particularly highlighted in the second quarter of 2024 results. Nio's revenue nearly doubled year-over-year to nearly $2.4 billion, while net loss narrowed to $0.30 from $0.45 a year earlier, driven by strong delivery growth.

In 2025, the stock could see significant sales growth due to increasing demand for models like the ES8. The electric car maker is also likely to see higher sales as it focuses on the lower end of the luxury electric car market.

In May, the company launched the Onvo sub-brand, the first model of which is scheduled to officially launch in September. Onvo aims to promote mass consumption.

In addition, the company plans to unveil the Firefly, a model that combines a small and a compact SUV. This development will likely help NIO resume its delivery growth, which rose steadily in 2020 and 2021 before experiencing corrections in 2022 and 2023, mainly due to supply chain bottlenecks.

While the company's product pipeline looks impressive, NIO faces several headwinds, including profitability issues from expanding its battery swap networks, share price dilution, and issues with expanding into Europe.

Meanwhile, 11 Wall Street analysts at TipRanks predict that NIO is likely to gain over 8% over the next 12 months and trade at an average price of $5.97. Experts also believe that the stock could reach a high of $8, with the low forecast at $4.

At press time, NIO was trading at $5.58 with a daily gain of over 1%. In 2024, the stock will fall by 33%.

Rivian (NASDAQ: RIVN)

Like other EV stocks, Rivian (NASDAQ: RIVN) has been trying to recover in recent months after a sluggish start to the year. Given the backing of giants like Amazon (NASDAQ: AMZN), investors are likely to develop a long-term interest in the company.

In addition to strong support, Rivian's unique market position – focusing on the premium electric truck and SUV market with models like the R1T and R1S – is a niche market that could offer growth as more consumers look for sustainable alternatives.

In addition, institutional investors have shown a preference for the stock. In the second quarter, 37 hedge funds held Rivian with a total stake of $383.6 million.

Based on these fundamentals, 22 Wall Street analysts claim that RIVN is likely to trade at an average price of $17 over the next year. This value represents a growth of about 26% from the current valuation. The experts have also set a high price target of $30 and a low of $8.

At press time, RIVN traded at $13, representing a 24-hour gain of 2.4%. The stock is down 35% year-to-date.

In summary, the highlighted stocks represent an ideal alternative to Tesla given the increasing competition in the EV market. In fact, both Rivian and NIO are likely to have strong upside potential due to their niche markets.

Buy stocks now with eToro – trusted and advanced investment platform

Disclaimer: The content of this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.