Global electric and plug-in hybrid vehicle sales rose 18% year over year to 1.3 million in January 2025. However, January sales were down 35% compared to December 2024 due to a plunge in the demand in China owing to the timing of the Chinese New Year holiday sales. Nonetheless, several electric vehicle (EV) makers are delivering resilient performance despite macro challenges, higher tariffs, and price wars amid intense competition. We used to TipRanks’ Stock Comparison Tool, we placed Nio (NIO), Li Auto (LI), and Tesla (TSLA) against each other to find the best EV stock, according to Wall Street analysts.
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Nio (NYSE:NIO)
Nio stock has advanced about 9% over the past month but is still down 82% from its 3-year high. Macro pressures in China, price wars triggered by intense competition, and profitability concerns have impacted investor sentiment about the premier EV maker.
Nevertheless, Nio is trying to improve its performance by driving operational efficiencies and expanding beyond its premium offerings through the development of lower-priced, mass-market brands. In particular, the company is optimistic that its Onvo and Firefly sub-brands, along with the flagship Nio brand, will boost its growth in the years ahead.
The company aims to achieve full-year breakeven in 2026, with focus on cost control. Further, Nio expects to double its deliveries in 2025 compared to 221,970 vehicles last year. The company recently reported a 38% year-over-year growth in January deliveries to 13,863 units. However, January deliveries were down more than 55% compared to December 2024 due to seasonal weakness arising from the Chinese New Year holidays.
Is Nio a Buy, Sell, or Hold?
Earlier this month, JPMorgan analyst Nick Lai downgraded Nio stock to Hold from Buy and lowered the price target to $4.70 from $7. The analyst believes that company’s earnings report will play a crucial role in influencing NIO stock’s movement. Lai lowered his FY25-26 revenue and earnings estimates by 7%-10% and 13%, respectively, bringing his forecast in line with Wall Street’s consensus estimates.
Importantly, Lai’s 2025 volume estimate of 334,000 units indicates a 50% growth from last year and is way lower than the company’s expectation of doubling its sales to about 440,000 units.
Overall, Wall Street has a Hold consensus rating on Nio stock based on three Buys, seven Holds, and two Sell recommendations. The average NIO stock price target of $5.22 implies about 18% upside potential.
Li Auto (NASDAQ:LI)
Li Auto stock has risen 16% in the past month but is still down more than 14% over the past year. The company has a dominant position in China’s NEV (new energy vehicle) market. It delivered 500,508 vehicles in 2024, reflecting a 33% growth.
However, January was a challenging month for Li Auto due to intense competition and the timing of the Chinese New Year holidays. The company’s January deliveries fell by 4% on a year-over-year basis and 48.9% on a sequential basis to 29,927 vehicles.
On the positive side, Li Auto’s extended-range electric vehicle (EREV) model, Li L6, crossed the 200,000 cumulative delivery milestone in January 2025. Moreover, January marked the seventh consecutive month in which Li L6 maintained its position as the best-selling EREV model in China.
Despite the weakness in January, most analysts remain bullish on Li Auto stock, given that its one of the few profitable EV makers in China. The company recently began mass production of its in-house developed SiC (silicon-carbide) modules as it gears up for the launch of new BEVs later this year.
Is LI Stock a Good Buy?
Recently, Macquarie analyst Eugene Hsiao upgraded Li Auto stock to Buy from Hold but slightly lowered the price target to $29 from$30. The analyst noted that Li Auto’s Q4 2024 volumes came in below the low end of guidance and there is a risk of a revenue miss due to the higher mix of the lower-priced L6 and L7 models.
Hsiao added that while premium EV volumes might be seasonally weak, concerns over BEV (battery electric vehicle) SUVs already seem to be factored into LI stock’s current price. Consequently, Hsiao sees lower risk at current levels and upgraded the stock.
With four Buys and one Hold recommendation given in the past three months, Li Auto stock scores a Strong Buy consensus rating on TipRanks. The average LI stock price target of $29.72 implies 15% upside potential from current levels.
Tesla (NASDAQ:TSLA)
Tesla stock rallied to a record high following Donald Trump’s win in the presidential elections. The stock’s rally reflected investors’ optimism about Tesla CEO Elon Musk’s close ties with Trump benefiting his companies.
While the stock has jumped 89% over the past one year, it has retreated more than 10% in the past month due to a reversal in investor sentiment about Musk’s political activities, especially his role as the head of the U.S. Department of Government Efficiency (DOGE). Some analysts and investors are now seeing Musk’s political exposure as a distraction to his responsibilities towards Tesla.
The decline in Tesla stock price also comes as the company recently reported underwhelming results for Q4 2024, with operating income declining 23% and automotive revenue falling 8% year over year. These declines reflect the impact of price wars in the EV space. There are also concerns about lack of innovation.
Nonetheless, Tesla bulls are optimistic about the prospects of the company’s robotaxis and ability to sustain a dominant position in the EV space.
What Is the Target Price for TSLA Stock?
Recently, Stifel analyst Stephen Gengaro reiterated a Buy rating on Tesla stock but lowered the price target to $474 from $492, citing pricing pressures, declining favorability, and intense rivalry in China. The analyst noted that while Tesla’s Q4 revenue missed Stifel’s expectations, adjusted EBITDA was stronger-than-expected, with the company achieving a record-low cost of goods sold per vehicle.
Despite a complex backdrop, Gengaro remains bullish on TSLA stock due to its core business, autonomy initiatives, Robotaxi potential, and the Optimus robotic humanoid program.
Overall, Wall Street has a Hold consensus rating on Tesla stock based on 13 Buys, 12 Holds, and 10 Sells. At $340.50, the average TSLA stock price target implies a downside risk of 4.3%.
Conclusion
Analysts see comparable upside potential in Nio and Li Auto stocks while the average price target for Tesla indicates downside risk from current levels. Overall, Wall Street is sidelined on Nio and Tesla stocks and highly bullish on Li Auto stock. Despite the January setback, analysts remain bullish on Li Auto stock due to the Chinese EV maker’s solid execution, profitability, and innovative offerings.
