Electric vehicle (EV) makers are under pressure due to macro uncertainties, tariff issues, and intense competition in key markets. Also, the end of federal tax credits is expected to impact demand for EVs in the U.S. Nevertheless, analysts remain bullish on some EV stocks based on their superior technology, solid execution, and ability to grow despite ongoing challenges. Using TipRanks’ Stock Comparison Tool, we placed Nio (NIO), XPeng (XPEV), and Tesla (TSLA) against each other to determine the EV stock with the highest upside potential, according to Wall Street analysts.
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Nio (NYSE:NIO) Stock
Chinese EV maker NIO recently reported mixed results for Q2 2025. The company missed sales estimates, as robust growth in deliveries, driven by models like the ONVO L90, was offset by the impact of price wars amid intense competition in the Chinese EV market.
Nonetheless, improved deliveries and optimism about the demand for the ES8 model have moved NIO ADRs (American Depositary Receipts) higher by 32% over the past month and more than 36% year-to-date.
Looking ahead, Nio expects Q3 vehicle deliveries in the range of 87,000 to 91,000 units, reflecting a year-over-year growth of 40.7% to 47.1%. It is worth noting that Nio’s August deliveries jumped 55% to 31,305 units, including 10,575 units of the ONVO L90, the flagship SUV of its mass-market brand.
Is NIO a Good Stock to Buy?
Reacting to the Q2 print, Mizuho analyst Vijay Rakesh raised the price target for NIO stock to $6 from $3.50, while reiterating a Hold rating. The 5-star analyst noted that Nio’s Q2 revenue and earnings were “modestly softer” compared to the consensus estimates. Rakesh added that Nio’s Q3 deliveries guidance of 89,000 units (at the midpoint), which missed the consensus of 91,100 units, indicates 47% sequential growth and a new lower average selling price (ASP) related to the Firefly/ONVO L90 ramps.
While better near-term EV demand for lower ASP models is helping, Rakesh argues that the expectation for exiting Q4 2025 at about 50,000 deliveries per month seems challenging. Overall, Rakesh believes that NIO is fairly valued at a price-to-sales (2026) multiple of 0.8x, as near-term revenue and delivery tailwinds are offset by margin challenges as models ramp.
Currently, Wall Street has a Moderate Buy consensus rating on Nio stock based on six Buys, five Holds, and one Sell recommendation. The average NIO stock price target of $5.95 indicates that the stock is fully valued at current levels.
XPeng (NYSE:XPEV) Stock
Let’s look at another Chinese EV maker, XPeng, which has seen its stock rally about 68% year-to-date. XPeng impressed investors with a 125% year-over-year jump in its Q2 revenue. Moreover, the company reported a 63% year-over-year reduction in its second-quarter net loss attributable to shareholders, thanks to robust deliveries and improved margins.
XPeng is benefiting from continued demand for the Mona M03 and P7+ sedans, the updated versions of the G6, G9, and X9 models, and the launch of the new G7 SUV.
Looking ahead, XPeng is confident about continued growth, backed by its focus on innovation and overseas expansion. In the first half of the year, XPEV’s overseas deliveries surpassed 18,000 units, increasing more than 200% year-over-year.
Is XPEV a Good Stock to Buy?
Recently, Jefferies analyst Alexious Lee reiterated a Buy rating on XPeng stock with a price target of $29. The 4-star analyst hosted a post-result non-deal roadshow (NDR) for XPeng in Hong Kong. Lee noted that XPeng’s first-half results beat expectations, thanks to solid margins from economies of scale.
Lee sees a clear path to profitability by the fourth quarter of this year, with the G7 and new P7 models set to start mass deliveries. Lee stated that he views XPeng’s “tech DNA as the most differentiated moat,” which is combining rapid product innovation, AI leadership, and global expansion to bolster its place as a top-tier EV maker. Further, Lee believes that the CEO’s share buyback reflects confidence in XPeng’s trajectory.
Wall Street has a Moderate Buy consensus rating on XPeng stock based on nine Buys, two Holds, and one Sell recommendation. The average XPEV stock price target of $25.75 indicates about 30% upside potential.
Tesla (NASDAQ:TSLA) Stock
Tesla stock has been under pressure this year due to concerns about weak deliveries, CEO Elon Musk’s political distractions, and a lack of innovation. The stock is down 13% year-to-date and has underperformed the broader market.
However, TSLA stock has recovered 14% over the past month due to optimism about the company’s full self-driving (FSD) technology, the continued rollout of its robotaxi service, and prospects for Optimus, its humanoid robot.
Moreover, investors cheered the decision of Tesla’s board to approve a $1 trillion pay package for CEO Musk, contingent upon his achieving certain milestones.
Is TSLA Stock a Buy, Sell, or Hold?
Reacting to the board’s proposed pay package for Musk, Stifel analyst Stephen Gengaro called the milestones “very aggressive.” The 4-star analyst added that achieving these targets would “clearly require sustained executional excellence” and strong growth in auto deliveries, FSD success, robotaxi traction, and robust success of the Optimus humanoid robot.
Gengaro stated that the unprecedented pay package clearly incentivizes Musk to lead Tesla for the long term. The analyst reiterated a Buy rating with a price target of $440.
Overall, Tesla scores a Hold consensus rating based on 14 Buys, 14 Holds, and eight Sell recommendations. The average TSLA stock price target of $309 indicates about 12% downside risk from current levels.
Conclusion
Wall Street is cautiously optimistic about Nio and XPeng stocks, but sidelined on Tesla. Analysts see higher upside potential in XPEV stock than in the other two EV stocks. XPeng’s robust deliveries in recent quarters, despite intense competition in the Chinese EV market, solid execution, and improving margins support analysts’ bullish stance.