Macro uncertainties, tariff woes, and intense competition are weighing on the performance of electric vehicle (EV) makers. Nonetheless, some EV companies are delivering resilient performance and are thriving despite ongoing challenges. We used TipRanks’ Stock Comparison Tool to place Tesla (TSLA), Rivian (RIVN), and XPeng (XPEV) against each other to find the best EV stock, according to Wall Street analysts.
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Tesla (NASDAQ:TSLA)
Tesla stock has risen more than 27% over the past month due to favorable developments on the tariff front and CEO Elon Musk’s reassurance to investors that he will significantly reduce his time in leading the Department of Government Efficiency (DOGE) to focus on the company. On Tuesday, Tesla stock rallied in reaction to the European Union tariff delay and Musk’s statement on the social media platform X about his plans to be “super focused” on his businesses.
However, TSLA stock is still down 10% year-to-date due to the company’s dismal Q1 2025 results and loss of market share in key markets like China and Europe amid intense competition. Based on the latest data of the European Automobile Manufacturers’ Association, Tesla sold 7,261 cars in Europe in April, reflecting a 49% year-over-year decline amid political backlash, growing rivalry, and temporary factory shutdowns.
Despite near-term challenges, Tesla Bulls are confident about the company’s growth prospects and remain upbeat about its robotaxis and humanoid robot ambitions.
Is TSLA Stock a Buy, Hold, or Sell?
On Tuesday, UBS analyst Joseph Spak reiterated a Sell rating on Tesla stock with a price target of $190. Spak said that UBS’ Global EV Adoption Outlook Consumer Survey indicates declining interest in Tesla in the U.S., China, and Europe. In the U.S., the survey indicated a Tesla “saturation,” limited vehicle lineup, and affordability concerns. Meanwhile, in China, the analyst noted intense competition, with the EV giant no longer being seen as the technology leader.
Coming to Europe, Spak believes that there may have been brand damage from Musk’s political activities. While there is enthusiasm over robotaxis and humanoid robots, Spak contends that Tesla’s automotive business is witnessing mounting pressures, with a source of earnings/cash flow potentially at risk with the removal of the California waiver.
Overall, Wall Street is sidelined on Tesla stock, with a Hold consensus rating based on 16 Buys, 10 Holds, and 11 Sell recommendations. At $282.70, the average TSLA stock price target implies downside risk of 22.1%.
Rivian Automotive (NASDAQ:RIVN)
Rivian stock has advanced 16% so far this year, with investors noticing the American EV maker’s cost management efforts to improve its profitability. The company reported a lower-than-anticipated loss per share and achieved its second consecutive quarter of gross profit in Q1 2025, which helped unlock a $1 billion investment from Volkswagen.
However, Rivian lowered its 2025 delivery guidance to the range of 40,000 to 46,000 vehicles from 46,000 to 51,000 units, and raised its capital expenditures guidance to advance the R2 platform for a 2026 launch. The company expects production to be lower during the second half of 2025, as it idles and retools its Illinois plant for a month in preparation for its new R2 offering. Rivian hopes to revive demand through the launch of its less-expensive R2 SUV.
Is RIVN Stock a Buy, Hold, or Sell?
Following the Q1 2025 print, RBC Capital analyst Tom Narayan increased the price target for Rivian Automotive stock to $14 from $10 but reiterated a Hold rating. The 4-star analyst’s increased price target reflects the revised revenue outlook and a re-rated EV/Sales multiple of 1.5x, up from 1.0x. Narayan noted that Rivian lowered its 2025 delivery guidance and reduced revenue estimates but increased projected gross profit outlook to $301 million from $205 million, backed by regulatory credits.
The analyst added that tariffs could increase costs by a “few thousand dollars” per unit in 2025, which is expected to prompt the company to secure U.S.-manufactured cells by 2027. He also highlighted that Rivian’s liquidity stood at $8.5 billion in Q1 2025, with additional funding commitments, including $3.5 billion from Volkswagen, $1 billion contingent on positive gross profit in late 2024, and a $6.6 billion Department of Energy (DOE) loan. However, Narayan remains on the sidelines on RIVN stock due to persistent concerns about gross profit sustainability beyond regulatory credits, potential DOE loan delays, and the impact of the Inflation Reduction Act (IRA) removal on price-sensitive R2/R3 offerings.
Overall, Wall Street has a Hold consensus rating on Rivian stock based on seven Buys, 15 Holds, and three Sell recommendations. The average RIVN stock price target of $14.74 implies a possible downside of 4.1% from current levels.
XPeng (NYSE:XPEV)
Chinese EV giant XPeng recently impressed investors with its stellar Q1 2025 results. The company reported a narrower loss per share compared to the prior-year quarter, fueled by a 141.5% jump in revenue. Notably, XPeng’s Q1 2025 deliveries surged by an impressive 330.8% year-over-year to 94,008 vehicles.
XPeng is witnessing solid demand for its models like the MONA M03 sedan and the P7+. The company is gearing up to capture further growth through its upcoming releases, including the G7 in the RMB 250,000 SUV market, the new generation P7, a luxury sports coupe in the RMB 300,000 segment, and the Kunpeng series.
Despite tariff concerns, XPeng is bullish about its overseas business and expects to deliver rapid growth over the next three years. The company’s overseas deliveries surged by more than 31,700 year-over-year in Q1 2025.
Is XPeng Stock a Good Buy?
Impressed by the Q1 results, Macquarie analyst Eugene Hsiao upgraded XPeng stock to Buy from Hold and increased the price target to $24 from $22. Hsiao noted that the 50 basis points quarter-over-quarter expansion in Q1 2025 vehicle margin to 10.5% was driven by better cost controls and scale benefits. He added that Service margins reached a new high of 66%, thanks to better aftermarket margins.
The 5-star analyst highlighted that XPeng continues to execute ahead of expectations despite a challenging EV market in China. He sees the possibility of solid launches of the M03 MAX and G7 to drive momentum. Hsiao is more confident about management execution, given recent vehicle margin expansion. The analyst raised his volume forecasts by 5% for 2025 to 473,000 units to reflect strong Q1/Q2 sales trends, which drove FY25 sales estimate higher by 6% and reduced the net loss estimate. He sees blockbuster new models, faster-than-expected breakeven, rapid overseas expansion, and commercialization of humanoid/eVTOL as potential catalysts for XPEV stock.
With eight Buys, two Holds, and one Sell recommendation, Wall Street has a Moderate Buy consensus rating on XPeng stock. The average XPEV stock price target of $26.36 implies about 32% upside potential from current levels. XPEV stock has already rallied more than 63% year-to-date.
Conclusion
Wall Street is sidelined on Tesla and Rivian stocks but cautiously optimistic on XPeng stock. Despite a challenging and competitive backdrop in the Chinese EV market, XPeng has been delivering resilient performance. Even after an impressive year-to-date rally, Wall Street sees continued upside potential in XPEV stock, unlike the possible downside expected in TSLA and RIVN stocks.