EV market facing price war, EU tariffs on Chinese exports, Biden funding boosts U.S. manufacturing

From Nasdaq: 2024-07-21 11:04:20

The electric vehicle (EV) market is experiencing a price war amidst declining demand, challenging profitability. The EU has imposed tariffs on Chinese EV exports to reduce competition. However, the Biden administration’s $2 billion investment aims to boost U.S. EV manufacturing. With global EV sales increasing, investors eye companies like BYD, Tesla, and Rivian for potential growth and returns.

BYD, valued at $91 billion, boasts a 13% year-over-year increase in Q1 deliveries, showcasing its commitment to green energy solutions and strong performance. With a profitable gross margin of 21% and impressive delivery figures, analysts unanimously rate BYD stock as a “strong buy” with a price target of $72, offering a 16% upside potential.

Tesla, with a market cap of $794.8 billion, saw 62% growth in the past three months, outperforming the market. Despite geopolitical and operational challenges, Tesla exceeded Q1 delivery expectations. Key catalysts like robotaxis and FSD technology position Tesla for long-term gains. Analysts maintain a “hold” rating with a mean price target of $193.91.

Rivian, with a market cap of $16.8 billion, delivered 13,790 vehicles in Q2, surpassing expectations. A partnership with Volkswagen for next-gen software-defined vehicles (SDV) will enhance Rivian’s market presence and reduce losses. Analysts see potential in Rivian stock, with a “moderate buy” rating and a mean price target of $18.27, indicating 10% upside potential.



Read more at Nasdaq: Top 3 Must-Buy EV Stocks for July 2024