In the highly competitive electric vehicle (EV) market, major players such as Tesla (TSLA), Rivian Automotive (RIVN), and Lucid Group (LCID) have encountered significant headwinds, with demand not meeting expectations. In this article, I will use the TipRanks Stock Comparison Tool to explain why I am bullish on TSLA and RIVN, and bearish on LCID. I’ll also outline why I consider Tesla to be the best choice among the three automakers.
Despite a stretched valuation, I am bullish on Tesla. The company’s shares currently trade at a forward P/E ratio of 97 times future earnings estimates, which is about 15% below its five-year average. This is largely due to a substantial decline of over 40% in the share price since it peaked in 2021, driven by weaker-than-expected EV demand and increased competition. Still, Tesla remains the top-selling EV maker globally.
Tesla had aimed for 50% growth in vehicle sales and production…
