Tesla (NASDAQ:TSLA)

Tesla (NASDAQ:TSLA) shares have shed 7% of their value over the past one month but are still up 36.4% year-to-date. The decline in the leading electric vehicle (EV) maker’s first-quarter earnings confirmed investors’ concerns about its aggressive price cuts impacting margins. Investors are also worried about the growing competition in the EV space from emerging players like BYD (BYDDY), Nio (NIO), Rivian (RIVN) as well as from legacy automakers like Ford (F) and General Motors (GM).

Tesla bulls laud its scale and cost advantage, cutting-edge technology, and the financial muscle to support its expansion plans. However, some analysts remain wary about CEO Elon Musk’s claims about the company’s full-self driving (FSD) feature, the stock’s steep valuation despite intense rivalry in the EV market, and Musk’s distraction due to his other ventures. Meanwhile, Tesla recently hiked the prices of some of its models, addressing some concerns about aggressive price cuts.

Wall Street has a Moderate Buy consensus rating on Tesla based on 15 Buys, 11 Holds, and four Sells. The average price target of $203.64 implies 21% upside.

Let’s now take a look at three emerging EV players and their growth potential.