Tesla (NASDAQ: TSLA) is ending 2024 on a strong note, having breached the $400 resistance level, buoyed by a stronger Q3 earnings report and post-election optimism.
Moving into the new year, the market anticipates the Texas-based electric vehicle (EV) manufacturer to build on its autonomous technology, with its venture into artificial intelligence (AI) expected to play out.
At the same time, Wall Street analysts, such as Wedbush Securities’ Dan Ives, foresee Tesla thriving under a Donald Trump administration, thanks to anticipated friendlier regulations.
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Tesla stock price, trading at $405, has rallied 62% in 2024. The year began on a weaker note due to slowed demand in the EV sector. If the current gains are sustainable for the rest of 2024, it will be a good starting point for the new year.
However, other players in the space are looking to catch up. To this end, with insights from OpenAI’s ChatGPT-4o, Finbold has identified the following two EV companies with the potential to rival the Elon Musk-led firm in 2025.
Rivian (NASDAQ: RIVN)
Although Rivian (NASDAQ: RIVN) has faced challenges in recent quarters, particularly regarding its supply chain constraints, ChatGPT views the company as a formidable challenger to Tesla.
According to the AI platform, Rivian has carved a niche with its adventure-oriented EVs, such as the R1T electric pickup truck and the R1S SUV, catering to consumers seeking off-road capabilities.
Beyond its consumer vehicles, Rivian has secured a strategic partnership with Amazon (NASDAQ: AMZN), delivering electric delivery vans for the tech giant’s sustainability initiatives, which ChatGPT sees as key fundamental.
ChatGPT noted that despite operating at a loss, Rivian remains one of the most promising EV startups, supported by strong cash reserves.
In addition, Finbold earlier reported that investor optimism around RIVN increased after Volkswagen raised its planned investment in Rivian to $5.8 billion, launching a joint venture focused on next-gen electric architecture and software.
Overall, the company is seeking to nab its recovery, which has been hampered by several hurdles. For instance, Rivian missed Q3 revenue expectations, reporting $874 million against the forecasted $990 million and posting a $1.1 billion loss.
Due to supply chain issues, production guidance was reduced from 57,000 to 47,000–49,000 units.
By press time, RIVN was trading at $14.24, with minimal losses of about 1.4% in the last 24 hours. Year-to-date, the stock is down over 30%.
XPeng (NYSE: XPEV)
According to ChatGPT-4o, the Chinese EV maker has gained recognition for its advanced driver-assistance systems and mid-to-high-end models, such as the G3 SUV and P7 sedan.
With a strong focus on autonomous driving technology, XPeng (NYSE: XPEV) aims to generate additional revenue streams through software-based services.
ChatGPT also sees the firm’s growth potential stemming from its ability to increase vehicle deliveries steadily. At the same time, the company’s presence in China—the world’s largest EV market—combined with its international ambitions, sets the stage for substantial growth.
Notably, XPeng’s deliveries are rising, driven by the Mona M03 and P7+ models. Despite improving sequentially to 8.6%, XPeng’s margins remain relatively low.
The company projects strong Q4 deliveries of 87,000 to 91,000 EVs, reflecting a 51% year-over-year growth, giving it the ideal foundation moving into 2025.
Similarly, like Rivian, XPEV has faced weakness throughout 2024, with the equity trading at $13.16 as of press time. In 2024, the stock has dropped about 6%.
In summary, Tesla’s fundamentals make it a strong contender to maintain its leading role in the EV sector. However, if Rivian and XPeng focus on delivering EVs targeting mass adoption and turning a profit, they stand a chance of eating into Tesla’s market share.
Featured image via Shutterstock
