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TSLA, RIVN, NIO: 3 EV Stocks to Gain in 2023, Says Analyst
Stock Analysis & Ideas

TSLA, RIVN, NIO: 3 EV Stocks to Gain in 2023, Says Analyst

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Mizuho analyst Vijay Rakesh sees a challenging auto end-market in 2023. However, he is bullish on TSLA, NIO, and RIVN stocks.

Mizuho Securities’ Vijay Rakesh believes that the high-interest rates and soaring energy prices will impact the affordability of cars and hurt the end market demand for vehicles in 2023. While the analyst sees slowing global auto sales, he expects EVs (Electric Vehicles) to continue to grow. He recommends a Buy on the shares of Tesla (NASDAQ:TSLA), Rivian Automotive (NASDAQ:RIVN), and Nio (NYSE:NIO). 

Rakesh stated, “We believe global Auto sales are slowing, though production (LVP) is improving modestly as supply chain improve. The result is sliding auto prices and increasing dealership inventories. We also see interest rates trends impacting consumer demand near-term – a challenge for Auto and EV OEMs globally.” 

Despite the challenges, Rakesh expects EV penetration to improve. This would support TSLA, RIVN, and NIO. However, he reduced his price target on these three stocks due to consumer headwinds. 

While Rakes is bullish on these EV stocks, let’s check how they stack up on TipRanks’ stock analysis tools. 

Is TSLA a Buy or Sell?

Supply shortages, increased competition, and the Twitter nightmare lowered Tesla stock. TSLA stock has lost about 64% of its value year-to-date. However, most Wall Street analysts maintain their bullish stance on TSLA stock. 

On TipRanks, TSLA stock has received 19 Buy, 10 Hold, and two Sell recommendations for a Moderate Buy consensus rating. Furthermore, analysts’ average price target of $272.41 implies a stellar 117.32% upside potential. 

It’s worth highlighting that hedge funds have bought the dip in TSLA stock. Our data shows that hedge funds bought 1.1M TSLA stock last quarter. However, insiders, including its CEO, Elon Musksold TSLA stock. Overall, TSLA stock has a Neutral Smart Score of six. 

What is the Prediction for RIVN Stock?

Production challenges have weighed on Rivian stock. Like TSLA, analysts are cautiously optimistic about RIVN stock. It has received 12 Buy, four Hold, and two Sell recommendations for a Moderate Buy consensus rating. 

Moreover, analysts’ average price target of $42.13 implies 113.53% upside potential.

While Street is cautiously optimistic about RIVN, hedge funds sold 442.1K shares in the last three months. Meanwhile, RIVN stock has an Underperform Smart Score of two on TipRanks. 

Is NIO a Buy, Sell or Hold?

Nio stock is down about 64% year-to-date. Despite the significant correction, NIO stock carries a Moderate Buy consensus rating on TipRanks. It has received eight Buy and four Hold recommendations. Moreover, analysts’ average price target of $16.31 implies an upside potential of 44.46%. 

TipRanks’ data shows that hedge funds are optimistic about NIO and acquired 536.5K shares last quarter. Also, Nio stock sports an Outperform Smart Score of eight on TipRanks.

Bottom Line  

The significant decline in shares of these EVs makes them attractive. However, competitive and macro headwinds could pose challenges. While TSLA, RIVN, and NIO stock command a Moderate Buy consensus rating on TipRanks, only Nio has an Outperform Smart Score on TipRanks. 

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