Tesla, Nio, or Rivian? Why Choose When You Can Buy Them All, Says Top Analyst

Rakesh argues that each of Tesla $Tesla (TSLA.US)$ , Nio $NIO Inc (NIO.US)$ , and Rivian $Rivian Automotive (RIVN.US)$ are "well-positioned" electric car companies "with secular growth drivers," competing against "legacy Auto OEMs [that] struggle to balance [their] ICE/EV portfolios. In this contest between new electric technology and old automotive dinosaurs struggling to evolve in the new era, Rakesh is putting his money firmly on the side of the new kids on the block -- and he assigns "buy" ratings across the board to Tesla (with a just-increased price target of $1,300), Nio (price target: $65), and Rivian, too (price target: $145).

With Tesla, the bull case is obvious. Tesla just announced 71% year over year growth in EV deliveries in its fiscal fourth quarter, and even greater sales strength among its newest models, the Model 3 sedan and Model Y crossover, sales of which grew 84%. Sales growth for the full year was pretty impressive as well -- up 87% -- as Tesla approached 1 million units in annual sales. And the analyst predicts that Tesla's sales performance will remain "strong into 2022E with Texas/Berlin ramps and continue[d] strong EV demand."

According to Rakesh, investors can anticipate Tesla will grow its sales another 36% this year, and 31% more in 2023 -- or perhaps even better than that, given that overall EV sales worldwide are expected to climb 30% annually through 2030, and that Tesla is the leader in this market.

Part of the content is taken from Yahoo.