Tesla (NASDAQ: TSLA) has been on a tear this year.
The electric vehicle giant has gained 255% so far this year, and is up nearly 544% over the last 12 months.
As Tesla speeds unrelentingly higher, other electric vehicle makers have entered the market and have been staging rallies of their own.
Chinese electric vehicle maker Nio (NYSE: NIO) is up 246% year-to-date, Nikola (NASDAQ: NKLA) is up 239%, Li Auto (NASDAQ: LI) gained 43% in its market debut last Thursday, DiamondPeak Holdings (NASDAQ: DPHC) shares rose more than 16% on Monday after the special purpose acquisition company announced it is merging with EV maker Lordstown Motors, and Workhorse (NASDAQ: WKHS) has gained a jaw-dropping 456% since the start of 2020.
But a pair of experts say two stocks in the bunch are the best bets in the sector now.
Boris Schlossberg, managing director of FX strategy at BK Asset Management, said this week that he believes the electric vehicle market is still too speculative to make a solid bet now, but he does like one stock.
“Nikola is the first real interesting competitor to Tesla, because it’s providing the first true value proposition with a 600-mile range and the ability to essentially create a power plant out of its truck for a lot of the construction industry,” Schlossberg said. “So to me, the big question is if Nikola can deliver even 70% of what it promises, I think it becomes an interesting viable competitor.”
Oppenheimer’s Ari Wald, however, sees an even better opportunity for Nio, and said “the stock has consolidated since peaking in July and I think this consolidation, it’s allowing previously overbought conditions to recede. It’s allowing the moving averages to catch up to the price and I think what you’re going to see is a resumption of the uptrend.”
“In terms of trading levels, $10.46 is an important support level,” Wald, Oppenheimer’s head of technical analysis, said. “That was the stock’s July low. As long as the stock is above there, our assumption is that this is going to make a new high above that July peak.”