In the world of electric vehicles (EV), Tesla (NASDAQ: TSLA) reigns on high, but with predictions that 2021 will be the biggest year yet for electric powered vehicles, there is no doubt that some serious competition is emerging. For investors, these three Tesla competitors could mean a dive into the electric industry that doesn’t involve buying Tesla shares.
General Motors (NYSE: GM) was the world’s largest motor-vehicle manufacturer until the early 21st century. Looking at electric vehicles, it now has plans to produce 20 new models by 2023, alongside an investment worth $20 billion over the next five years.
General Motors has plans to bring its once-popular Hummer SUV model back, but this time as an all-electric vehicle, which could be a competitor to Tesla’s Model Y. Also on the cards are the new versions of the Chevy Bolt, with semi-automatic, hands-free drivers assist. This, in combination with the new Ultium batteries GM have manufactured, could set the company on its way to competing fully in the growing EV industry.
GM is also looking in a surprisingly different direction regarding automated vehicles. Via its subsidiary Cruise, the Chevrolet-maker is looking at ride sharing as a new avenue of business, much like Lyft or Uber, but instead as a driverless automatic. If GM can pull this off, commuting and ride sharing could change for the better, becoming greener and more sustainable.
SolarEdge (NASDAQ: SEDG) was a collaborator of Tesla’s whereby it created PV inverters that were fully compatible with Tesla’s own Powerwall storage system. Although SolarEdge has typically remained in the solar power market, with its most recent earnings showing $310 million in revenue from solar products alone, it has taken a bold step into the EV sector. Without the need to build up too much of a customer-base, SolarEdge could be a powerful rival for Tesla.
Producing the world’s first EV charging inverter, SolarEdge combines both grid power and solar power in an easy-to-use system which allows users to charge electric vehicles directly from the power of the sun. In addition, the new inverter will have the ability to charge an EV 2.5 times faster due to its solar boost function and its combined power function.
As a rival to Tesla, SolarEdge is likely to cause quite a stir as it will be in direct competition in multiple areas including solar power systems, inverters and power storage, as well as EV charging.
Often referred to as the ‘Tesla of China’, NIO (NYSE: NIO) analysts have found that its stock is now priced similarly to that of Tesla’s back in 2013 when it was in a similar phase of growth. Currently, NIO offers two premium electric SUVs and a very sleek electric coupe, in addition to being one of the registered manufacturers of the Formula E championship since 2015, producing powertrains for its NIO race team. Although it doesn’t have the range of Tesla’s fleet, it still possesses some rather impressive accomplishments for an EV company founded in 2014.
NIO has a couple of stand out services which even Tesla could take note of. First, it promises buyers up to 15 free power services per month. With one click a mobile power bank comes to your aid to charge your car whilst you carry on with your day. Another option it gives is ‘BaaS’, batteries-as-a-service, a subscription which allows users to have their battery charged, swapped, or upgraded when needed.
This company is also looking to create some of that cult-esque vibe which many innovative companies headed by strong public figures try to cultivate (ahem Tesla). For example, NIO members can utilize any of the 7 NIO House’s which contain cafes, libraries, kids clubs, and meeting rooms to meet like-minded individuals. Yet, it is something that works as NIO recently posted a record-breaking September, selling over 4’700 vehicles — up 133% YoY. This is definitely a company to watch out for over the next few years.
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Contributing Writer at MyWallSt
Poppy likes companies that go the extra mile. Her favorite stock is Amazon because she is fond of its innovation, variety, and creative solutions to sustainability.