With all eyes on Tesla (NASDAQ:TSLA) ahead of its earnings report later this afternoon, the entire electric vehicle stock sector is feeling the pinch. In fact, electric vehicle makers from the Chinese field to legacy automakers just getting in on the action are sliding today, as Tesla, too, falters against what may be a new price war in the making.
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The sector, right now, seems deeply concerned about just what the pricing data from Tesla will look like today. As Tesla goes, it seems, so too will the entire electric vehicle sector. Tesla slipped slightly in Wednesday afternoon’s trading, a development that sent much of the field down as well. General Motors (NYSE:GM) was down just over 2%, while Ford (NYSE:F) lost just over 3%. The Chinese electric vehicle sector was hit particularly hard, as Nio (NASDAQ:NIO) lost over 6%, and XPeng (NASDAQ:XPEV) lost just over 12%.
With so many different companies vying for a piece of the electric vehicle market, it’s easy to see why a swing in one might prompt a swing in all. Everyone is comparatively closely connected. This is why there’s one great piece of good news for electric vehicle stocks: the market, in general, is expanding. In 2022, worldwide sales of electric vehicles cleared the 10 million mark. With governments stepping in to offer cash incentives or otherwise penalize gas engine creation, there’s growing room for opportunity here. The electric vehicle market is not just businesses vying hotly for a slice of the pie, it’s a pie that’s still baking to this day.
XPeng took the biggest hit today, and it also offers the smallest upside potential. Analyst consensus calls it a Hold, and its average price target of $10.20 gives it just 2.77% upside potential. Meanwhile, Nio leads the way in potential. It may have taken the second biggest hit today, but analysts call it a Moderate Buy. Plus, it offers 67.83% upside potential thanks to its $14.92 average share price.
