Traders Say These 2 EV Stocks Are Worth Watching Now

Traders say one EV maker is a better long-term bet, while the other could see a big gain in the short-term. Here’s why.

Tesla (NASDAQ: TSLA) shares fell their most in three weeks on Thursday after data released this week showed a loss in global market share for April.

The stock has underperformed so far this year, and is down more than 14% year-to-date amid growing competition, a global chip shortage, several headline-making crashes, signs of a slowdown in China sales, and a potential delay to a factory in Germany. 

But while Tesla shares have taken a hit this year after gaining nearly 750% in 2020, one strategist says the stock looks like a winner over the long term.

“Tesla’s a clear leader in revolutionizing the auto industry,” said Michael Bapis, managing director at Vios Advisors at Rockefeller Capital. “They’re a global innovation leader. With a  CEO like Elon Musk, you’re going to see them continue to develop products, to bring out new products, and while competition is heating up because we are going to move into that electric car space more than ever, I still believe they’re the clear-cut leaders.”

One new product Tesla could soon be out with is a restaurant.

Late last month, Tesla filed applications with the U.S. Patent and Trademark Office to use its “T” logo design and two other iterations of its “Tesla” stylized logo for use in the food industry. The applications are for “restaurant services, pop-up restaurant services, self-service restaurant services, take-out restaurant services.”

Musk has talked about opening up a diner in southern California for years, and tweeted back in 2018 about opening an “old-school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in LA.” Tesla chief technology officer J.B. Straubel also said at the time that the company had “already been working with restaurants” on the concept for convenience stores and food centers at its charging stations.

And in April, Musk confirmed progress on the concept, tweeting, “Major new Supercharger station coming to Santa Monica soon! Hoping to have 50’s diner & 100 best movie clips playing too. Thanks Santa Monica city!”

While a Tesla restaurant feels like noise now, Bapis says any dip in the stock is a buying opportunity.

“I would always buy this company on dips,” Bapis said. “Unless something rapidly changes with their competition over the next 12 to 18 months, I don’t see them coming down from their perch anytime soon.”

However,’s Todd Gordon says that of all the electric car makers, Nio (NYSE: NIO) might have an edge in the near term.

“They’ve all as a group retraced after the initial move higher post-Biden victory November 2020. …Most of them have pulled back,” Gordon said. “Nio saw its second significant drop of 54% after a 62% drop in early 2020. Nio actually saw a deeper pullback as we made a new low for 2020 whereas Tesla double bottomed.”

And with that steeper drop for Nio shares, Gordon sees a rebound in the making.

“While we’re above $40 in Nio, I’m interested for a trade,” Gordon said. “We could revisit the highs. I think Nio has the near-term advantage.”

Nio shares closed at $40.90 on Thursday. A return to its former high at around $67 implies a jump of nearly 64%.