The Tesla stock price has collapsed this year, erasing almost $1 trillion in value. TSLA has crashed by over 52% from its highest level this year, and is hovering at its lowest level since October last year. This article explores some of the top Tesla rivals to buy for strong gains in the future.
To be clear: Tesla stock has crashed and rebounded before. For example, it crashed from a high of $413 in 2021 to a low of $102.25. It then bounced back and reached almost $500 last year. As such, while these Tesla rivals are good buys, odds that the TSLA stock will rebound cannot be ruled out.
Best Tesla rivals to buy
Some of the best Tesla rivals to buy are popular Chinese EV stocks like Rivian, XPeng, and Li Auto.
Rivian (RIVN)
RIVN stock chart | Source: TradingView
Rivian is one of the top Tesla rivals to buy and hold this year. While Rivian’s fundamentals are not all that strong, technicals suggest a strong surge in the coming months.
The weekly chart shows that the RIVN share price bottomed at $10.35 since 2024. It has failed to move below this level several times since last year.
That is a sign that the Rivian share price has formed a triple-bottom pattern, which is a popular bullish reversal sign.
The stock is in the accumulation phase of the Wyckoff Theory, a popular approach. This phase is characterized by a stock moving sideways. It is then followed by the markup phase, which has higher demand than supply. A stock typically moves in a parabolic move when it moves in this phase.
Therefore, the stock will likely bounce back in the next few months. If this happens, the next point to watch will be at $28.22, the highest swing in July 2023, which is about 160% above the current level. A drop below the support at $10 will invalidate the bullish view.
XPeng (XPEV)
XPeng is another popular Tesla rival to consider. On the weekly chart, we see that the stock has risen in the last four consecutive weeks, and is hovering at its highest level since July 2022.
XPeng stock has moved above the crucial resistance level at $23.6, the highest swing in July 2023. This was an important level since it was the upper side of the cup and handle pattern. It was also higher than the 23.6% Fibonacci Retracement level.
The XPeng share price has moved above the 50-week and 25-week moving averages, a bullish sign. Also, momentum oscillators like the Relative Strength Index (RSI) and the MACD have continued rising.
Therefore, the XPeng stock price will likely keep rising as bulls target the next key resistance at $40, the 50% retracement level, which is about 60% above the current level.
Read more: Xpeng to mass produce flying cars in 2026
Li Auto (LI)
Li stock chart by TradingView
Li Auto is another Tesla rival to buy for big gains ahead. The stock has jumped from $17.55 in June last year to $30. It has moved above the 50-day and 25-day moving averages.
Li Auto stock has moved above the 38.2% Fibonacci Retracement level. Like XPeng, Li Auto share price has formed a cup and handle pattern, a popular bullish continuation sign. It has also moved above the ascending trendline that connects the lowest swings since September last year.
Therefore, the stock will likely continue rising ahead of its quarterly earnings later this week. The target to watch will be at the 61.8% retracement at $35.47, up by 20.5% from the current level.
Read more: Here’s why Li Auto stock price could explode higher after earnings
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