Tesla (NASDAQ:TSLA) finally began rolling out the long-awaited Cybertruck last week. After waiting for years to see the futuristic vehicle’s debut, fans and investors alike were excited to see it on the road.
However, Wall Street analysts predict that it won’t move the needle for TSLA stock and so far, they’ve been correct. That might be because the product isn’t living up to the expectations set by CEO Elon Musk. The Cybertruck’s promised range actually requires a separate battery pack that takes up space in the truck’s bed.
And as The Verge reports:
“Musk had no interest in turning the highly successful Model 3 into a truck. Instead, he wanted something straight out of Blade Runner. The result? Angular, dystopian, impractical, and depending on who you ask, kind of goofy-looking. The stainless steel body would emphasize every scratch and fingerprint. The misaligned panels were familiar to anyone who’s owned a Tesla. The truck bed couldn’t even hold that much stuff. And the windshield wiper… well, let’s just say it won’t be doing much wiping.”
Criticisms of the Cybertruck don’t stop there. Ryan Cooper of The American Prospect describes it as “just possibly the dumbest vehicle ever produced,” due to the many problems with its design that are likely to make scaling production difficult.
These scathing reviews are likely to steer potential buyers away from the Cybertruck and toward companies turning out better products. Thankfully for investors, several companies have well-established electric trucks that have already helped drive growth for EV stocks.
These companies have successfully held their own against Tesla. That’s not likely to change in the age of the Cybertruck.
Rivian (RIVN)
Rivian (NASDAQ:RIVN) is a company that has stood its ground in a volatile 2023. Shares are up more than 30% over the past six months, and Wall Street analysts remain bullish on it. Needham has been pounding the table on the company, describing Rivian as uniquely positioned to ride out the current market conditions.
While Rivian’s trucks are expensive, the company recently took a major step forward and made its R1T electric pickup available for leasing in 14 states. That could help get more trucks onto the road as more consumers become familiar with Rivian’s technology.
Additionally, Rivian is coming up on the end of its exclusivity contract with Amazon (NASDAQ:AMZN), which will enable it to make deals with new partners. As InvestorPlace contributor Vandita Jadeja sees it, this earns it a place among the best EV stocks to buy for the coming year.
Ford (F)
Following the recent United Auto Workers (UAW) strike, Ford (NYSE:F) is still struggling to regain lost ground. That doesn’t mean it won’t bounce back, though.
This respected legacy automaker has a wide array of vehicles, including the classic F-150 pickup truck which it has wisely taken electric. This model is well known to American buyers who have chosen to drive it for generations. Ford has allowed them to continue driving their favorite truck while saving on fuel costs. Reviews of the F-150 Lighting have been positive, especially as the truck’s functionality extends beyond on-road travel. Per WIRED:
“You can start to think of this as less of a truck, and more of a rolling battery bank for off-grid homes. For those with solar systems who might otherwise have shelled out tens of thousands of dollars on an equivalent amount of home battery storage, this is a mobile battery 10 times the size of a 13.5-kWh, $9,200 Tesla Powerwall … one that you can drive. For a certain type of buyer, that makes the F-150 Lighting a subsidy simply by existing.”
Despite its recent losses and production delays, Ford is well equipped to be back on track in 2024. At the same time, the UAW could be coming for Tesla, which might make it even harder for the company to meet its production goals for the Cybertruck and other vehicles. Snapping up F stock now while it is still trading at low levels could be an excellent move for investors who don’t mind waiting for EV market conditions to improve.
EV Stocks to Buy: General Motors (GM)
For decades, Ford’s biggest rival has been Chevrolet. And even in the age of electric vehicles, some things don’t change. Owned by General Motors (NYSE:GM), Chevy has followed Ford’s example with the 2024 Chevrolet Silverado EV Work Truck, the EV version of a truck that American drivers have long loved. “It’s designed for those who want to get the job done without buying extra features,” reports TechCrunch. But more than that, this new offering should give GM stock an important edge in 2024 as the company gears up for increasing competition.
That’s not the only electric truck that GM has to offer, though. Its brand portfolio also includes the GMC Hummer, which it took electric in 2021. In 2022, InvestorPlace‘s Luke Lango stated that the electric Hummer proved something important: The e best EV stocks to buy weren’t Tesla but the companies that could successfully chip away at Tesla’s market share. The problems regarding the Cybertruck suggest that this thesis will prove correct in the coming year.
On the publication date, Samuel O’Brient did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.