Tesla Inc. (NASDAQ: TSLA) shares have recovered somewhat since April 2025 but remain down about 15% year-to-date (YTD). The largest car company in the world by market value has experienced analyst downgrades in recent weeks. It also faces the possibility of weak Q2 deliveries amid a weeklong Cybertruck and Model Y production pause. Perhaps most concerning for the Elon Musk-led EV firm, Chinese rival BYD Co. surpassed Tesla in global battery electric vehicle sales for 2024, and European EV sales in April of this year.
With Tesla facing mounting challenges and Chinese EV companies on the rise, investors may be wondering if there are American rivals that may be able to capitalize on an opportunity to capture additional market share. Two of the prime candidates are Rivian Automotive Inc. (NASDAQ: RIVN) and Lucid Group Inc. (NASDAQ: LCID). Though analysts are cautious about both of these firms (as well as Tesla) given a less-favorable regulatory environment, they view both Rivian and Lucid as having some upside potential, while analysts expect Tesla shares to continue to fall in the near term.
