Top 2 Alternatives To Tesla After The Musk-Trump Breakup

Thursday’s dramatic fight between President Trump and Tesla CEO Elon Musk, his political ally and donor, sent Tesla stock down more than 14%.

This is just the latest episode in a long string of bad news for Tesla TSLA.

The stock, which was trading at around $300 per share on Friday, is down 25% for the year but has gained 11% over the past three months. Poor domestic and international sales, as epitomized by Tesla’s market share in car-mad Germany being down 36% year-to-year, concerns over robot taxi safety after media reports of a fatal car crash involving Tesla's driver-assistance software and Musk's political forays have stacked the deck against the stock.

With Tesla’s future looking increasingly uncertain, investors looking to benefit from the rise of electric cars are starting to look elsewhere.

Even as EV sales grow, totaling 20% of new car sales in 2024 globally, the maladies holding EVs back are no secret. In 2025, subsidy schemes are winding down across the globe, tariff fears are fueling price hikes that challenge cash-challenged consumers, charging stations remain spotty, and lower oil prices have combined to throttle electric vehicle (EV) adoption.

Tesla’s woes are just one example of this trend.

It's been a bumpy ride for electric vehicle stocks near the midpoint of 2025, with the KraneShares Electric Vehicles Future Mobility Index benchmark ETF up 2.0% in 2025. The fund, which tracks the Bloomberg Electric Vehicle Index, has been a portfolio drainer for a while now—down over 15% over the past three years.

One saving grace of late is China, where low battery prices, attractive trade-in deals, and a supportive government have helped EV sales rise by 40% in 2024 on a year-to-year basis. By the end of 2024, China accounted for two-thirds of all worldwide EV sales – that's up from half of all sales in 2021, according to the International Energy Agency's Global EV Outlook for 2025.

"The EV market will continue to depend upon a mix of subsidies, incentives, and favorable trade policies," said David Nicholson, chief technology advisor at The Futurum Group in San Francisco, Cal. "Against this backdrop, Chinese EV manufacturers will face varying levels of protectionism. That will be the dominant theme moving forward. “How much will the rest of the world allow China to access its EV consumers?”

With EV long-term prospects on more solid footing against 2025 share price woes, which electric vehicle stocks resonate in 2025? Here's a snapshot.

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Tesla Inc.

Many of Tesla's current problems are short-term, with tariffs and political skirmishes involving Musk having only so much staying power. That doesn't mean Tesla is in a good spot, particularly with the proposed "Big Beautiful Bill" recently passed by the U.S. House of Representatives, which is looking to clear the Senate in June and appears to have set off the Musk-Trump feud. Among other features, the legislation curbs or, in some cases, outright eliminates EV and green energy tax credits introduced in 2022's Inflation Reduction Act.

That's not good news for EV giants like Tesla, which count on credits to move vehicles. According to J.P. Morgan analyst Ryan Brinkman, if the tax act is passed with the EV credits neutered, Tesla could cost $2 billion. Brinkman has a sell call on TSLA, with a steep 65% slide in Tesla stock in play the following year.

However, if you have full confidence in Tesla's ability to bring new transport technologies like robot taxis to the market, then Tesla makes sense.

"Tesla’s value is based more upon future expectations of their ability to deliver in AI and Robotics than it is based on a realistic assessment to grow market share in vehicle sales," Nicholson said. "If you believe in the robotics story in particular, you buy or hold Tesla stock."

BYD Co. Ltd.

BYD BYDDY, China's leading EV manufacturer, is conducting a cost-cutting campaign amid a slowing Chinese economy, expanded in-country electric vehicle competition, and collapsing EV sales in Europe. These factors are weighing heavily on China's auto manufacturing sector.

Yet BYD continues to dodge the deluge. The stock is up 53.18% year-to-date and up 6% over the past month, as the Shenzhen-based automaker has cut prices on 22 EV and hybrid vehicle models and will continue to do so through the end of June. Speculation is rising that BYD will continue to keep its EV price tags lower as it eventually edges into the US market, which would constitute a big problem for Tesla and major US automakers.

Analysts are backing the stock, with Macquarie holding its Buy Rating on BYD, according to a late May research note, and Erste Group initiating coverage with a Buy.

Rivian Automotive Inc.

Rivian RIVN has been picking up steam lately, with its stock price up 23% over the past three months, and it has an intriguing story to tell. The EV manufacturer is aiming for the SUV and truck-driving consumer, which can be a tough sell in a downbeat economy. The numbers back that sentiment up, with deliveries down from 51,000 in 2024 to an estimated range of 40,000 to 46,000 in 2025, as high prices keep would-be buyers on the sidelines.

Yet RIVN is making strides in other areas. The company has a big delivery van deal with Amazon and has partnered with Volkswagen in a $5.8 billion software and services deal that helped RIVN net $167 million in the first quarter of 2025.

Revenues were up 3% for the first quarter of 2025 and the company has recorded two straight quarters of gross profit and production on its lower-cost R2 EV model (costs clocked in at $45,000 compared to $76,000 for Rivian's R1 line).

Rivian investors may have to show patience for a company focused on the long haul, but analysts see a big upside. Exhibit A is Exane BNB Paribas' James Picariello, who recently issued a Buy rating on the stock with a $20 price target, up above 40% from where the stock is trading as of writing.

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