Wall Street analysts pick their favorite Tesla alternatives for 2022

Published Tue, Dec 21 202111:57 PM ESTUpdated Wed, Dec 22 202112:15 AM EST

Tesla may be the best known electric vehicle maker in the world, but investors can find opportunity in other EV makers, according to several analysts that closely follow the sector. Wedbush analyst Dan Ives said in a note to clients on Monday Dec. 13 that the EV sector represents a massive market opportunity with potentially multiple winners. "We believe 2022 will be an inflection point year for the EV industry as the stage is set for massive consumer demand in the year ahead," Ives said. GM , Ford and VW are all "laser focused on the EV revolution," Ives said, adding that there will be an "unprecedented conversion to EVs in 2022" as more consumers are "attracted to the innovative designs, improved battery technology, lower price points, and environmental backdrop of buying an EV." EVs currently represent only 3% of autos globally today, but Wedbush believes that figure will rise to 5% by the end of 2022, and 10% by the end of 2025. In the next decade, the investment firm expects the EV market to ultimately grow into a $5 trillion industry where Tesla competes against a number of other players. " Of the $5 trillion green tidal wave of EV spending expected over the next decade, we believe $2.5 trillion of this is Tesla's to own with an iron grip on the market today, with the other $2.5 trillion up for grabs among the 100+ OEMs [original equipment manufacturer] going after EVs," Ives wrote. U.S.-based Rivian will help pave the way for a new EV market on pickups and SUVs, he added. "We believe Rivian is in a very strong competitive position on the EV consumer luxury front," Ives said. Rivian raised more than $10 billion in funding before going public in November in an IPO that saw its stock pop. Rivian, which counts Amazon and Ford as investors, says it has 55,400 preorders for its R1S SUV and R1T pickup truck and a contract to build 100,000 electric vans with Amazon by 2030. Elsewhere, GM has a "golden opportunity" to lay the groundwork and ultimately convert 20% of its massive customer base to EVs by 2026 and north of 50% by 2030, Ives said. JPMorgan There are several European automakers that investors should also consider nex