Tesla (NASDAQ:TSLA) is the undisputed leader among electric vehicle (EV) manufacturers that continues to grow top-line and profit margins at an enviable pace. On the other hand Arrival (ARVL) is a recent IPO that has the potential to crush the broader markets going forward. Which stock is a better buy today?.After a whirlwind 2020 where electric vehicle (EV) stocks were on an absolute tear, the first five months of 2021 have seen investors book profits and take a breather. Further, Wall Street was also worried about rising inflation rates and steep valuations of growth stocks that contributed to this decline.
However, every market correction provides investors a chance to buy quality stocks at a lower multiple. Here, we look at two such companies in the EV space that should be on the buying radar of investors. One is a market leader in Tesla (TSLA) while the other is a far smaller company- Arrival (ARVL) which is looking to gain traction in the highly disruptive EV segment.
The shift towards clean energy solutions will be a key driver for EV manufacturers making them solid long-term bets. Let’s see which between Tesla and Arrival is the better EV stock right now.