Tesla (NASDAQ:TSLA) has been one of the most traded stocks in the world for some time now. But today we’re here to give our signees the opportunity to introduce investors to some other companies to consider buying instead…

Li Car

What it does: Li Auto is a Beijing-based automaker specializing in extended-range electric vehicles (EREV).

By James Fox. Li Car (NASDAQ:LI) rose in early 2024 but has since fallen sharply. The sell-off can be attributed to the failed launch of the first fully battery-powered electric vehicle (EV) and feeble deliveries in the first quarter.

The failure of the Li Mega (the first all-battery-powered electric vehicle) is a cause for concern, and the company has apparently shelved some of its electric vehicle plans.

However, with its focus on EREVs – essentially ultra-long-range hybrids – the company continues to deliver impressive volume growth of 38.4% year-to-date.

It also boasts the highest margins in China’s electric vehicle (NEV) market, outperforming much larger competitors such as Tesla AND BYD.

Interestingly for investors, its shares are much cheaper than Tesla and modestly cheaper than BYD. The company is trading at 16.8 times forward earnings, but forecasts suggest earnings will double over the next two years.

Li is also less likely to be impacted by tariffs and trade wars. The Beijing-based company appears to be set on entering the MENA market by starting exports.

James Fox owns shares in Li Auto.

Nvidia

What it does: Develops and manufactures graphics processors and chip systems for apply in data centers, gaming, artificial intelligence and robotics.

Author: Mark David Hartley. The recent move to building our own AI computer chips means Tesla will soon be able to compete Nvidia (NASDAQ: NVDA). While both companies have seen impressive growth over the last five years, I think Nvidia will overtake Tesla in the next five years. As Tesla’s car business faces competition, it appears to be expanding into other sectors. Failure to focus on one sector can cost you profits.

Nvidia remains the market leader in its niche and closest competitors, Broadcom AND AMDthey lag behind the company in terms of growth. Moreover, Nvidia is the supplier of choice for technology giants such as Meta AND Microsoft. Tesla may find a restricted market for its AI chips outside its own automated products.

Both are overvalued, but Nvidia’s price-to-earnings growth ratio (PEG) of 2.5 is lower than Tesla’s ratio of 3.6. It is also projected to grow at a rate of 22% per year compared to Tesla’s 16%.

Mark David Hartley owns shares of AMD.

Smith and nephew

What it does: Listed Smith & Nephewis FTSE100 and is a supplier of medical technologies and treatments.

By Royston Wild. As Tesla’s electric vehicle sales decline, CEO Elon Musk is increasing the apply of robotics to boost sales again. He hopes his Optimus humanoid robots will start rolling off production lines next year.

However, this does not encourage me to buy Tesla shares. It’s not just problems at the core car manufacturing division that seem to be growing. Musk’s dreams about robots have already suffered some setbacks (they were originally supposed to appear in Tesla factories by the end of 2024).

I think so Smith and nephew (LSE:SN.) may be a better stock to buy today. She is known primarily for her joint replacement systems and her work in wound treatment and sports medicine. However, it is also investing heavily in robotics, and its CORI surgical system (used for knee surgery) is a market leader.

CORI sales reached record highs in the second quarter after novel product lines and capabilities were added to the platform. This could be a significant source of profit growth as demand for medical robotics systems increases.

Analysts from Grand View Research believe that this technology segment will grow at a compound annual growth rate of 16.6% by 2030. Smith & Nephew could be a leading company to take advantage of this.

Royston Wild has no shares in Smith & Nephew or Tesla.