hey everyone in this video I'm going to answer which one is the better EV stock to buy and the three EV stocks I'm going to consider is Tesla Neo and rivian I'm going to compare these three EV stocks on Four Financial metrics and then answer which one is the best EV stock to buy right now starting with Revenue so let's compare these three companies on revenue and looking at this metric what you notice is that Tesla is in a tier of its own compared to these other two EV companies with revenue of 23.3 billion that has risen dramatically over the years and growing continues for Tesla Neo meanwhile has also grown Revenue nicely but it's on a smaller scale 1.56 billion in Revenue as of its most recent quarter uh fraction of the size of Tesla rivian explosive growth for rivian as it's just now ramping up production the company's planning on producing 50 000 cars in 2023 which would be double the rate that It produced last year and up until now it's pretty much selling everything it can produce although that remains to be seen if it can continue at that rate once it ramps up production the next metric I wanted to compare these three EV stocks on is the gross profit margin over the trailing 12 month actually the gross profit over the trailing 12 months and what you could see is Tesla again dominating with that excellent growth upwards demonstrating economies and scale generating nearly 20 billion in gross profit in the trailing 12 months meanwhile Neo generating just 567 million in gross profit in the trailing 12 months but at least Neo was positive while rivian generated negative 3 billion in gross profit over the trailing 12 months rivien has the capacity to produce up to 150 000 units and until it gets closer to producing and selling that many units it's going to have a hard time generating a gross profit because it has under utilization going on so it another year most likely before rivian generates a positive gross profit the next thing I wanted to look at is the operating profit margin and again Tesla with a huge Advantage here at a 15 operating profit margin negative 37 percent for Neo and negative 300 percent for rivian so Tesla really ahead of the game here while Neo and rivian playing catch up and finally I wanted to look at their prices their price to sales ratio forward one year and this is the valuation metric I chose to use because only Tesla has generated consistent profitability and consistent cash flow so I was limited in the valuation metrics I can use now judging by this metric Tesla is more than twice as expensive as rivian with the price to sales of 6.5 compared to a price to sales of three for rivian which is almost three times more expensive than Neo at a price to sales of 1.36 so if I had to choose today the EV stock that I would buy out of these three would be Tesla stock Tesla stock would be my choice among these three EV companies to buy right now all right but that's all I've got for this video thank you so much for watching I want to thank the Motley Fool For sponsoring this video visit full.com parkev for the 10 best stocks to buy now
