When Nio (NYSE:NIO), XPeng (NYSE:XPEV) and, Li Auto (NASDAQ:LI) briefly outperformed Tesla (NASDAQ:TSLA), the divergence did not last. In the last week, the former group of China-based EV stocks fell while Tesla fell by less.

Tesla is the best EV stock to own and is priced higher than the rest for good reasons. First, it has a completive edge. Having established a charging network, being the first global EV firm solidified its lead. VW, GM (NYSE:GM), Mercedes-Benz, Audi, and BMW are all pushing an EV strategy that is expensive and late.

Nio and XPeng cannot grow globally without raising billions more in cash. The stock sale would dilute shareholders. So, these firms would have to limit their market to China. But since Tesla is pinning its 2021 growth in the region, Nio and XPeng will need to explore new markets.

Tesla has unlimited funds available. Should cash flow dwindle, its fan base is strong that it may sell debt or shares. TSLA stock will not dip much. Short-sellers who had once bet against Tesla will not return.

With continued government support and a strong customer base, Tesla is the best EV stock pick for now. Should the stock dip further on panic selling, consider starting a position in this stock.