5 Best EV Stocks to Buy Now

4. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 25

NIO Inc. (NYSE:NIO) is a Shanghai, China-based EV company operating in the Sedan and SUV category through its various offerings.

In August, Edison Yu at Deutsche Bank highlighted two factors that are expected to make NIO Inc. (NYSE:NIO) outperform its competitors in the EV startup segment. The first factor is the initial positive response that NIO Inc.’s (NYSE:NIO) mid-size Sedan ET5 received from customers. The company can address this strong demand for its top-selling premium model by leveraging its new production facilities.

The second factor is the stable demand for NIO Inc.’s (NYSE:NIO) present offerings which are more expensive than competitors. This reflects that the company has pricing power, and the customer is more focused on the brand than the features offered. The analyst gave NIO Inc. (NYSE:NIO) stock a Buy rating with a $39 price target in late August.

Here’s what Horos Asset Management said about NIO Inc. (NYSE:NIO) in its Q1 2022 investor letter:

“At the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information. While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. Other entities, such as the electric vehicle manufacturer Nio, have just started trading on this stock market.”