5 EV Stocks to Buy as Tesla’s Market Share Declines

4. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 26

NIO Inc. (NYSE:NIO) is a manufacturer of smart electric vehicles in China. On July 1, NIO Inc. (NYSE:NIO) reported delivering 12,961 vehicles in June 2022, representing a robust increase of 60.3% year-over-year. Cumulative deliveries were 217,897 as of June 30, and Q2 deliveries jumped 14.4% year-over-year to 25,059, ahead of the guidance of 23,000 to 25,000 units.

HSBC analyst Yuqian Ding on June 30 raised the price target on NIO Inc. (NYSE:NIO) to $28 from $26 and reiterated a Buy rating on the shares, citing greater conviction in the fundamental outlook. The U.S. share price has rebounded 6% since Q1, driven by the continuous improvement from three new models in the second half and more models expected to release after 2022.

According to Insider Monkey’s data, NIO Inc. (NYSE:NIO) was part of 26 public hedge fund portfolios, compared to 30 funds in the earlier quarter. D E Shaw is one of the leading shareholders of the company, with 5.4 million shares worth about $115 million. 

Here is what Horos Asset Management has to say 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.”