In this article, we discuss the 5 hot EV stocks to buy now. If you want to read about some more hot EV stocks to buy now, go directly to 10 Hot EV Stocks To Buy Now.
5. Lucid Group, Inc. (NASDAQ: LCID)
Number of Hedge Fund Holders: 15
Avg Volume: 32.6M
YTD Perf: +71.16%
Lucid Group, Inc. (NASDAQ:LCID) a technology and automotive company, develops electric vehicle (EV) technologies. On January 27, Lucid Group stock price skyrocketed 43% after initially rising two-fold on rumors that Saudi Arabia Public Investment Fund (PIF) was planning to purchase the electric vehicle company.
R.F. Lafferty analyst Jaime Perez maintained a Buy rating on Lucid Group, Inc. (NASDAQ:LCID) stock and lowered the price target to $17 from $19, noting that the company’s two financing agreements and its asset-based loan of $1 billion should provide enough financial flexibility to commerce its expansion.
At the end of the third quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $99.5 million in Lucid Group, Inc. (NASDAQ:LCID), compared to 16 in the preceding quarter worth $173.7 million.
4. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 20
Avg Volume: 32.4M
YTD Perf: +7.04%
XPeng Inc. (NYSEL:XPEV) designs, develops, manufactures, and markets smart electric vehicles in the People’s Republic of China. On January 16, XPeng announced plans to open four delivery and service centers in H1 2023 in Norway, the Netherlands, Sweden, and Denmark. These locations are being established to facilitate the delivery of the company’s latest electric vehicles in key European markets.
On December 13, 2022, HSBC analyst Yuqian Ding maintained a Buy rating on XPeng Inc. (NYSE:XPEV) stock and lowered the price target to $15 from $34, highlighting that tough competitive environment in the mass market pricing range and short-term volume reduction is completely priced into the shares.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in XPeng Inc. (NYSEL:XPEV) with 6.3 million shares worth more than $75.5 million.
3. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 47
Avg Volume: 52.1M
YTD Perf: +16.17%
Ford Motor Company (NYSE:F) designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. On January 27, Ford revealed that it was recalling nearly 383,000 SUVs in the US due to a problem with the rear-view cameras. This issue can reduce rear visibility and increase the risk of a crash.
On January 25, JPMorgan analyst Ryan Brinkman maintained an Overweight rating on Ford Motor Company (NYSE:F) stock and lowered the price target to $15 from $16, noting that price reductions from Tesla are good for customers, bad for Tesla, bad for rival manufacturers, and possibly good for suppliers of parts.
At the end of the third quarter of 2022, 47 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Ford Motor Company (NYSE:F), compared to 46 in the preceding quarter worth $608.8 million.
In its Q3 2022 investor letter, Leaven Partners, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), have recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6% [2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”
2. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 26
Avg Volume: 55.8M
YTD Perf: +23.79%
NIO Inc. (NYSE:NIO) designs, develops, manufactures, and sells smart electric vehicles in China. On January 27, Scottish investment firm Baillie Gifford & Co increased its stake in NIO ADR by purchasing approximately 24 million shares, a 25% increase from its previous holdings of approximately 97 million shares.
On December 29, 2022, China Renaissance analyst Yiming Wang maintained a Hold rating on NIO Inc. (NYSE:NIO) stock and lowered the price target to $10.40 from $12.30, noting that the company’s fourth quarter deliveries are being delayed by ongoing COVID issues, leading to a reduction in its delivery guidance strategy.
At the end of the third quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $518.9 million in NIO Inc. (NYSE:NIO), compared to 25 in the preceding quarter worth $873.9 million.
In its Q1 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE:NIO) was one of them. Here is what the fund said:
“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.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 88
Avg Volume: 141.1M
YTD Perf: +40.62%
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. On January 30, 2023, Berenberg analyst Adrian Yanoshik upgraded Tesla, Inc. (NASDAQ:TSLA) stock to Buy from Hold with a price target of $200, down from $255, highlighting that the company’s price reductions are an investment in growth that is in line with its cost leadership strategy.
At the end of the third quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 73 in the preceding quarter worth $7.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:
“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic;
second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.
Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
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