Forget Rivian Automotive Inc (RIVN): 5 EV Stocks to Buy for Long-Term Gains

In this article, we discuss the 5 EV stocks to buy for long-term gains. If you want to read our detailed analysis of these stocks, go directly to Forget Rivian Automotive Inc (RIVN): 10 EV Stocks to Buy for Long-Term Gains. 

5. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 30  

NIO Inc. (NYSE:NIO) markets smart electric vehicles. Since the company is based in China, the stock has suffered, like other dual-listed Chinese firms in the US, over the past few months. However, analysts are exceedingly bullish on the future prospects of NIO Inc. (NYSE:NIO) despite these China-US tensions. On January 12, Macquarie analyst Erica Chen initiated coverage of NIO Inc. (NYSE:NIO) stock with an Outperform rating and a price target of $37. 

Despite the dramatic pullback in the share price of NIO Inc. (NYSE:NIO), there hasn’t been a corresponding hedge fund exodus from the stock, affirming the confidence that elite investors display in the company. At the end of the third quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $1 billion in NIO Inc. (NYSE:NIO). 

In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE:NIO) was one of them. Here is what the fund said:

“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”