Forget Tesla: 5 Cheap EV Stocks to Buy Now

2. NIO Inc. (NYSE: NIO)

Number of Hedge Fund Holders: 28  

Price as of August 13, 2021: $42.47   

NIO Inc. (NYSE: NIO) is a Chinese firm that makes and sells electric vehicles. It is placed second on our list of 10 cheap EV stocks to buy now. In earnings results for the second quarter, posted on August 11, the firm reported earnings per share of -$0.03, beating market predictions by $0.08. The revenue over the period was $1.3 billion, up 127% compared to the revenue over the same period last year and beating market estimates by $20 million. The firm also boosted delivery guidance for the third quarter to up to 25,000 EVs from up to 22,000 EVs. 

On July 9, investment advisory HSBC upgraded NIO Inc. (NYSE: NIO) stock to Buy from Hold and raised the price target up to $69 from $54. Yuqian Ding, an analyst at the firm, issued the ratings update. 

At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in NIO Inc. (NYSE: NIO), down from 34 in the preceding quarter worth $2.6 billion.

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.”