Hedge Funds are Selling Tesla (TSLA) and Buying These 5 EV Stocks Instead

4. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders in Q2: 34 

Number of Hedge Fund Holders in Q1: 28   

NIO Inc. (NYSE:NIO) is a China-based company that makes and sells smart electric vehicles. It is placed fourth on our list of 10 EV stocks hedge funds are buying instead of Tesla.

On August 12, investment advisory Bank of America maintained a Buy rating on NIO Inc. (NYSE:NIO) stock with a price target of $62, raising the 2022 volume sales forecast for the firm and appreciating the “solid” third quarter guidance numbers.

At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $2 billion in NIO Inc. (NYSE:NIO), up from 28 in the preceding quarter worth $1.3 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.”