10 Most Oversold EV Stocks to Buy According to Analysts

5. NIO Inc. (NYSE:NIO)

% Decline Over 1 Year: ~23%

Average Upside Potential: ~39.7%

Number of Hedge Fund Holders: 20

NIO Inc. (NYSE:NIO) is engaged in designing, developing, manufacturing, and selling smart electric vehicles in China. The company’s introduction of new brands such as ONVO and Firefly reflects a strategic move to capture a significant market share of the Chinese EV market. Through the expansion beyond premium positioning, NIO Inc. (NYSE:NIO) possesses the potential to grow into broader consumer segments and significantly enhance the addressable market. The company delivered 13,863 vehicles in January 2025, implying a 37.9% growth YoY.

The deliveries included 7,951 vehicles from its premium smart EV brand, NIO, and 5,912 vehicles from its family-oriented smart EV brand, ONVO. Notably, the official launch of the Firefly model is anticipated in April 2025. The multi-brand strategy can enable NIO Inc. (NYSE:NIO) to leverage its existing technological expertise and brand reputation throughout various price points and vehicle categories. By providing a wider range of products, NIO Inc. (NYSE:NIO) can attract a more diverse customer base, which can enhance its market penetration. Its experience in the premium segment can provide a competitive edge in providing high-quality vehicles at accessible price points. This can differentiate the company from its competitors.