11 Small Cap EV Stocks to Invest In

3. NIO Inc. (NYSE:NIO)

Market Capitalization: $9.32 Billion

Number of Hedge Fund Holders: 20

NIO Inc. (NYSE:NIO) is a leading electric vehicle manufacturer based in Shanghai, China. The company focuses on designing and producing smart electric vehicles, offering premium models under the NIO brand and family-oriented options through the ONVO brand. NIO Inc. (NYSE:NIO) ranks among the best EV stocks to invest in.

In the third quarter of 2024, NIO Inc. (NYSE:NIO) achieved a quarterly record with 61,855 vehicle deliveries, marking an 11.6% increase compared to the same period last year. The NIO brand alone accounted for 61,023 deliveries, maintaining its status as the top-selling brand in China’s battery electric vehicle (BEV) segment priced above RMB 300,000, with a market share of 48%. The ONVO brand also made its debut by delivering its first model, the L60, on September 28, targeting the mainstream family market.

NIO Inc.’s (NYSE:NIO) financial performance is improving as well. The vehicle margin rose to 13.1% in Q3 2024, up from 11% in Q3 2023, reflecting better component costs and operational efficiencies. This trend indicates that NIO Inc. (NYSE:NIO) is not only increasing its sales but also enhancing profitability.

Looking ahead, NIO’s flagship model, the ET9, is set to begin production in March 2025. This vehicle is expected to reinforce NIO’s premium image and attract more customers. With plans to introduce new models and a focus on profitability, NIO Inc. (NYSE:NIO) is positioning itself for sustained growth. On the other hand, the ONVO L60 has gained popularity among families due to its spacious design and low energy consumption. This aligns with NIO Inc.’s (NYSE:NIO) strategy to diversify its offerings and capture a broader market share. The company’s strong market presence and innovative approach make it a promising stock for investors looking to benefit from the growing EV market.