12 Best EV Stocks to Buy for The Long Term

8) NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 20

3-Year Sales Growth: 24.2%

NIO Inc. (NYSE:NIO) is engaged in designing, developing, manufacturing, and selling smart EVs in China. Jeff Chung from Citi maintained a “Buy” rating on the company’s stock, providing a price target of $8.90. The analyst’s rating stems from a variety of factors. The substantial rise in incentives for the company’s models, including the EC6, ES6, EC7, ES7, ET7, and ES8 series, showcases a strategic move to fuel sales and market competitiveness.

This indicates NIO Inc. (NYSE:NIO)’s commitment to enhancing customer value and fueling demand for their vehicles. Furthermore, the combination of higher incentives and the anticipated growth drivers make the company a strong investment proposition. The company’s introduction of new brands, such as ONVO and Firefly, demonstrates a strong move to capture a significant share of the broader Chinese EV market. By expanding over and above its premium positioning, NIO Inc. (NYSE:NIO) possesses the capability to tap into broader consumer segments and enhance the addressable market.

NIO Inc. (NYSE:NIO)’s multi-brand strategy can enable it to leverage its existing technological expertise and brand reputation throughout different price points and vehicle categories. By providing a wider range of products, it can attract a diverse customer base and enhance its overall market penetration. Its experience in the premium segment might provide a competitive edge in offering high-quality vehicles at accessible price points.