5 Cheap Chinese Stocks to Buy Now

2. NIO Inc. (NYSE:NIO)

Stock Price as of May 31: $17.39

Hedge Fund Holders: 26

NIO Inc. (NYSE:NIO) is a Shanghai-based company that is involved in designing, developing, and manufacturing electric vehicles. The company is known for the breakthrough development of battery-exchange stations for its automobile as opposed to a traditional EV charging station.

Nuying Huang and Yusin Hu at DigiTimes reported on May 31 that the company is looking to establish a production facility in the US. NIO Inc. (NYSE:NIO) is a cheaper alternative to Austin, Texas-based Tesla, Inc. (NASDAQ:TSLA), which is the biggest automobile company in the world in terms of market capitalization. Vijay Rakesh at Mizuho has given the stock a target price of $60 in a research note issued to investors on May 23. The analyst anticipates NIO Inc. (NYSE:NIO) to recover to its pre-lockdown levels by June. Like Tesla, Nio also offers an autonomous driving platform, which is priced at a 40% to 50% discount from the autonomous driving platform offered by Tesla.

As of Q1 2022, NIO Inc. (NYSE:NIO) was held by 26 hedge funds at the end of Q1 2022.