We recently compiled a list of the 12 Cheap EV Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Niu Technologies (NASDAQ:NIU) stands against the other cheap EV stocks.
Ownership of EVs is rising in the US. On March 16, CNBC reported that currently there are nearly 6 million battery EVs and plug-in hybrids on the roads. While this represents only a small portion of the overall vehicle market, it marks significant progress and automobile manufacturers remain invested in the transition away from gasoline. It is worth noting that in 2024 sales of traditional internal combustion engine cars fell below 80% for the first time in modern history.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 8 Fastest Growing AI Stocks To Buy Right Now.
The steady growth in EV sales suggests that consumer concerns about range anxiety are diminishing. However, this fear of running out of battery power remains a challenge for the EV market. The EV industry is working to address this by installing enough chargers in public places and expanding public charging infrastructure to drive wide-scale EV adoption. Despite many efforts, charging companies are finding it difficult to maintain growth because of political uncertainties.
The Trump administration has proposed stripping away federal incentives for EVs and instead prioritizing oil and gas policies. This creates a challenging environment for EV manufacturers and charging companies. Moreover, tariffs on essential steel and aluminum are further challenging automakers and their operations.
Despite current challenges, many believe that the EV sector is expected to grow significantly as it aligns with global sustainability goals and technological advancements. Additionally, innovations in battery technology and charging infrastructure continue to make EVs more affordable and feasible.
Methodology
To compile our list of the 12 cheap EV stocks to buy according to hedge funds, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. To find cheap EV stocks, we narrowed down our selection by looking for stocks trading at under 20 times their forward earnings as of March 17, 2025. Next, we focused on the top 12 cheap EV stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 12 cheap EV stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An avid cyclist riding a sleek electric motorcycle on a rugged city street.
Niu Technologies (NASDAQ:NIU)
Forward P/E: 6.42
Number of Hedge Fund Holders: 5
Niu Technologies (NASDAQ:NIU) is a Chinese electric scooter company that ranks among cheap EV stocks to invest in. The company designs, manufactures, and sells smart electric two-wheeler vehicles including electric motorcycles, mopeds, bicycles, as well as kick-scooters and e-bikes. The products are sold in more than 50 countries around the world. In 2024, Niu Technologies (NASDAQ:NIU) actively worked on expanding its product offerings and strengthening sales channels. The company refined its core N, M, and U series and also introduced the new F series. In China, Niu Technologies (NASDAQ:NIU) opened about 900 new stores in 2024, with approximately half of them in Tier 3 cities as the company aims to penetrate previously underrepresented markets.
A key area of focus for the company in 2024 was establishing direct distribution operations in key markets like Germany, Italy, France, and the US. Niu Technologies (NASDAQ:NIU) set up local entities, hired teams, and developed localized sales networks. These efforts helped expand the sales network to over 120 active dealers by the end of 2024. With these initiatives in place, Niu Technologies (NASDAQ:NIU) expects to reach 1.3 million to 1.6 million unit sales in 2025, representing a 40% to 70% increase year-over-year. The company is strategically expanding its market reach, both domestically and internationally.
Overall, NIU ranks 12th on our list of the cheap EV stocks to buy according to hedge funds. While we acknowledge the potential of NIU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NIU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
