Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.
We surveyed a group of over 1,000 readers on why they invested in popular EV stocks Tesla Inc (NASDAQ: TSLA), Nio Inc – ADR (NYSE: NIO), Li Auto Inc. (NASDAQ: LI) and Xpeng Inc – ADR (NYSE: XPEV).
To get a sense of which EV stock respondents have or have had the most exposure to in their portfolios, respondents were given the opportunity to share their 2020 and 2021 trading history with each stock.
Over the past year, which EV stocks have you traded or invested in? Select all that apply.
|
EV stock |
% of respondents who have traded or invested in the stock |
|
Tesla |
64% |
|
Nio |
67% |
|
Li Auto |
23% |
|
XPeng |
24% |
Why Invest In EV Stocks?
Two main reasons were cited: a global move towards clean energy vehicle solutions driven by government policy, as well as vehicle availability.
Many respondents suggested the Biden administration’s embrace of clean energy will provide favorable business conditions for EVs of all makes and models in the coming years, providing strength to clean energy industries at large.
Next, given the Chinese EV makers have had less time for research and development along with the time necessary to ingratiate themselves in the global EV market share, respondents see Nio, Li and Xpeng with more room to run than the likes of Tesla.
Tesla was founded in 2003. Nio and Xpeng were founded in 2014, and Li in 2015.
See Also: How To Buy Tesla Stock and How To Buy Nio Stock
Going Global
It’s well known that Elon Musk’s Tesla has a presence in China, not to mention global growth ensuing and symbolized by Giga Berlin, so traders suggested this exposure Tesla has to markets outside the U.S. may already be priced into shares.
Nio, Li and Xpeng’s lineup of EVs are not currently available for purchase in the U.S., so it can be said the introduction of Chinese EV’s official entry into the U.S. market would be a milestone serving as a catalyst for shares to spike.
Many investors said they’re holding shares in anticipation of the expansion of the availability of Chinese EVs into both Europe and the U.S.
But when or if this introduction to the U.S. market by Chinese EV makers happens, a publically offered timetable hasn’t yet been set by any of the Tesla competitors.
Meanwhile, non-Tesla traders in our study were relatively irked by Tesla’s P/E which sits at 1,077/1 at the time of publication, believing shares of the stock could be in for consolidation in the near-term.
This survey was conducted by Benzinga in March 2021 and included the responses of a diverse population of adults 18 or older.
Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 1,000 adults.
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