Individual investors remain positive on EV manufacturers despite recent price swings for these stocks. This is revealed by the choices of global users of the eToro multi-asset investment platform. Tesla and Nio remain, in fact, the two most held stocks in the portfolio globally on eToro in the second quarter, with Tesla jumping ahead of its Chinese rival to take the top step of the podium. Tesla and Nio stock prices have fallen 6.9% and 0.5% year-to-date, respectively, after twelve months of consistent and impressive gains. eToro saw a 4% increase among its users who own Tesla securities in the last quarter compared to the previous one, while those who own Nio shares fell by 8%, which suggests that interest in the Chinese rival of Tesla has subsided.
The fall in electric vehicle manufacturers’ share prices coincided with an overall market rotation that sidelined “growth” sectors, such as technology and electric vehicles, due to fears of rising inflation. In any case, the fact that Tesla, Nio, Apple, Palantir and Microsoft – all that generally considered to be part of the growth sectors – remain among the ten most held stocks in the portfolio in the second quarter suggests that investors continue to see some long-term value in these companies.
Ben Laidler, eToro’s Global Markets Strategist, comments: «Inflation is the hot topic of the moment, with a very lively debate on how it will affect behavior in the coming weeks and months to come. Since the different countries began to exit the lockdown, there has been an inevitable rise in prices which in turn caused some investors to exit “growth” stocks to move towards those companies with lower valuations. The persistent popularity of Tesla and Nio, however, suggests that investors continue to place their trust in the electric vehicle industry as long-term opportunities, regardless of fears over a prolonged period of inflation. The fact that Apple, Microsoft and Palantir also remain in the top ten stocks held in the eToro portfolio suggests that investors believe that the recent inflationary flare may be temporary. eToro has long stressed the importance of investing in companies that know and understand each other. It is evident from our data that this is what the investors are actually doing ».