Retail investors remain bullish about electric vehicle makers despite their recent share price struggles, data from investment platform eToro has revealed.
Tesla and Nio remained the two most held stocks globally on eToro in the second quarter, with Tesla leapfrogging its Chinese rival to take the top spot.
The share prices of Tesla and Nio have fallen 6.9 percent and 0.5 percent respectively since the start of the year after 12 months of consistent and impressive gains. eToro noted a modest 4 percent increase in users holding Tesla this quarter compared to last, while those holding Nio stock declined by 8 percent, suggesting sentiment towards Tesla’s Chinese rival has dampened.
The electric vehicle manufacturers’ slump has coincided with a rotation in the wider market by investors out of growth sectors, such as technology and electric vehicles, due to fears about rising inflation. However, the fact that Tesla, Nio, Apple, Palantir and Microsoft – all in what are generally considered growth sectors – remain in the 10 most held stocks in Q2 suggests investors see long-term value in these companies.
eToro’s global markets strategist, Ben Laidler, said in a statement: “Inflation is the hot topic at the moment with much debate about how it will influence behaviour in the coming weeks and months. As countries have started exiting lockdown, it has led to an inevitable increase in prices, which has in turn caused some investors to pivot away from growth stocks and into companies with lower valuations.
“However, Tesla’s and Nio’s enduring popularity suggests investor confidence in the electrical vehicle sector as a long-term investment opportunity, despite fears over a prolonged inflationary period. The fact that Apple, Microsoft and Palantir also remain in the top 10 most held stocks on eToro also suggests that investors believe the recent bout of inflation may be temporary.
“eToro has long advocated the importance of investing in companies that you know and understand. It’s clear from our data that that’s what investors are doing.”
