Data released by eToro showed that electric vehicle (EV) manufacturer Tesla has become the most held stock by Australian global investors on the platform, leapfrogging rival electric vehicle (EV) company Nio.
The popularity in EV shares remain despite seeing volatility in the last quarter.
Tesla has fallen by 6.9 per cent, which investors saw as a buying opportunity adding to their portfolios, while Nio fell 0.5 per cent but saw a reduction in long-term holdings by Australian investors.
According to eToro’s market analyst, Josh Gilbert, Aussies are seeing the long-term potential of electric vehicles as the world sets its sights on lowering emissions.
“Australian investors are adapting to a long-term buy-and-hold strategy with both these assets, anticipating that the EV space will dominate the automotive industry for many years to come,” he said.
“Tesla has slightly more skin in the game than Nio, and that’s why Australian investors are opting for Tesla shares right now.”
Mr Gilbert opined that 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, into value stocks due to rising inflation fears.
However, while professionals are rotating out of these technological based stocks, Australian retail investors are maintaining a longer-term view, with Tesla and Nio being followed by Apple, Amazon, GameStop Corp, Palantir Technologies Inc, Alibaba, Coinbase Global Inc, BioNano Genomics Inc and Microsoft rounding out the top 10.
“Inflation is the hot topic at the moment, with much debate about how it will influence behaviour in the coming weeks and months,” said eToro’s global market strategist Ben Laidler.
“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.”
Elsewhere, GameStop Corp was the fifth most held stock in Q2, adding weight to it being more than just a fad stock among investors.
This was followed by fellow meme stock AMC Entertainment, which also remains in the top 10 stocks owned by Australian foreign investors.
Earlier this month, investors were allowed to vote through the platform on GameStocks AGM, with 63 per cent electing to do so, highlighting this community’s dedication to a brand they love and one which retail investors have helped to revitalise this year.
The video game retailer last week sold 5 million additional shares, raising an extra $1.1 billion to fund its growth plans.
