The spot in question comes from the list of favourite international shares held by Australian retail investors. A list put together from global user data by the global multi-asset investing platform eToro.
Apple, in fact, dropped from first place in the previous quarter to fourth spot in Q2 2021.
Coming in at number 2 for the quarter just gone by is Tesla’s fellow electric vehicle (EV) maker and Chinese rival Nio Inc. (NYSE: NIO). Nio moved up from ninth most favourite international share in the previous quarter.
Why Aussie investors are increasingly interested in Tesla
Australian investments in Tesla increased 4% compared to the prior quarter, while Aussie investments in Nio fell 8%.
According to Josh Gilbert, eToro’s Australian market analyst:
Tesla and Nio have both been the 2 most prominent stocks for Australian investors over the last six months. We can see that 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.
Tesla has slightly more skin in the game than Nio, and that’s why Australian investors are opting for Tesla shares right now.
What other international shares are attracting Australian investors?
Atop Tesla, Nio and Apple, the 7 other shares making the top-10 list in Q2 2021 are:
- GameStop Corp. (NYSE: GME) – moving to number 3 spot, from 259 the previous quarter
- Palantir Technologies Inc (NYSE: PLTR) – making the list for the first time at number 5
- Amazon.com, Inc. (NASDAQ: AMZN) – up to number 6 from number 4 in Q1
- BioNano Genomics Inc (NASDAQ: BNGO) – also not on the list in Q1, now at number 7
- Microsoft Corporation (NASDAQ: MSFT)
- AMC Entertainment Holdings Inc (NYSE: AMC), and
- Alibaba Group Holding Ltd (NYSE: BABA)
Investors shrugging off inflation fears
There’s been a lot of ink spilled in the financial media about the looming rise of inflation. This would see central banks raise interest rates and, with the end to easy money, could put a crimp in share market performance.
Commenting on investor’s inflation concerns, eToro’s Global Markets Strategist, Ben Laidler said:
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.
Investors are currently facing a lot of uncertainty but our data shows that they seem to be sticking to their long-term strategies. We may start to see more investors diversify their holdings if central banks such as the Federal Reserve, Bank of England and European Central Bank change their tune on inflation.
How has the Tesla share price moved this year?
Tesla tops the list of favourite international shares for Aussie investors in Q2 despite shares in the EV pioneer falling 7% this calendar year.
Still, Tesla’s shares have gained 147% over the past 12 months. And the past month’s price moves suggest a possible turnaround, with shares up 12% since 7 June.