Should I buy Tesla stock or NIO stock for my ISA?

first_img Enter Your Email Address Rupert Hargreaves | Saturday, 20th February, 2021 | More on: TSLA NIO See all posts by Rupert Hargreaves Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Should I buy Tesla stock or NIO stock for my ISA? Stocks and Shares ISAs have some unique tax advantages. These advantages make them the perfect wrapper to hold high-growth investments such as Tesla (NASDAQ: TSLA) stock and NIO (NYSE: NIO). However, these investments are not going to be suitable for all investors. High growth stocks and shares can be incredibly risky.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…So, while they may have the potential to earn a large return for investors, there’s also the risk of large losses. As is the case with all stocks and shares, investors should only ever invest as much as they can afford to lose.ISA advantages An ISA wrapper can be one of the best ways to own investments. Operated like a regular dealing account, investors can deposit up to £20,000 a year into a Stocks and Shares ISA. There’s no tax to pay on income or capital gains earned on funds invested through one of these products. Investors can hold stocks and shares inside an ISA traded on what is known as a recognised stock exchange. This includes large American exchanges like the New York Stock Exchange and NASDAQ. NIO stock is traded on the NYSE, and Tesla stock is traded on the NASDAQ. However, there are some critical differences in investing in US equities compared to UK stocks. Currency movements can impact returns, and there may also be higher commission costs involved. This is why US equities may not be suitable for all investors. However, I’m comfortable with the level of risk and challenges involved. Tesla stock vs NIO stockWhen it comes to deciding which company is better, I believe Tesla has the advantage. NIO has potential, but the company is still in its early stages, unlike its peer. Tesla is already one of the world’s largest car manufacturers, and its electric vehicles are in operation and recognisable the world over. NIO has nowhere near the same level of visibility at present. That’s not to say that the company does not have a bright future. Electric vehicles are rapidly gaining market share, and the market potential is vast. The global electric vehicle market was valued at $162bn in 2019 and is projected to reach $803bn by 2027. I think these figures illustrate the market potential of these businesses. Of course, they are not the only electric car manufacturers, but they are two with the highest profiles. This should help them grab market share and attract consumers as the electric car market grows. That being said, these companies aren’t without risks. Both businesses are struggling to earn a profit. Tesla stock has surged off the back of the company’s rising output, but the firm also recently had to recall over 134,00 vehicles. I think that shows that the organisation still has teething problems. Meanwhile, there have been questions asked about NIO’s accounting practices and product quality. These challenges could pose a risk to the firm’s growth in future. Still, as a way to play the electric vehicle boom over the next decade, I would buy Tesla stock for my ISA and avoid NIO stock. However, I would keep a close eye on the latter business. As if its growth takes off, the firm may give Tesla a run for its money. center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Rupert Hargreaves does not own any share mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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