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EV Stock Faceoff: Is NIO's Mass Appeal Outshining LCID's Luxury Lane?
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Key Takeaways
NIO sold 72,056 vehicles in Q2'25, with ONVO and Firefly driving growth despite a dip in core brand sales.
LCID produced 6,075 vehicles in the first half of 2025 - barely a third of its 20,000-unit full-year target.
NIO's vehicle margin rose to 10.2% in Q1'25, thanks to cost cuts and new models targeting higher profits.
China-based NIO Inc. (NIO - Free Report) and California-based Lucid Motors (LCID - Free Report) are chasing the electric vehicle (EV) opportunity with different approaches. While NIO is expanding into the mass market with a sub-brand targeting budget-conscious buyers, Lucid is focusing on its premium roots, betting on luxury and performance to stand out.
Both stocks have had their ups and downs, and both promise big things—but which strategy looks more investable today? In this faceoff, we’ll break down where each company stands, how their business models stack up, and what investors should keep in mind as the EV market continues to evolve.
LCID Narrative: Luxury Ambitions, But Questions Loom Large
Lucid Motors is chasing its luxury EV dream—but investors may need more than slick cars and bold promises to stay convinced. In the second quarter of 2025, the company produced 3,863 vehicles and delivered 3,309. That’s a year-over-year improvement, driven partly by the Gravity SUV entering production late last year. But the numbers still missed Wall Street estimates. Even more concerning, Lucid has produced 6,075 vehicles in the first half of 2025 — barely a third of its 20,000-unit full-year target. While production may eventually catch up, the real issue appears to be demand.
Lucid operates at the high end of the EV market, with base prices above $70K for the Air sedan and just under $80K for the Gravity SUV. But with more affordable EVs flooding the market, the question is how many buyers are willing to pay this premium—especially for a brand still trying to build trust and scale.
Having said that, recent developments bode well for the stock’s long-term story. Just yesterday, Lucid announced that its vehicles will become compatible with Tesla’s Supercharger network on July 31, giving Lucid owners access to more than 23,500 chargers. This move improves convenience and could boost Air sales in particular. It also recently struck a major deal with Uber to supply over 20,000 vehicles equipped with Nuro’s autonomous tech. Uber has also invested $300 million into Lucid, providing both a cash cushion and a potential sales flywheel as its cars join Uber’s global EV fleet. Lucid is also rolling out over-the-air software updates to improve its tech, with new driver-assist features arriving July 30.
Saudi Arabia remains Lucid’s lifeline. The government owns around 60% of the company, has agreed to buy up to 100,000 vehicles over the next decade, and is backing a factory in the kingdom. Still, this heavy reliance on Saudi Arabia raises concerns—not just about Lucid’s long-term independence, but also the risk of further dilution as the company leans on external funding to stay afloat.
Lucid ended the first quarter of 2025 with $5.76 billion in liquidity—enough runway into late 2026— but its annual cash burn sits near $2 billion. Risk of shareholder dilution remains high, and gross profit margins are still deep in the red. Software updates and autonomous ambitions add some tech flair—but can Lucid scale enough to matter?
If Lucid could license or sell its tech stack to a legacy automaker, much like Rivian did with Volkswagen, it could significantly improve Lucid’s prospects. But for now, Lucid’s road ahead is not so smooth. It needs to boost demand, control costs and leverage its partnerships fast.
NIO Narrative: Broader Reach But Big Goals to Hit
While Lucid is focused on the high-end, NIO is building out an ecosystem that spans the EV spectrum. Its current lineup already includes sedans, SUVs and coupes like ES6, EC6, ET5 and ET9. But the bigger story is NIO’s multi-brand strategy. With the mainstream mass market ONVO brand and the premium compact Firefly label now active, NIO is moving beyond luxury and pushing for scale.
ONVO’s first model, L60, was launched in 2024. A second vehicle, L90, will hit the Chinese market on Aug. 1, with pricing starting at just $27,000 under the battery-as-a-service model. Meanwhile, Firefly introduced its first EV this April. This diversification gives NIO far broader market exposure than Lucid—and that’s key in a price-sensitive, competitive environment like China, where government EV support remains strong.
NIO delivered 72,056 vehicles in second-quarter 2025 — a 25.6% jump year over year. While that included healthy contributions from ONVO (17,081 units) and Firefly (7,843), sales of NIO’s core brand fell 18% from the prior year. For the first half of 2025, total deliveries reached 114,150 vehicles, up 30% from the year-ago period. Still, with a full-year target to double 2024’s total (221,970), the growth pace needs to accelerate significantly.
On the brighter side, margins are finally heading in the right direction. Vehicle margin rose to 10.2% in the first quarter of 2025 from 9.2% a year earlier, driven by lower material costs and a more efficient supply chain. New models like the ES6 and EC6 are expected to deliver margins near or above 20%, helping the company edge closer to profitability. The company also expects its losses to narrow gradually in 2025 amid sales growth and cost savings.
NIO battery swap technology gives it an edge. Its battery swap network now spans 3,400+ stations globally, a major differentiator in a crowded EV market. Meanwhile, the company is making strides in autonomous driving with its in-house NIO World Model, which is already live on select vehicles.
All in all, NIO’s strategy is broad and innovation-driven, with improving margins and expanding reach—but execution will be key to turning potential into long-term success.
Price Performance & Valuation
Year to date, shares of NIO have risen 15%, outperforming LCID’s gain.
Image Source: Zacks Investment Research
Valuation-wise, NIO trades at a much lower forward price-to-sales ratio compared to Lucid. Also, NIO’s P/S ratio is currently lower than its 3-year median. LCID looks quite pricey, considering its current challenges.
Image Source: Zacks Investment Research
How Do EPS Estimates Compare for LCID & NIO?
The Zacks Consensus Estimate for LCID’s 2025 and 2026 bottom line suggests year-over-year growth of 26.4% and 30%, respectively. See how estimates for Lucid have been revised in the past 90 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NIO’s 2025 and 2026 bottom line suggests year-over-year growth of 31% and 59%, respectively. See how estimates for NIO have been revised in the past 90 days.
Image Source: Zacks Investment Research
Bottom Line
Both NIO and Lucid are making bold moves in the EV space, but NIO’s broader market reach, improving margins and multi-brand strategy position it better now. While NIO’s 2025 delivery targets seem a little far-fetched at this moment, the company’s progress in cost control, battery-swap innovation and growing exposure to the mass market tilt the balance in its favor.
Lucid, despite some promising partnerships and strong tech, continues to struggle with demand, heavy losses and dilution concerns. Given the current fundamentals and outlook, NIO appears a better choice now. NIO currently carries a Zacks Rank #3 (Hold). Meanwhile, Lucid, with a Zacks Rank #4 (Sell), looks like a riskier option that investors may want to avoid for now.
Image: Bigstock
EV Stock Faceoff: Is NIO's Mass Appeal Outshining LCID's Luxury Lane?
Key Takeaways
China-based NIO Inc. (NIO - Free Report) and California-based Lucid Motors (LCID - Free Report) are chasing the electric vehicle (EV) opportunity with different approaches. While NIO is expanding into the mass market with a sub-brand targeting budget-conscious buyers, Lucid is focusing on its premium roots, betting on luxury and performance to stand out.
Both stocks have had their ups and downs, and both promise big things—but which strategy looks more investable today? In this faceoff, we’ll break down where each company stands, how their business models stack up, and what investors should keep in mind as the EV market continues to evolve.
LCID Narrative: Luxury Ambitions, But Questions Loom Large
Lucid Motors is chasing its luxury EV dream—but investors may need more than slick cars and bold promises to stay convinced. In the second quarter of 2025, the company produced 3,863 vehicles and delivered 3,309. That’s a year-over-year improvement, driven partly by the Gravity SUV entering production late last year. But the numbers still missed Wall Street estimates. Even more concerning, Lucid has produced 6,075 vehicles in the first half of 2025 — barely a third of its 20,000-unit full-year target. While production may eventually catch up, the real issue appears to be demand.
Lucid operates at the high end of the EV market, with base prices above $70K for the Air sedan and just under $80K for the Gravity SUV. But with more affordable EVs flooding the market, the question is how many buyers are willing to pay this premium—especially for a brand still trying to build trust and scale.
Having said that, recent developments bode well for the stock’s long-term story. Just yesterday, Lucid announced that its vehicles will become compatible with Tesla’s Supercharger network on July 31, giving Lucid owners access to more than 23,500 chargers. This move improves convenience and could boost Air sales in particular. It also recently struck a major deal with Uber to supply over 20,000 vehicles equipped with Nuro’s autonomous tech. Uber has also invested $300 million into Lucid, providing both a cash cushion and a potential sales flywheel as its cars join Uber’s global EV fleet. Lucid is also rolling out over-the-air software updates to improve its tech, with new driver-assist features arriving July 30.
Saudi Arabia remains Lucid’s lifeline. The government owns around 60% of the company, has agreed to buy up to 100,000 vehicles over the next decade, and is backing a factory in the kingdom. Still, this heavy reliance on Saudi Arabia raises concerns—not just about Lucid’s long-term independence, but also the risk of further dilution as the company leans on external funding to stay afloat.
Lucid ended the first quarter of 2025 with $5.76 billion in liquidity—enough runway into late 2026— but its annual cash burn sits near $2 billion. Risk of shareholder dilution remains high, and gross profit margins are still deep in the red. Software updates and autonomous ambitions add some tech flair—but can Lucid scale enough to matter?
If Lucid could license or sell its tech stack to a legacy automaker, much like Rivian did with Volkswagen, it could significantly improve Lucid’s prospects. But for now, Lucid’s road ahead is not so smooth. It needs to boost demand, control costs and leverage its partnerships fast.
NIO Narrative: Broader Reach But Big Goals to Hit
While Lucid is focused on the high-end, NIO is building out an ecosystem that spans the EV spectrum. Its current lineup already includes sedans, SUVs and coupes like ES6, EC6, ET5 and ET9. But the bigger story is NIO’s multi-brand strategy. With the mainstream mass market ONVO brand and the premium compact Firefly label now active, NIO is moving beyond luxury and pushing for scale.
ONVO’s first model, L60, was launched in 2024. A second vehicle, L90, will hit the Chinese market on Aug. 1, with pricing starting at just $27,000 under the battery-as-a-service model. Meanwhile, Firefly introduced its first EV this April. This diversification gives NIO far broader market exposure than Lucid—and that’s key in a price-sensitive, competitive environment like China, where government EV support remains strong.
NIO delivered 72,056 vehicles in second-quarter 2025 — a 25.6% jump year over year. While that included healthy contributions from ONVO (17,081 units) and Firefly (7,843), sales of NIO’s core brand fell 18% from the prior year. For the first half of 2025, total deliveries reached 114,150 vehicles, up 30% from the year-ago period. Still, with a full-year target to double 2024’s total (221,970), the growth pace needs to accelerate significantly.
On the brighter side, margins are finally heading in the right direction. Vehicle margin rose to 10.2% in the first quarter of 2025 from 9.2% a year earlier, driven by lower material costs and a more efficient supply chain. New models like the ES6 and EC6 are expected to deliver margins near or above 20%, helping the company edge closer to profitability. The company also expects its losses to narrow gradually in 2025 amid sales growth and cost savings.
NIO battery swap technology gives it an edge. Its battery swap network now spans 3,400+ stations globally, a major differentiator in a crowded EV market. Meanwhile, the company is making strides in autonomous driving with its in-house NIO World Model, which is already live on select vehicles.
All in all, NIO’s strategy is broad and innovation-driven, with improving margins and expanding reach—but execution will be key to turning potential into long-term success.
Price Performance & Valuation
Year to date, shares of NIO have risen 15%, outperforming LCID’s gain.
Valuation-wise, NIO trades at a much lower forward price-to-sales ratio compared to Lucid. Also, NIO’s P/S ratio is currently lower than its 3-year median. LCID looks quite pricey, considering its current challenges.
How Do EPS Estimates Compare for LCID & NIO?
The Zacks Consensus Estimate for LCID’s 2025 and 2026 bottom line suggests year-over-year growth of 26.4% and 30%, respectively. See how estimates for Lucid have been revised in the past 90 days.
The Zacks Consensus Estimate for NIO’s 2025 and 2026 bottom line suggests year-over-year growth of 31% and 59%, respectively. See how estimates for NIO have been revised in the past 90 days.
Bottom Line
Both NIO and Lucid are making bold moves in the EV space, but NIO’s broader market reach, improving margins and multi-brand strategy position it better now. While NIO’s 2025 delivery targets seem a little far-fetched at this moment, the company’s progress in cost control, battery-swap innovation and growing exposure to the mass market tilt the balance in its favor.
Lucid, despite some promising partnerships and strong tech, continues to struggle with demand, heavy losses and dilution concerns. Given the current fundamentals and outlook, NIO appears a better choice now. NIO currently carries a Zacks Rank #3 (Hold). Meanwhile, Lucid, with a Zacks Rank #4 (Sell), looks like a riskier option that investors may want to avoid for now.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.