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Nio (NYSE: NIO) and Lucid (NASDAQ: LCID) offer investors two very different ways to invest in the growth of the electric vehicle (EV) market. Nio is one of China’s leading manufacturers of electric sedans and SUVs, while Lucid is an American manufacturer of luxury sedans that is heavily backed by Saudi Arabian investors.
Nio went public through a traditional initial public offering in 2018. Lucid went public by merging with a special purpose acquisition company (SPAC) in 2021. Both stocks hit record highs during the buying frenzy in growth and meme stocks in early 2021, but both collapsed as rising interest rates drove investors toward safer investments. Nio and Lucid now both trade more than 80% below their all-time highs. Should investors buy either of these fallen EV stocks before a new bull market starts?
Image source: Nio.