10 Best Car Stocks to Buy in 2026

7. NIO Inc. (NYSE:NIO)

NIO Inc. (NYSE:NIO) is one of the best car stocks to buy in 2026. On March 11, Nomura upgraded its rating on NIO Inc. (NYSE:NIO) from Neutral to Buy with a price target of $6.6, which is lower than its earlier target of $8.4 for the stock.

This update comes as Nomura sees improving financial performance and steady growth in vehicle deliveries, which suggests a stronger business cycle for NIO Inc. (NYSE:NIO). The research firm noted that the company’s operations have improved over the past two quarters, supported by an increase in deliveries and better cost control, helping its profitability.

While Nomura expects NIO Inc. (NYSE:NIO) to enter a healthier growth phase, it has cut its shipment forecasts for 2026 and 2027 due to a more challenging market environment. The research firm still expects vehicle deliveries to grow at a compound annual rate of about 25% between 2025 and 2028. Revenue is also expected to increase by around 21% during the same period.

Nomura raised its gross margin estimates for 2026 and 2027 and improved its operating margin forecasts by more than 3 percentage points for both years. The firm now expects NIO Inc. (NYSE:NIO) to reach non-GAAP operating profit breakeven in 2026.

The research firm also believes upcoming product launches could be a catalyst as NIO Inc. (NYSE:NIO) plans to launch three new mid- to large-size SUVs, including two models expected in the second quarter of 2026. Nomura said this could support order growth and profit margins if the company can continue to manage costs effectively.

NIO Inc. (NYSE:NIO) is a leading company in the global electric vehicle market. It designs, develops, manufactures, and sells smart electric vehicles. The company offers premium smart EVs under the NIO brand, family-oriented smart EVs through the ONVO brand, and small smart high-end electric cars with the FIREFLY brand.