We recently compiled a list of the 10 High Growth EV Stocks to Invest In. In this article, we are going to take a look at where NIO Inc. (NYSE:NIO) stands against the other best High Growth EV stocks.
Automobiles that run on electricity rather than gas are referred to as electric cars, or EVs. Electric car stocks consist of companies that primarily manufacture electric vehicles. The electric vehicle business also includes companies that provide parts for electric vehicles, including batteries or autonomous driving systems.
S&P Global Mobility estimates that around 7.36 million of the 16 million cars sold in 2024 were not made in the United States, showing that President Trump’s 25% tariffs on imported cars, which have been in effect since March 2024, affect about 46% of the country’s auto market. On May 3, tariffs on some auto components, including engines and transmissions, went into effect.
However, the administration unveiled a two-year relief plan in response to industry criticism. In the first and the second year, automakers that manufacture in the United States are allowed to deduct import tariffs on parts up to 3.75% and 2.5% of the suggested retail price of a car, respectively. Automobiles having at least 85% U.S., Canadian, or Mexican components are exempt; by 2025, the percentage will rise to 90%. The overlapping tariffs on commodities, steel, and aluminum from Mexico and Canada have been waived for businesses. Industry groups have issued warnings that the tariffs would increase market maintenance costs, lower sales, and boost car prices.
Recently, according to the Cox Automotive report, in Q1 2025, sales of electric vehicles in the United States rose 11.4% year over year to around 300,000 units, making up 7.5% of all new vehicle sales, up from 7% in Q1 2024. New model launches fueled growth, with multiple brands either diversifying their EV lineups or making their first steps into the market. One significant automaker sold over 30,000 EVs, almost doubling its volume from the previous year. In Q1, another company that had not been involved in the EV market before contributed over 14,000 units. However, not all players grew; some established models experienced significant decreases as product strategies changed.
However, the market for EVs is facing more challenges. A well-known EV brand had a 26% decline in sales from its 2023 peak of 173,000 units to 128,000 units in Q1, a 9% year-over-year decline, and a 3% decline in market share. Future growth is threatened by ongoing tariffs on vehicles and essential commodities like aluminum and battery supplies, as well as policy uncertainty.
Nonetheless, the research firm Rho Motion projected that China’s prolonged subsidies and the new EU emissions targets will propel global EV and plug-in hybrid sales to increase by more than 17% in 2025, reaching 20 million units. China is the market leader, with EV sales forecast to jump by 40% to 11 million by 2024, and Latin America and Asia-Pacific will continue to dominate. Sales in Europe are anticipated to surge by 15% from 3 million units in 2024, even though there could be fines of €10 billion for missing emissions targets. Despite the uncertainties surrounding policy, U.S. sales have been projected to rise by 16%.
Rho Motion Head of Research, Iola Hughes, stated:
“In the US market, a lot of uncertainty has obviously hit the market in the last year or so, and we are expecting reduced EV forecasts,” “However, the shift to electric vehicles is still very much happening and we will still see growth over the next decade.”
A fleet of eco-friendly electric cars, a symbol of the company’s commitment to sustainability.
Our Methodology
For this article, we sifted through the online rankings to form an initial list of the 20 EV stocks. From the resultant dataset, we chose 10 stocks with an average 5-year revenue growth of over 20%.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
NIO Inc. (NYSE:NIO)
Average 5-Year Revenue Growth: 53.06%
NIO Inc. (NYSE:NIO) is a prominent Chinese producer of electric vehicles, or EVs, that targets the high-end market. The suggested retail pricing for its current model portfolio, which has a driving range of 465-710 km, ranges from CNY 207,000 to CNY 598,000. In 2024, it also introduced a new mass-market brand to capitalize on strong demand while maintaining the firm’s premium reputation. The business sets itself apart with ongoing developments and technological achievements like autonomous driving and battery swapping. It is among the High Growth Stocks.
China’s strong client demand is helping the business. After reporting 221,970 vehicle deliveries in 2024, a 38.7% increase over 2023, NIO Inc. (NYSE:NIO) revealed considerable growth in the first quarter of 2025, with 42,094 vehicle deliveries, 40.1% more than the same period in 2024. Total car revenue grew as anticipated. In 2024, the company’s automotive revenue was approximately $7.98 billion, an 18.2% rise over the year before. Furthermore, it increased its gross profit margin from 5.5% in 2023 to 9.9% in 2024.
NIO Inc. (NYSE:NIO) produced more than 25,000 power chargers and deployed 3,245 power exchange stations globally in 2024. During the New Year’s holiday, a record 137,000 battery changes were completed in one day.
Overall, NIO ranks 5th on our list of the High Growth EV Stocks to Invest In. While we acknowledge the potential of NIO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NIO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.