The electric vehicle (EV) market is as volatile as it is promising. Supply chain hiccups, interest rate pressures, and intense global competition have seen many EV stocks tumbling from their peaks. But for investors with a long-term perspective, August is offering up some pretty compelling opportunities to pick up some popular names at reasonable valuations.
Two in particular stand out right now: Nio (NIO -2.06%) and Rivian Automotive (RIVN -1.09%). Each faces its own headwinds but also carries a credible growth story and the potential to reward investors who can wait.

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Nio
Nio is China's premium EV daredevil. While most EV makers want to sell you a car, Nio wants to refuel it for you, too. Its battery-swap stations let drivers trade a drained pack for a full one in less time than it takes to grab a latte. In an industry that obsesses over range, that kind of convenience is tough to ignore.
Nio's current share price, less than $5, plants its market cap around $10 billion, valuing the company at about 1.06 times sales (for perspective, Tesla's figure is about 11.5). That's pretty cheap for a premium EV brand with real market share in China, the world's largest EV market. Its revenue has grown steadily, reaching about $9.4 billion over the past 12 months.
The problem is that growth hasn't yet translated into profitability. Nio lost roughly $3.3 billion last year, and gross margins remain stubbornly in the mid single digits. Meanwhile, the Chinese EV market is cutthroat, with rivals Tesla and BYD dominating volume.
That forces Nio into a tricky balance: trying to protect its brand as a premium choice while staying competitive on cost. So far that has meant operating losses and persistent cash burn, with over $13 billion in total liabilities and just $2 billion in equity.
Nio has expanded into Europe, which is exciting, but that comes with its own problem: Wherever Nio goes, it needs to build out its network of battery swapping stations. That intrinsic problem means that expansion into new markets, though potentially beneficial for top-line growth, also comes with operating expenses that will affect its profitability.
Still, last Thursday's 8% rally -- sparked by a blowout launch for its mass-market Onvo L90 SUV -- was a reminder of how quickly sentiment can turn. The first 10,000-unit batch reportedly sold out in just three hours. Management is aiming for adjusted profitability by late 2025 and plans to expand margins and build out its infrastructure moat in battery swaps and autonomous tech. For investors who believe in a future of EVs, today's sub-$5 price could be the low point before a long climb.
Rivian
Rivian makes electric trucks, SUVs, and delivery vans. Think rugged designs, off-road capability, and outdoorsy brand vibe. On top of that, it has a key partnership with Amazon, which is rolling out Rivian-built electric delivery vans (currently, about 25,000 of these bad boys are on the road). While originally, Amazon had exclusive rights to Rivian, both parties have since amended the contract, allowing Rivian to sell its vans to other companies.
The near term hasn't been super smooth. In the second quarter, deliveries dropped about 22% year over year to 10,661 vehicles.
While that number might seem concerning at first glance, the slowdown may be strategic: Rivian wants to bring its lower-priced R2 SUV to market in 2026, aiming to tap a much larger customer base. The timing also lines up with a fresh $1 billion investment from Volkswagen, which will help develop new EV platforms and software.
Financially, Rivian is improving but still in the red. It posted a modest gross profit in the first quarter, its second in a row, and revenue edged higher year over year to $1.24 billion.
Losses remain heavy, with negative free cash flow of about $526 million in the quarter. Still, its $4.7 billion cash pile and Volkswagen's funding should give it some breathing room while it works toward profitability.
At today's share price (about $12 to $13), Rivian's price-to-sales ratio (P/S) is about 2.6, far lower than Tesla's. At the same time, if it can nail the R2 launch, keep Amazon vans rolling, and tighten up its cost structure, sentiment could swing fast in the right direction. But there are still a lot of unknowns, and prospective investors should definitely expect a bumpy road before it starts to smooth out.
Why these EV stocks deserve a look
The EV market will test your patience, but that's part of the deal. Nio and Rivian each have something real going for them, whether its Nio's surge of demand or Rivian's steady Amazon van pipeline.
Both are still finding their financial footing, yet their current prices leave plenty of room for increases. If they can deliver on the next leg of growth, today's buyers could be glad they stayed buckled up.