2025 wasn't an easy year for investors within the electric vehicle (EV) industry. The U.S. government administration rolled back incentives such as the $7,500 federal EV tax credit, added tariffs to imported vehicles and automotive parts, and undermined emissions regulations. Many automakers pulled back on previous hefty EV investment plans, taking billions in special charges.
Lucid Motors (LCID 7.12%) and Nio (NIO +2.89%) took those speed bumps in stride and have serious momentum heading into 2026 -- but does it make them buys now?
A Chinese angle
Investors interested in scooping up shares of EV makers might start their discovery process with Chinese companies. That's because thanks to government subsidies, joint ventures, and a high rate of domestic EV adoption, Chinese EV makers are well advanced in technology and software, and can undercut almost all competitors on pricing.
If investors are looking at the Chinese EV industry, Nio should be at the top of the list of companies to begin researching. The Chinese EV maker has serious momentum after setting a new monthly record for deliveries in December, with a 54.6% gain to 48,135 vehicles, compared to the prior year. Delivery growth for the fourth quarter was even better, with a 71.7% year-over-year gain to 124,807 vehicles. The explosive delivery growth was noticeable when graphed.
Data source: Nio production and delivery press releases. Graphic source: Author.
The good news is that there's still room for growth. In fact, Nio's two newer brands, Onvo and Firefly, only generated roughly one-third of Nio's December deliveries, and as their market reach expands, expect Nio's deliveries to keep pushing higher. Perhaps even better news is that vehicle margins and gross profits took a significant jump higher during the third quarter, emphasizing that the company's growth is increasingly more profitable.
Triple-digit growth
Nio wasn't the only EV standout with momentum heading into 2026. Lucid had admitted to a slower ramp up of its newly launched Gravity SUV than desired, but it seems to have successfully accelerated production in Q4. In fact, Lucid produced 8,412 vehicles during Q4, which was a 116% increase compared to the prior year. It delivered 5,345 vehicles, which was a strong 31% increase from the prior year.
Image source: Lucid Motors.
If investors are keeping track, that makes eight consecutive quarters when Lucid has set a delivery record, with near-term upside as it continues accelerating production of the Gravity SUV after a series of supplier bottlenecks slowed its early progress.
NASDAQ: LCID
Key Data Points
Are they buys?
When it comes to delivery momentum, Nio and Lucid are both looking great as they drive through the early part of 2026, but that's where many comparisons should end for investors. Lucid's deliveries and top line are expanding. But the company continues to burn through cash, and its adjusted EBITDA losses are widening. It also has a distracted market entry into Saudi Arabia, thanks in part to the country's Public Investment Fund (PIF) owning a roughly 60% stake in the automaker.
On the flip side, Nio's net losses are narrowing, its vehicle margins are improving, and its gross profit is rising. In fact, Nio is targeting 2026 to be its first breakeven year, which would be a massive step not only for Nio but for the EV industry. Investors should watch Lucid's stock from the sidelines, and investments in Nio should be limited to small positions.
