The electric vehicle (EV) market expanded rapidly over the past decade. Still, its growth is gradually cooling as governments roll back subsidies, tariffs disrupt cross-border shipments, and macro headwinds throttle consumer spending. The fragmentation of the EV market has also made it more challenging for smaller and newer companies to scale their businesses.
That said, the global EV market is still growing. From 2025 to 2030, it could expand at a 32.5% CAGR, according to Grand View Research, as automakers launch cheaper and more power-efficient EVs. If you want to capitalize on that trend, you should consider investing in these two unloved but undervalued EV stocks: Nio (NIO +4.41%) and Rivian (RIVN 0.85%).
Image source: Getty Images.
The differences between Nio and Rivian
Nio is a Chinese EV maker that differentiates itself with swappable batteries, which can be quickly swapped out across its network of more than 3,500 battery-swapping stations. Its namesake brand sells higher-end sedans and SUVs, while its smaller Onvo and Firefly sub-brands, which both launched in 2024, sell cheaper SUVs and compact cars, respectively. It's been expanding into Europe to reduce its dependence on the Chinese market.
Rivian is an American EV maker that sells three types of EVs: the R1T pickup truck, the R1S SUV, and custom electric delivery vans (EDVs) for Amazon (AMZN 0.45%) and other companies. It plans to launch its next commercial vehicle, the R2 SUV, this month.
Which EV maker is growing faster?
Nio's annual deliveries more than doubled in 2020 and 2021, but tougher macro and competitive headwinds subsequently throttled its growth. Nevertheless, its deliveries still grew 32% in 2022, 31% in 2023, 39% in 2024, and 47% to 326,028 vehicles in 2025.
That reacceleration was driven by its strong sales of ET-series sedans and Onvo SUVs in China, as well as its expansion into more European markets. Economies of scale are also kicking in and boosting its vehicle margins, and it expects to post its first adjusted profit in the fourth quarter of 2025 when it reports full-year earnings on March 10.
NYSE: NIO
Key Data Points
Rivian began producing its first vehicles in the fourth quarter of 2021. It delivered 20,332 vehicles in 2022 and more than doubled that figure to 50,122 in 2023. However, its deliveries rose only 3% to 51,579 vehicles in 2024, and then dropped 18% to 42,247 in 2025.
Rivian mainly blamed that slowdown on the cooling EV market and the elimination of federal tax credits, but its high prices could also be limiting its appeal. That's why it expects the R2 SUV, which will cost significantly less than its R1 vehicles, to stabilize its near-term growth.
NASDAQ: RIVN
Key Data Points
Why are both EV stocks still worth buying?
Nio has been growing much faster than Rivian, but Rivian's business could perk up again as it ramps up R2 production this year. Wall Street expects both companies to grow their revenues at high double-digit rates through 2028.
|
Revenue Growth (Estimated) |
2026 |
2027 |
|---|---|---|
|
Nio |
42% |
16% |
|
Rivian |
29% |
65% |
Data source: Marketscreener.
However, Rivian could experience a stronger acceleration through 2027 if the R2 boosts its market share against entrenched competitors such as Tesla (TSLA 0.07%). Nio's growth might cool off after it laps its initial launches of the Onvo and Firefly sub-brands, but it should still have plenty of room to expand in the growing Chinese and European markets.
Nio and Rivian are still deeply unprofitable, but they're both manufacturing more components in-house to reduce production costs. Rivian has also been selling its own clean energy credits to other automakers to stabilize its near-term margins.
Nio trades at less than one times this year's sales, while Rivian trades at less than three times this year's sales. Tesla (TSLA 0.07%) trades at 15 times this year's sales. Tesla trades at a higher valuation because it's much larger and more profitable than Nio and Rivian.
Yet that also means any positive news could drive Nio and Rivian a lot higher. Therefore, I believe these two EV stocks are still worth buying, even as the broader EV market cools.
