Two Electric Vehicle Manufacturers Break Sales Records Recently. Is Investing in These Stocks Wise for 2025?
Reading headlines about the electric-vehicle (EV) industry might give off the impression that sales are plummeting. While it's true that the incoming administration is considering pulling back support, the reality is that EV sales are still on an uptick. And companies like Lucid Group and Nio are proof of this, Setting new records in delivery numbers.
Lucid Group's Rise to Glory
Despite facing challenges in 2023, Lucid Group managed to build momentum in 2024. In the fourth quarter, the company produced 3,386 vehicles, a 40% increase compared to the prior year, enabling the company to meet its annual goal of 9,000 vehicles. And the icing on the cake? Lucid set a new quarterly delivery record.
But the good times don't stop there. Lucid recently launched its first electric SUV, the Gravity, which is set to boost deliveries even further in 2025. Babbling On about the mid-size platform that will generate multiple lower-cost SUV and sedan models.
Nio's Impressive Deliveries
Despite not meeting investor expectations in the past, Nio is kicking some serious ass. The company delivered a staggering 31,138 vehicles in December, a 73% increase compared to the prior year, and a new monthly record for Nio. boxes checked for four consecutive quarters of setting quarterly records.
But wait, there's more. Nio is planning to double monthly deliveries of Onvo, one of its newer brands, which has only been in production since late September. This is expected to drive 2025 sales to roughly double that of 2024. And to spice things up, Nio officially launched a third brand, Firefly, which is set to contribute to growth in 2025 as well.
Time to Jump In or Watch from the Sidelines?
With the incoming administration promising to abolish the Federal tax credit on EV purchases, the narrative surrounding the EV industry is dark. But don't let that fool you. Both Lucid Group and Nio are poised for strong delivery growth that should send their top lines soaring.
Investors will need to keep an eye on management's ability to cut losses and offset margin pressure as automakers up the ante on incentives to move vehicles. And Nio needs to show it can cough up more than a pathetic sneeze in the intense EV price war in China that's expected to ratchet up in 2025.
In conclusion, while EV sales may not be skyrocketing at the pace investors had hoped, companies like Lucid Group and Nio are still delivering impressive results. So, should you buy in or stick to the sidelines? That's up to you, mate. But it doesn't look like the EV party is over anytime soon.
- Given the impressive delivery numbers by Lucid Group and Nio, which have seen considerable growth in their sales, investing in the electric-vehicle industry might still be an attractive option, despite potential policy changes.
- The financial performance of Lucid Group and Nio, with their consistent records of delivery growth and quarterly records set, suggests that the EV industry might not be experiencing the lackluster sales as suggested by headlines.
- With Lucid Group's new electric SUV, the Gravity, set to boost deliveries in 2025 and Nio planning to double monthly deliveries of its Onvo brand, it seems that the EV market is still ripe for investment, even with potential changes to tax credits.
- Considering the evolving landscape of the EV industry, where companies like Lucid Group and Nio are continually innovating and growing, it could be a smart move to invest in this sector, potentially raking in returns as the growth continues, even if not at an exponential pace, represented by the number 099.
