Electric Vehicle Stocks Showing Momentum: Are Nio and Lucid Worth Buying in 2026?

The electric vehicle sector has faced significant headwinds recently. U.S. policy shifts—including reduced federal EV tax credits, new tariffs on imported vehicles and parts, and weakened emissions standards—forced many automakers to scale back investment plans. Yet despite these challenges, two companies operating in this space, Nio (NYSE: NIO) and Lucid Motors (NASDAQ: LCID), have demonstrated remarkable delivery expansion and production acceleration heading into 2026. The question for investors is whether these positive operational trends translate into sound investment opportunities.

Nio’s Accelerating Delivery Growth and Improving Margins

Chinese electric vehicle makers have leveraged government support, strategic joint ventures, and strong domestic adoption rates to advance their technology and software capabilities while maintaining competitive pricing advantages. Nio stands out as a particularly compelling case study within this landscape. The company achieved a new monthly delivery record in December, reaching 48,135 vehicles—a 54.6% year-over-year increase. Fourth-quarter deliveries were even more impressive at 124,807 units, reflecting a 71.7% annual gain.

What makes these numbers especially significant is the company’s margin trajectory. Beyond raw delivery volume, Nio’s vehicle margins and gross profit expanded materially during the third quarter, indicating that growth is translating into improved profitability. The company’s two newer brands, Onvo and Firefly, accounted for roughly one-third of December deliveries, leaving considerable upside as these brands expand their market presence.

Perhaps most notably, Nio has set an ambitious target: achieving breakeven operations in 2026. If realized, this milestone would represent a transformative moment not only for the company but for the entire electric vehicle industry. Net losses are narrowing, and gross profits are rising—a stark contrast to many peers still mired in unprofitable operations.

Lucid’s Production Acceleration Amid Financial Concerns

Lucid experienced its own operational milestone in the fourth quarter. After acknowledging earlier production delays with its Gravity SUV, the company successfully accelerated output, producing 8,412 vehicles in Q4—a 116% increase from the prior year. Deliveries reached 5,345 units, representing a 31% year-over-year gain. This marks eight consecutive quarters of delivery record-setting for the luxury EV maker.

However, operational progress masks deeper financial realities. While Lucid’s top-line deliveries and production are expanding, the company continues to burn substantial cash, and adjusted EBITDA losses are widening rather than narrowing. Additionally, the company faces execution challenges related to its Saudi Arabian market entry, complicated by the Public Investment Fund’s substantial 60% ownership stake. These factors create a more complex and uncertain financial picture compared to its Chinese competitor.

Comparing the Two Electric Vehicle Stocks: Investment Implications

When evaluating these two electric vehicle stocks purely on delivery momentum, both appear compelling as 2026 unfolds. However, the financial fundamentals reveal a divergence worth noting. Nio is moving toward profitability with improving margins and shrinking losses—a trajectory suggesting the company may be approaching a sustainable business model. Lucid, by contrast, continues to face deepening losses despite impressive production gains, raising questions about long-term capital requirements and financial viability.

For investors monitoring electric vehicle stocks, the recommendation differs by company. Lucid warrants observation from the sidelines as the company works through its financial challenges. Nio, with its improving unit economics and clear path to breakeven, may merit small, cautious positions for those bullish on the sector’s longer-term potential. The near-term momentum in electric vehicle stocks is undeniable, but sustainability matters more than headline-grabbing growth rates.