Nio Inc (NYSE: NIO) and Rivian Automotive Inc (NASDAQ: RIVN) have emerged as two of the most talked-about electric vehicle (EV) companies in recent years.
Both firms are pushing boundaries in design, technology, and sustainability, with Nio dominating the Chinese market and Rivian carving a niche in North America’s adventure-focused EV segment.
Rivian’s rugged R1T and R1S models appeal to outdoor enthusiasts, while Nio’s sleek sedans and SUVs cater to urban drivers seeking innovation and luxury.
That said, there are three big reasons why NIO stock stands out as a better investment at current levels than Rivian.
Nio stock offers superior sales growth and market penetration
Nio Inc. is committed to delivering nearly 450,000 vehicles this year – more than double its output in 2024. This aggressive growth reflects strong demand in China, the world’s largest EV market.
In contrast, Rivian’s production has stalled due to factory upgrades and supply chain hiccups, with analysts projecting only modest revenue growth of 8% this year.
The Chinese electric vehicle company’s deliveries reached over 72,000 units in Q2 alone, a 26% year-over-year increase, while Rivian’s quarterly output remains in shambles partly due to tariffs.
Moreover, the launch of the Onvo brand targeting mainstream families gives it a broader customer base and strong momentum, which may translate into an increase in NIO share price heading into 2026.
NIO shares give you exposure to recurring revenue
Nio has a one-up over Rivian Automotive also because of its battery-as-a-service (BaaS) offering.
Instead of traditional charging, the company based out of Shanghai, China, offers battery swapping at designated stations, allowing drivers to replace a depleted battery in minutes, which reduces upfront vehicle costs and creates a steady stream of subscription-based income.
Rivian, by contrast, relies on conventional charging infrastructure and lacks a comparable recurring revenue stream.
Analysts believe NIO’s battery service segment could reach breakeven by 2026, adding a layer of financial resilience and customer loyalty.
It’s essentially what differentiates Nio stock in a crowded electric vehicle landscape.
Nio Inc. is trading at a more attractive valuation than Rivian
Valuation is another compelling reason that makes Nio shares stand out as a better investment than Rivian stock in 2025.
At the time of writing, Nio is going for a price-to-sales (P/S) multiple of 1, only – well below RIVN’s more than 3.
Despite its larger revenue base – over $67 billion trailing twelve months versus Rivian’s $5 billion – Nio’s market cap is significantly lower, suggesting undervaluation.
Rivian’s enterprise value of $15.6 billion is more than double Nio’s $7.6 billion, despite the latter’s superior delivery volume and broader product lineup.
Therefore, investors looking for growth at a reasonable price may find NIO stock’s valuation far more attractive currently, especially if they believe the company will flawlessly execute its cost-cutting plans and hit profitability target by late 2025.
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