NIO vs. Niu Technologies: Which Electric Vehicle Stock is a Better Buy?

NIO vs. Niu Technologies: Which Electric Vehicle Stock is a Better Buy?

Posted On November 23, 2020 2:30 pm

Electric vehicles are taking the automobile industry by storm. While new companies are emerging, China is the largest EV market due to government support. NIO Ltd. (NIO – Get Rating) and Niu Technologies (NIU – Get Rating) are two of the fastest-growing EV manufacturers and are gaining market share through their innovative products at affordable prices.

While NIO is known for its aggressive growth as it readily expands to high demand economies in North America and Europe, NIU’s electric motorcycles and bicycles cater to the middle-income population looking for compact vehicles at affordable prices. As the pandemic has resulted in a disdain toward public transportation, NIU’s sales are expected to skyrocket both in the domestic and international markets.

Both companies have generated significant returns over the past year. NIO gained 2547.5% over this period, while NIU returned 300.1%. In terms of past six-month performance as well, NIO is the clear winner with 1213% gains versus NIU’s 238.6% returns.

But which stock is a better buy now? Let’s find out.

Latest Developments

NIO recently raised $1.30 billion through an American depository share offering, which is expected to contribute to the research and development of electric car ecosystems and automated technologies as well as developing its global market presence. It also plans to buy back some of its shares from the Hefei investor group, which previously bailed out the company with a $1.40 billion cash infusion. The company is currently planning to expand to the European EV market.

NIO is the first company to launch a ‘battery as a service’ (BaaS) subscription model, allowing customers to purchase electric vehicles and battery packs separately. It is planning to launch its EVs in the European market by 2021. NIO aims to penetrate the most important global markets across the world by 2023 – 2024, according to CEO William Li.

NIU operates four series of e-scooters, two series of urban commuter electric motorcycles, and a performance bicycle series. The company launched a new…

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