Comparing NIO Inc. (NIO) and Faraday Future Intelligent Electric Inc. (FFIE) - which electric vehicle (EV) stock is a better buy?.The electric vehicle (EV) market is expanding at a solid pace, with more than 10 million EVs on the world’s roads in 2020, a 43% increase compared to 2019. This growth should accelerate in the coming years amid growing demand for low emission vehicles. Moreover, governments support through subsidies and tax rebates should boost the EV industry as well. According to Allied Market Research, the global electric vehicle market is expected to reach $802.81 billion, growing at a CAGR of 22.6% between 2020 and 2027. So, both NIO and FFIE should be able to capitalize on this growth.
However, the EV industry came under pressure because of the semiconductors shortage. In addition, EV stocks have recently experienced a sell-off amid investors’ concerns regarding a new COVID-19 variant in South Africa. Which is why today we're going to take a look at NIO Inc. (NIO) and Faraday Future Intelligent Electric Inc. (FFIE) to determine which EV stock is better to buy on the dip.
Founded in 2014, NIO develops, manufactures, and sells EVs in China, targeting the luxury electric SUVs segment. The company also offers an innovative subscription-based model for its batteries. Headquartered in Gardena, California, FFIE also engages in the development and selling of EVs and EV-related products in the U.S. and across the globe.