Prediction: NIO Is a Better Buy Than Lucid for the Next Decade
The Chinese EV maker has a better shot at a comeback.
Overview
NIO (NYSE: NIO) and Lucid (NASDAQ: LCID) are both electric vehicle (EV) makers that initially soared after their public debuts but fizzled out over the following years.
Nio, a Chinese EV maker, went public at $6.26 per ADR in 2018. Its stock closed at a record high of $62.84 on Feb. 9, 2021, but now trades at less than $4. Lucid, based in the U.S., went public by merging with a special purpose acquisition company (SPAC) on July 26, 2021. Its stock opened at a reverse split-adjusted price of $252.40 and set a record post-merger high of $577.50 less than four months later. But today, Lucid's stock trades at about $4.
Details
Both stocks look like dangerous investments in this wobbly market. But if I had to pick one as a turnaround play for the next decade, I'd pick NIO over Lucid for five simple reasons.
Source
Originally published at www.fool.com.