Several Chinese electric vehicle (EV) stocks are surging, defying the broader downturn in U.S. equities, which are experiencing historic losses.
The rally in China’s EV sector is partly fueled by strong government support and rising sales, steadily chipping away at Tesla’s (NASDAQ: TSLA) market dominance.
Meanwhile, Tesla is struggling with its fundamentals, particularly sales, which are declining in key markets such as Europe.
Picks for you
In this line, Finbold has identified two Chinese EV stocks that present compelling buying opportunities.
XPeng (NYSE: XPEV)
XPeng (NYSE: XPEV) is among the success stories of 2025. The stock has witnessed massive growth as the company outlines its plans to expand beyond basic EV offerings.
At press time, XPEV was valued at $26.34, rising over 14% for the day. The stock is up 128% year-to-date.
Indeed, XPeng offers a compelling investment option, considering its plans to invest in other technologies. For instance, the firm plans to invest up to 100 billion yuan ($13.8 billion) in humanoid robots.
Xpeng envisions a potential 20-year commitment to the sector, with investments ranging from 50 billion to 100 billion yuan, building on its 2020 entry with the humanoid “Iron” to rival Tesla’s Bot.
This initiative already has government backing, considering China’s existing policy supporting robotics.
At the same time, XPeng is a buy, given its new focus on artificial intelligence (AI), a technology believed to be in its infancy. In this aspect, UBS has upgraded its rating to “Neutral” from “Sell,” citing XPeng’s growing AI potential, particularly after the DeepSeek impact, as investors increasingly value AI capabilities in companies.
Meanwhile, with Q4 earnings due on March 18, 2025, and a projected revenue of $2.12 billion, the firm shows potential for sustained growth while being attractively priced at its current valuation.
Nio (NYSE: NIO)
As Nio (NYSE: NIO) aims for sustainable operations, the stock is worth buying now, given its recent strong vehicle deliveries, improving margins, and optimism ahead of its fourth-quarter earnings report on March 21.
Nio reported record-breaking deliveries in December, reaching 31,000 vehicles, contributing to a 39% year-over-year increase in total 2024 deliveries. The trend has remained strong in early 2025, with deliveries rising over 50% in the first two months compared to the previous year.
Improving profitability is also noteworthy. Nio’s vehicle margins climbed from 9.2% in Q1 2024 to 13.1% in Q3, a key metric that analysts will closely watch in the upcoming earnings report.
Meanwhile, the company is expanding into the mass market with its Onvo brand, which has begun sales, and Firefly, a compact EV targeting urban drivers with a starting price of $20,500.
Adding to the bullish momentum, Shanghai authorities announced subsidies covering 40% of equipment costs for battery swap stations, a move that could potentially boost Nio’s leadership in this space. In fact, government backing is central to improving investor confidence.
With analysts expecting revenue of $2.7 billion and a net loss of $0.36 per share for Q4, the upcoming Nio earnings call will be a crucial test for the firm’s path to sustainable growth.
By press time, NIO was trading at $5.22, ending the last session up 17%. Year-to-date, the stock is also in the green, gaining 14%.
In summary, XPeng and Nio’s growth will depend on strong sales and revenue expansion, with AI, robotics, and battery swap tech providing key boosts. Meeting earnings expectations will also be crucial for their stock performance.
Featured image via Shutterstock
