Better Buy: Lucid and Nio?

$Lucid Group Inc(LCID)$ may be a newcomer on the EV scene, but $NIO Inc.(NIO)$ has already proven it can manufacture successfully at scale.

The Chinese EV maker had cumulatively delivered more than 167,000 of its SUV models as of the end of 2021. And 2021 shipments were more than double what the company achieved in 2020. This year will mark a turning point in Nio's evolution. It plans to begin delivering its first electric luxury sedan, the ET7, by the end of the first quarter.

That will be followed by the midsize ET5 sedan later this year. Nio, along with its state-owned manufacturing partner, is also in the midst of doubling its manufacturing capacity to satisfy strong demand.

Lucid only began shipping its initial product late last year and is taking a different approach. It is starting with high-end luxury sedans, with plans to begin producing an SUV late in 2023. The Lucid Air sedan was namedMotorTrend's 2022 Car of the Year and offers a market-leading 520-mile range on a single battery charge. But Lucid isn't alone in touting its advanced technology.

Nio offers a battery-as-a-service option that allows customers to save on the initial cost of the vehicle and utilize Nio's battery swap stations to quickly replace depleted batteries. The company recently opened its first battery swap station in Norway, where it started delivering vehicles last year. The station is the first in Europe for Nio as the company moves to expand outside of China.

Lucid is also planning on geographic expansion, saying it expects to enter Europe and the Middle East in 2022, and China in 2023.

While there are plenty of risks for both Lucid and Nio, the market is tangible and the products are in demand. An investment in these two EV makers brings some diversity to a speculative bet. But it comes with real market demand that is readily apparent.

While it can be a good idea to take advantage of bargains when the market offers them, it's never a good idea tojump in and out of what's working or not workingin the short term. By sticking to your convictions and owning assets you believe will compound over time, you stand a better chance to reduce randomness and safeguard your financial health.