NIO (NYSE: NIO) is currently a force to be reckoned with, particularly as its popularity has surged over the last number of years, with many now dubbing the EV maker as the 'Tesla of China'. But as more and more consumers are opting to buy sustainable electric cars, the EV market is exploding in both growth and players. So, here are the top 3 competitors to NIO right now.

1. Lucid Motors

Lucid Motors began trading publically in July of 2021 following a SPAC merger with Churchill Capital IV. It now trades on the NASDAQ under the ticker symbol LCID. It was founded in 2007 as Aviera, a company that built EV batteries and powertrains for vehicle manufacturers. In 2016 it rebranded, becoming Lucid Motors, and announced its plans to become a fully-fledged car manufacturer itself. Lucid Motors could be a competitor to NIO as an alternative to Tesla, making it very difficult for NIO to expand from China to the U.S.

With a market cap of over $25 billion, Lucid has a relatively solid future outlook. Its premium Lucid Air car had amassed over 30,000 reservations as of May this year, reflecting potential sales of almost $3 billion. The car itself has an exceptionally long range, the quickest charge, and can go from 0-60 in 2.5 seconds.

For the future, the company plans to sell energy storage solutions using its expertise in battery tech to expand in this direction. On the car front, it should start producing more affordable cars as its brand equity and in-house technology grow. Indeed, one very optimistic prediction is that the company will reach a trillion-dollar valuation by 2040. 

2. Tesla

Tesla (NASDAQ: TSLA) is the top dog when it comes to the EV world. Although it has its fair share of critics, the company always seems to exceed expectations. In its Q2 2022 results, the EV giant reported revenue of $16.93 billion and adjusted earnings of $2.27 per share.

For Q3, although its earnings are not yet released, the company has announced that it produced and delivered over 343,000 vehicles, 35% more than the previous quarter and up 42% YoY.

It has done all this with several setbacks in the last year, from the global semiconductor shortage to Elon Musk's distracting antics around his proposed purchase of Twitter.

Despite this, Tesla has smashed all expectations over the past few years, and as such, its stock has soared. It seems like this will continue to be NIO's biggest competition in China and across the world if NIO decides to expand further on a global scale.

3. Xpeng

Xiaopeng Motors (NYSE: XPEV) is another EV maker based in China. It serves as a competitor to both Tesla and NIO. For NIO in particular, it is currently operating in the same two countries, China and Norway. For both of these companies, this is a great gateway into the European Market. Xpeng went public in the U.S. in August 2020 and went public in Hong Kong in July 2021.

The company has produced mutiple electric vehicles since 2018, including the G3 SUV and the P7 Sedan, both of which are strikingly similar to Tesla's Model Y and Model 3 Sedan respectively. The company is now also producing a new sedan, the P5, which undercuts Tesla's price with a starting price of $24,700 and with the use of Xpeng's advanced self-driving tech.

In the past this southern Chinese EV-maker has had some business in the U.S., operating a subsidiary and holding a permit in California to carry our self-driving tests on its cars. With technology like this, the company should be able to keep up with the likes of Tesla and NIO who are major automotive players. As for expanding its EV business to the U.S., there is no plan in the pipeline just yet, but with its large funding rounds and public debut on the U.S. stock market which brought in $1.5 billion, it could be an encouraging prospect to branch into this country. It is, however, making inroads into the European market, having sold 486 EVs there in 2021.