(NYSE: NIO) and Rivian (NASDAQ: RIVN) both saw their shares skyrocket to all-time highs during the buying frenzy in growth stocks in 2021. However, both electric vehicle (EV) makers subsequently shed nearly 90% of their value as their revenue growth cooled off and rising interest rates popped their bubbly valuations. The broader slowdown of the EV market exacerbated that pain.

Yet, two key facts set Nio and Rivian apart from many of the EV makers that were washed away by that sector-wide sell-off. First, Nio and Rivian are already producing tens of thousands of vehicles annually as other smaller EV makers struggle to ramp up their production. Second, Nio and Rivian both went public through traditional IPOs instead of merging with special purpose acquisition companies (SPACs), which were notorious for making over-the-top forecasts during their pre-merger presentations.

So should contrarian investors buy Nio or Rivian even as the bulls shun most EV stocks?

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Source Fool.com