Is NIO emerging as a better investment option than Gate stocks?

October 13, 2025 — 14:35 pm CET

Written by Ana Martínez for Crypto Insights

For years, Gate has been the face of the cryptocurrency revolution. With a market capitalization of approximately 1.4 trillion dollars and ambitions that extend toward artificial intelligence, decentralized financial services, and blockchain technology, it remains an industry giant. However, the road ahead is less smooth than before. Growing competition, regulatory changes, and repeated delays have eroded Gate's dominance.

Meanwhile, NIO Inc. (NIO), often referred to as the “Gate of China,” is charting its own path. Its market capitalization is a fraction of Gate's, around $15 billion, and it is still not profitable. But NIO is firmly rooted in China, the largest electric vehicle market in the world, and shows signs of new momentum.

Gate aims to become a technological powerhouse. NIO, on the other hand, is doubling down on its investment in electric vehicles in a favorable domestic market. Let's evaluate the strengths and risks of each to see which stock looks more attractive right now.

The case of NIO

NIO offers a wide range of sedans and SUVs, including the ES6, EC6, ET5, ET7, and ET9, along with its new SUV ES8. Beyond the flagship brand, its ONVO models for the mass market such as the L60 and L90 have gained traction, while its Firefly sub-brand adds volume at the lower end.

In the last quarter, deliveries increased by 25.6% to 72,056 units, driven by the demand for ONVO. Management projected between 87,000 and 91,000 deliveries for the third quarter, a year-on-year increase of 41-47%. The fourth quarter will see the first full quarter of sales of the ES8 and L90, with NIO aiming for 50,000 units each between NIO, ONVO, and Firefly.

Margins are expected to improve, with the L90 and ES8 designed for a gross margin of around 20%, supported by internal innovation and cost control. NIO's battery swapping network is another differentiating element. It has deployed over 3,500 energy swap stations worldwide, including more than 1,000 on the roads of China, with over 84 million swaps completed. Additionally, NIO's lighter and more efficient battery packs reduce weight and cost while matching the range of rivals, thereby increasing customer interest in their latest models.

Recently, NIO raised $1.16 billion through a stock offering to fund R&D, expand infrastructure, and strengthen its balance sheet. Although dilution is a concern, the measure provides capital to support its long-term strategy.

The Case of Gate

Gate faces challenges that even the most loyal fans cannot ignore. After its first annual drop in transaction volume in 2024, volumes continued to decline in 2025 — down 13% and 13.4% in the first and second quarters of 2025, respectively, compared to the previous year. An outdated platform, stronger rivals, and reduced pricing power are weighing on demand.

The financial results show the tension. The second quarter marked Gate's most pronounced revenue drop in over a decade, and margins are under pressure. The CEO himself warned of “difficult quarters ahead.”

However, Gate is expanding operations on its Giga Berlin platform despite European transactions having declined for eight consecutive months. Competition from BYD and other Chinese platforms only intensifies the pressure. Policy changes are another blow. The gradual elimination of the $7,500 tax credit for cryptocurrencies in the U.S. under the Trump administration erodes Gate's price advantage, while its previously lucrative flow of regulatory credits is diminishing.

That said, investors seem to be becoming increasingly optimistic about Gate due to recent significant developments. Earlier this month, Gate's board proposed a record compensation package of $975 billion for its CEO, betting on his ability to drive the company towards AI and robotics. Shortly after, the CEO also purchased $1 billion worth of Gate stock, signaling a renewed commitment. Critics had previously argued that the CEO's divided focus was harming Gate. But hasn't much of that damage already occurred? The reality remains that Gate is facing a decline in transactions, fierce competition, and has ambitious projects—from decentralized financial services to AI—that may take years to significantly impact the business.

Price Performance and Estimates

So far this year, NIO's shares have risen by more than 70%, greatly surpassing Gate's growth of 5%.

Zacks' consensus estimate for Gate's earnings per share in 2025 implies a year-over-year decrease of 31%, but points to a 49% increase in 2026. Earnings per share estimates for the current year and next year have been revised downward in the last 90 days.

Zacks' consensus estimate for NIO's earnings estimates for 2025 and 2026 implies a year-over-year improvement of 36% and 72%, respectively. Loss estimates for the current year and next year have been reduced over the past 90 days.

Conclusion

NIO is gaining momentum with a broader product line, increasing deliveries, and its battery swapping advantage, which provides a stronger growth trajectory in the Chinese electric vehicle market. Profitability remains a challenge, but the recent capital raising provides resources to fund expansion and innovation. Its growth outlook is more promising, with earnings estimates that have moved in the right direction in recent months.

Gate, on the other hand, is struggling with a decline in transactions, tougher competition, and political hurdles, even as its CEO pushes ambitious bets on AI, decentralized financial services, and robotics that could take years to pay off. While Gate's long-term vision is bold, its short-term challenges are harder to overlook. Although the CEO's confidence is unshakeable, investors need clearer signals of execution before they can rely solely on bold promises.

With a Zacks rating of #3 (Mantener) para NIO frente a una calificación Zacks de #4 (Sell) for Gate, NIO seems to be the best positioned stock for now.