Investing in Electric Scooter Companies: A Comprehensive Guide

The electric scooter industry has emerged as one of the most dynamic sectors within the broader electric vehicle market, attracting billions of dollars in investment capital and reshaping urban transportation worldwide. With the ever-increasing demand for eco-friendly transportation options and growing concerns about traffic congestion and carbon emissions, investors are actively seeking opportunities to participate in this rapidly expanding industry. The global electric scooters market, valued at USD 48.90 billion in 2025, is projected to reach approximately USD 321.59 billion by 2034, representing a compound annual growth rate (CAGR) of 23.28%. This explosive growth trajectory makes electric scooter companies a promising investment opportunity for both retail and institutional investors.

However, investing in the electric scooter sector requires careful navigation of a complex landscape that includes publicly traded manufacturers, private sharing companies, indirect investment vehicles, and emerging crowdfunding opportunities. The market has experienced significant volatility, with some companies achieving remarkable success while others, such as Bird, have filed for bankruptcy despite once commanding multi-billion dollar valuations. Understanding the different investment options available, conducting thorough due diligence, and recognizing both the opportunities and risks are essential for making informed investment decisions in this evolving industry.

Understanding the Electric Scooter Market Landscape

The electric scooter industry encompasses two distinct but interconnected segments: manufacturing companies that produce and sell electric scooters to consumers, and sharing companies that operate rental fleets in cities worldwide. Each segment presents unique investment characteristics, risk profiles, and growth dynamics that investors must understand.

Manufacturing Segment: This sector includes companies like NIU Technologies, Xiaomi, Segway-Ninebot, and Yadea Group that design, manufacture, and distribute electric scooters to retail consumers. The manufacturing segment has demonstrated stronger financial stability compared to the sharing economy model, with established companies reporting consistent revenue growth and, in some cases, profitability. The electric motorcycle and scooters manufacturing market was valued at USD 36.4 billion in 2024 and is expected to reach USD 110.6 billion by 2034, growing at a CAGR of 12.1%.

Sharing Economy Segment: Companies like Lime, Bird (now in bankruptcy), and Spin operate dockless electric scooter rental services in urban areas. This segment has proven more volatile and challenging from an investment perspective, with many companies struggling to achieve sustainable profitability despite massive venture capital funding. While Lime reported achieving free cash flow positivity in 2024 with $686 million in revenue (up 32% year-over-year), Bird filed for bankruptcy in 2024 despite having raised approximately $2 billion in investment capital. The contrasting fortunes of these companies highlight the importance of careful company selection within this segment.

Market Drivers: Several key factors are propelling growth across both segments, including government incentives for zero-emission transportation (covering up to 25% of development costs for manufacturers in some regions), increasing urbanization and traffic congestion, rising fuel costs, advances in battery technology that improve range and performance, and growing environmental consciousness among consumers, particularly younger demographics.

Direct Investments in Publicly Traded Electric Scooter Companies

Investing directly in electric scooter companies through purchasing shares in publicly traded entities offers the most straightforward approach to gaining exposure to this sector. However, investors should note that the number of pure-play electric scooter stocks available on U.S. exchanges is limited, with many companies trading over-the-counter or on foreign exchanges.

NIU Technologies (NASDAQ: NIU): NIU Technologies represents the most accessible and actively traded electric scooter manufacturer for U.S. investors. Founded in 2014 in Beijing, China by former Xiaomi employees, NIU has rapidly grown to become one of China's largest electric vehicle manufacturers, specializing in electric mopeds and scooters. The company's stock performance in 2025 has been remarkable, with shares nearly doubling year-to-date, jumping approximately 150% amid soaring electric moped sales.

NIU's recent financial performance demonstrates strong momentum:

• Q1 2025: NIU reported a 57.4% year-over-year increase in e-scooter sales totaling 203,313 units, with revenue reaching RMB 682.0 million (approximately $94 million USD), representing a 35.1% increase from the previous year. The company's net loss narrowed to RMB 38.8 million, down from RMB 54.8 million in Q1 2024.


• Q2 2025: The company achieved revenues of RMB 1,255.7 million, up 33.5% year-over-year, driven by a 36.7% increase in e-scooter sales volume to 350,090 units. NIU returned to profitability with a net income of RMB 5.9 million, compared to a net loss of RMB 24.9 million in Q2 2024.


• 2024 Full Year: NIU's revenue was RMB 3.29 billion, an increase of 24.00% compared to the previous year's RMB 2.65 billion. Global sales reached 767,000 units, up 25.9%.

With a market capitalization of approximately $176 million and a price-to-sales (P/S) ratio of 0.36, NIU offers attractive valuation metrics for investors seeking exposure to the electric scooter manufacturing sector. However, investors should be aware that the company's strong 2025 performance was driven primarily by domestic Chinese market growth, while international sales faced headwinds from tariffs and trade challenges. Before investing in NIU, research the company's quarterly earnings reports, competitive positioning in the Chinese market, expansion strategies for international markets, battery technology and product innovation pipeline, and exposure to U.S.-China trade policies and potential tariff impacts.

Xiaomi Corporation (OTC: XIACY): While Xiaomi is widely known for smartphones and consumer electronics, the company also manufactures electric scooters through partnerships and its own product lines. Xiaomi trades over-the-counter in the U.S. based on the company's Hong Kong listing (OTC: XIACY), though it's important to note that this OTC listing is not regulated or sponsored in the same way as the underlying stock on the Hong Kong Stock Exchange. Xiaomi offers broader diversification beyond electric scooters, which reduces sector-specific risk but also dilutes pure-play exposure to the electric scooter market.

Segway-Ninebot (689009.SS): Ninebot, owner of the iconic Segway scooter brand, trades on the Shanghai Stock Exchange under ticker 689009.SS. The company has a market capitalization of approximately $272.3 million and a P/S ratio of 0.36, putting it on par with NIU in valuation metrics. However, Segway-Ninebot stock is not easily accessible to most U.S. retail investors without specialized international brokerage accounts, limiting its practicality as an investment option for many American investors.

Bird Global (OTC: BRDS): Bird, once a high-flying electric scooter sharing company valued at $2.3 billion during its 2021 SPAC merger, was delisted from the NYSE in September 2023 and now trades over-the-counter as a penny stock under ticker BRDS. The company filed for bankruptcy in 2024 despite having raised approximately $2 billion in investment capital over its lifetime. Bird's collapse serves as a cautionary tale about the risks inherent in the scooter-sharing business model and the importance of distinguishing between venture capital hype and sustainable business fundamentals. Most financial advisors would not recommend investing in Bird given its bankruptcy status and penny stock classification.

Indirect Investments Through ETFs and Diversified Funds

If you prefer a more diversified approach that spreads risk across multiple companies and reduces the volatility associated with investing in individual stocks, consider investing in exchange-traded funds (ETFs) that focus on the broader electric vehicle market, including electric scooters. This strategy provides exposure to the electric scooter industry while mitigating company-specific risks through diversification across manufacturers, battery producers, charging infrastructure companies, and autonomous driving technology developers.

Global X Autonomous & Electric Vehicles ETF (DRIV): The Global X Autonomous & Electric Vehicles ETF is one of the most popular options for gaining diversified exposure to the electric vehicle ecosystem. With almost $340 million in net assets under management as of mid-2025 and 75 distinct holdings, DRIV provides broad exposure to companies involved in autonomous vehicle technology, electric vehicle production, and related infrastructure. The ETF's top holdings include technology giants like Alphabet, Nvidia, Microsoft, and Apple, reflecting the fund's focus on companies developing enabling technologies for autonomous and electric vehicles. DRIV carries an expense ratio of 0.68%, which is moderate for a thematic ETF. While DRIV doesn't exclusively focus on electric scooters, it includes exposure to companies across the electric mobility spectrum, providing indirect benefits from the growth of the electric scooter market.

KraneShares Electric Vehicles & Future Mobility ETF (KARS): The KraneShares Electric Vehicles & Future Mobility ETF tracks the Bloomberg Electric Vehicles Index and offers targeted exposure to companies positioned to benefit from the transition to electric vehicles. With an expense ratio of 0.72%, total assets of more than $75 million in mid-2025, and more than 50 total holdings, KARS provides diversified access to EV manufacturers, battery producers, and related technology companies. This ETF may include some exposure to electric scooter manufacturers, particularly Asian companies like NIU Technologies and others operating in the micromobility space.

Global X Lithium & Battery Tech ETF (LIT): While not directly focused on electric scooters or vehicles, the Global X Lithium & Battery Tech ETF tracks the performance of the Solactive Global Lithium Index by investing in lithium miners, refiners, and battery manufacturers. With more than $1 billion in assets under management as of mid-2025 and an expense ratio of 0.75%, LIT provides exposure to a critical component of the electric scooter supply chain. Since battery technology represents one of the most significant cost factors and performance differentiators in electric scooters, improvements in battery technology and reductions in battery costs directly benefit electric scooter manufacturers and operators. LIT offers a way to invest in this crucial enabler of the electric scooter industry without taking on the risks specific to scooter companies themselves.

Market Context for EV ETFs: Electric vehicles captured 18% of global new vehicle sales in 2023, and projections suggest this figure could reach 40% by 2030. This broader adoption of electric mobility creates a favorable environment for all segments of the electric vehicle market, including electric scooters. Investors should note that while these ETFs provide excellent diversification, they typically have limited or no direct exposure to pure-play electric scooter companies, instead offering broader electric mobility exposure that indirectly benefits from electric scooter industry growth.

Crowdfunding and Private Investment Opportunities

Another way to invest in electric scooter companies, particularly emerging startups and early-stage ventures, is through equity crowdfunding platforms. These platforms democratize access to startup investing, allowing retail investors to participate in early-stage funding rounds that were traditionally reserved for venture capitalists and accredited investors.

SeedInvest: SeedInvest is a leading equity crowdfunding platform that connects investors with vetted startups and early-stage companies across various industries, including transportation and mobility. The platform conducts due diligence on companies before allowing them to raise capital, accepting less than 1% of applicants. Through SeedInvest, you may find opportunities to invest in emerging electric scooter manufacturers, sharing platforms, or companies developing related technologies such as battery systems, charging infrastructure, or fleet management software. Investment minimums typically range from $500 to $1,000, making these opportunities accessible to a broad range of investors.

StartEngine: StartEngine is another prominent equity crowdfunding platform that has facilitated hundreds of millions of dollars in startup investments. The platform allows companies to raise capital through Regulation Crowdfunding (Reg CF) and Regulation A+ offerings, providing retail investors access to private company shares. StartEngine has hosted numerous transportation and mobility companies, and periodically features electric scooter-related investment opportunities. The platform provides detailed company information, financial statements, and risk factors to help investors make informed decisions.

EquityZen (Secondary Markets): EquityZen specializes in providing access to pre-IPO shares of private companies through secondary market transactions. For example, EquityZen has facilitated investments in Lime (the electric scooter sharing company) for accredited investors seeking exposure before a potential public offering. In June 2025, Lime hired Goldman Sachs and JPMorgan to prepare for a U.S. IPO potentially occurring in 2026, following the company's achievement of free cash flow positivity and $686 million in revenue for 2024. Accredited investors can potentially purchase shares from existing shareholders, employees, or early investors through platforms like EquityZen, though these opportunities typically require higher minimum investments ($10,000 or more) and are subject to liquidity restrictions.

Important Considerations for Crowdfunding Investments: While crowdfunding platforms provide exciting opportunities to invest in innovative startups with potentially significant returns, investors must understand the substantial risks involved. Startup investments are inherently risky, with the majority of startups failing to achieve their projected growth or provide investment returns. There is no guarantee of success, and investors should be prepared for the possibility of losing their entire investment. Key considerations include:

• Liquidity Risk: Shares in private companies are typically illiquid, meaning you may not be able to sell your investment until an exit event (acquisition or IPO) occurs, which could take years or may never happen.


• Valuation Uncertainty: Private company valuations can be subjective and inflated, particularly in hot sectors like electric mobility where VC speculation has historically driven valuations beyond sustainable levels.


• Limited Information: Private companies are not subject to the same disclosure requirements as public companies, making thorough due diligence more challenging.


• Dilution Risk: Early-stage companies typically raise multiple rounds of funding, which can dilute your ownership percentage over time.


• Regulatory Changes: Electric scooter sharing companies face significant regulatory risks as cities implement new rules, ban services, or impose operating restrictions.

The electric scooter sharing segment has proven particularly challenging, with venture capital firms contributing 40% of total funding in the electric mobility scooter sector but many companies failing to achieve sustainable profitability. As one analysis noted, "as of 2024, it seems more companies have failed than succeeded, at least where rentals are concerned, as the micromobility market is extremely volatile and driven by VC speculation rather than sustainable profits." Investors should approach crowdfunding opportunities with caution, invest only capital they can afford to lose, and maintain realistic expectations about potential returns and timelines.

Key Investment Considerations and Due Diligence

Successfully investing in electric scooter companies requires thorough research and careful evaluation of multiple factors that can significantly impact investment outcomes. Whether you're considering direct investments in public companies, diversified ETFs, or crowdfunding opportunities, these considerations should guide your decision-making process:

Financial Health and Profitability: Examine the company's financial statements, including revenue growth trends, gross margins, operating expenses, and path to profitability. NIU Technologies' return to profitability in Q2 2025 after several quarters of losses demonstrates the importance of tracking financial progress. Lime's achievement of free cash flow positivity represents a critical milestone that distinguishes it from failed competitors. Look for companies with sustainable unit economics, reasonable burn rates, and realistic timelines for achieving profitability if they're not already profitable.

Market Position and Competitive Advantages: Assess the company's market share, brand recognition, distribution networks, and competitive positioning. In the manufacturing segment, consider factors like product quality, design innovation, battery technology, pricing strategy, and customer reviews. For sharing companies, evaluate fleet size, number of cities served, user acquisition costs, ride frequency, regulatory relationships, and competitive differentiation. Companies with strong market positions and defensible competitive advantages are more likely to succeed in this increasingly crowded market.

Geographic Exposure and Regulatory Environment: Understanding where a company operates and the regulatory environment in those markets is crucial. NIU Technologies derives the majority of its revenue from China, exposing investors to Chinese market dynamics, economic conditions, and regulatory policies. The company has also faced challenges expanding internationally due to tariffs and trade restrictions. For sharing companies, city-by-city regulations can dramatically impact operations, with some cities banning services entirely, imposing fleet size caps, or requiring expensive permits and insurance. Diversification across multiple markets can reduce regulatory risk.

Technology and Innovation: Battery technology, motor efficiency, connectivity features, and software capabilities increasingly differentiate products in the electric scooter market. Companies investing in research and development, protecting intellectual property through patents, and consistently introducing innovative products are better positioned for long-term success. Consider whether the company is keeping pace with technological advances or falling behind more innovative competitors.

Management Team and Governance: Evaluate the experience, track record, and credibility of the management team. Have they successfully built and scaled businesses before? Do they have relevant industry expertise? Is the board of directors providing appropriate oversight? Companies with strong, proven leadership teams are more likely to navigate challenges successfully and execute their growth strategies effectively.

Valuation Metrics: Compare valuation multiples like price-to-sales (P/S), price-to-earnings (P/E, if profitable), and enterprise value-to-revenue ratios across similar companies to assess whether a stock is reasonably valued, overvalued, or undervalued. NIU's P/S ratio of 0.36 appears attractive compared to broader market averages, potentially indicating undervaluation, though investors should consider why the market has assigned this multiple before concluding it represents a bargain. Be especially cautious of companies with extremely high valuations relative to current revenues or unclear paths to profitability, as these often represent VC speculation rather than sustainable value.

Industry Trends and Market Size: Stay informed about broader industry trends, including market growth projections, consumer adoption rates, government policy changes, technological breakthroughs, and competitive dynamics. The projected growth of the global electric scooters market from $48.90 billion in 2025 to $321.59 billion by 2034 provides a favorable backdrop, but not all companies will benefit equally from this growth. Understanding which segments, geographies, and business models are positioned to capture this growth is essential.

Understanding the Risks of Electric Scooter Investments

While the electric scooter industry offers compelling growth opportunities, investors must recognize and prepare for significant risks that could impact investment returns:

Business Model Viability: The scooter-sharing business model has proven challenging, with many companies struggling to achieve sustainable unit economics. High costs related to scooter procurement, maintenance, replacement due to vandalism and theft, charging logistics, and regulatory compliance have made profitability elusive. Bird's bankruptcy despite raising $2 billion in capital illustrates how even well-funded companies can fail if the fundamental business model is flawed. Manufacturing companies generally have more proven business models, though they face their own challenges including intense competition and margin pressure.

Regulatory Uncertainty: Electric scooter companies, particularly those in the sharing segment, face substantial regulatory risk as local governments implement new rules, adjust permitted fleet sizes, ban services entirely, or impose burdensome requirements. Regulatory changes can significantly impact revenue potential and operating costs, sometimes forcing companies to exit markets entirely. Investors should monitor regulatory developments in key markets and assess how companies are managing relationships with government officials and regulators.

Competition and Market Saturation: Both the manufacturing and sharing segments face intense competition from established players and new entrants. In manufacturing, companies compete with major automotive manufacturers that are expanding into electric two-wheelers, well-funded Chinese competitors with government support, and innovative startups. In sharing, companies battle each other for limited urban space, user attention, and regulatory permits. This competition can lead to price wars, margin compression, and market consolidation that may disadvantage certain players.

Geopolitical and Trade Risks: Many electric scooter manufacturers are based in China or rely heavily on Chinese supply chains, exposing investors to geopolitical tensions, trade disputes, tariffs, and supply chain disruptions. NIU Technologies explicitly cited international headwinds from tariffs as a challenge to its global expansion efforts. Investors should consider how companies are diversifying their supply chains and manufacturing footprints to mitigate these risks.

Technology Obsolescence: Rapid technological advancement in battery technology, motor systems, and vehicle design creates a risk that companies failing to innovate could see their products become obsolete or uncompetitive. Companies must continually invest in R&D to maintain technological competitiveness, which can strain financial resources, particularly for smaller players.

Market Volatility: Electric scooter stocks and the broader electric vehicle sector have demonstrated significant volatility, with prices subject to sentiment shifts, macro economic factors, commodity price fluctuations (particularly lithium and other battery materials), and company-specific news. Investors should be prepared for potentially substantial price swings and consider their risk tolerance before investing.

Building Your Electric Scooter Investment Portfolio Strategy

Given the opportunities and risks outlined above, developing a thoughtful investment strategy is essential for successfully investing in the electric scooter sector:

Diversification Approach: Rather than concentrating investments in a single company or segment, consider building a diversified portfolio that includes exposure to multiple investment types. For example, you might allocate a portion of your portfolio to a publicly traded manufacturer like NIU Technologies for direct exposure, invest in an EV ETF like DRIV or KARS for diversified exposure to the broader electric mobility ecosystem, and reserve a small allocation (no more than 5-10% of your portfolio) for higher-risk crowdfunding opportunities if you're interested in early-stage companies. This diversification helps balance the potential for high returns from individual companies with the risk mitigation benefits of broader market exposure.

Investment Horizon: Electric scooter investments should generally be viewed as long-term holdings (3-5 years or more) rather than short-term trades. The industry is still evolving, companies are in various stages of maturity, and the full market potential will take years to materialize. Short-term volatility is likely, but long-term investors may benefit from the secular growth trend toward electric mobility. If you need access to your capital within 1-2 years, electric scooter investments may not be appropriate.

Position Sizing: Given the risks involved, particularly in individual company investments and crowdfunding opportunities, maintain appropriate position sizes that align with your overall portfolio risk tolerance. Even if you're bullish on the electric scooter industry, concentrating too much capital in this single sector exposes you to sector-specific risks that could significantly impact your overall portfolio. Most financial advisors would recommend limiting exposure to any single thematic investment to 10-15% of your total portfolio at most.

Active Monitoring: The electric scooter industry is dynamic, with frequent developments that can impact investment thesis. Plan to actively monitor your investments by reviewing quarterly earnings reports and financial results, tracking regulatory developments in key markets, following competitive dynamics and market share changes, staying informed about technological innovations and product launches, and reassessing your investment thesis based on new information. Be prepared to adjust your positions if fundamentals deteriorate or if better opportunities emerge.

Dollar-Cost Averaging: Rather than investing a lump sum at once, consider dollar-cost averaging by making regular, smaller investments over time. This strategy helps reduce the impact of market volatility and timing risk by spreading your purchases across different price points. For example, you might invest a fixed amount monthly in NIU Technologies or DRIV rather than committing your entire planned investment at once.

Industry Future Outlook and Emerging Trends

Understanding where the electric scooter industry is headed can help inform investment decisions and identify which companies are best positioned for future success:

Market Consolidation: The electric scooter industry, particularly the sharing segment, is likely to experience continued consolidation as weaker players exit the market or are acquired by stronger competitors. Bird's acquisition of Spin from Tier in September 2023, just before its own bankruptcy filing, exemplifies this consolidation trend. Investors should focus on market leaders with sustainable business models rather than fragmented smaller players that may not survive the shakeout.

Profitability Focus: After years of prioritizing growth over profitability, the industry is shifting toward sustainable unit economics and positive cash flow. Lime's achievement of free cash flow positivity and NIU's return to profitability in Q2 2025 signal this transition. Companies demonstrating clear paths to profitability and disciplined capital allocation are likely to command premium valuations and attract investor capital, while those burning cash without clear profitability timelines will face increased skepticism.

Technology Integration: Future electric scooters will increasingly incorporate advanced technologies including IoT connectivity for fleet management and predictive maintenance, swappable battery systems for faster turnaround times, improved battery chemistry for extended range and lifespan, autonomous capabilities for self-repositioning in sharing fleets, and integration with broader mobility-as-a-service (MaaS) platforms. Companies investing in these technologies while maintaining financial discipline are likely to emerge as industry leaders.

Geographic Expansion: While China and major U.S. and European cities have been the primary markets for electric scooters, significant growth opportunities exist in emerging markets across Southeast Asia, Latin America, India, and Africa, where urbanization is accelerating, traffic congestion is severe, and demand for affordable transportation is high. Companies successfully expanding into these markets while navigating diverse regulatory environments and local competition will unlock new growth avenues.

Regulatory Maturation: As electric scooters become more established in urban transportation ecosystems, regulatory frameworks are likely to mature and stabilize, providing more predictable operating environments for companies. Cities that initially banned scooters are reassessing as technology improves and operators demonstrate better fleet management. This regulatory stabilization could reduce risk and improve the investment case for well-managed companies with strong regulatory relationships.

Integration with Public Transit: Electric scooters are increasingly being recognized as important "first-mile" and "last-mile" solutions that complement public transportation rather than compete with it. Partnerships between scooter operators and transit agencies, integration into trip-planning apps, and co-location of scooters at transit stations represent growing trends that could expand market opportunity and improve the sustainability of sharing business models.

Conclusion: Making Informed Investment Decisions

Investing in electric scooter companies can be a smart way to diversify your investment portfolio, gain exposure to the rapidly growing electric mobility sector, and support the transition toward more sustainable and efficient transportation options. The industry's projected growth from $48.90 billion in 2025 to $321.59 billion by 2034 represents substantial opportunity for investors who make informed, strategic decisions.

However, successful investing in this sector requires moving beyond surface-level enthusiasm and conducting thorough due diligence on individual companies, understanding the different investment vehicles available and their respective risk-return profiles, recognizing the significant risks including business model challenges, regulatory uncertainty, and market volatility, building diversified portfolios rather than concentrating in single stocks or segments, maintaining realistic expectations about timelines and potential returns, and actively monitoring investments and adjusting positions based on evolving fundamentals.

The contrasting trajectories of companies like NIU Technologies (stock up 150% in 2025) and Lime (achieving profitability) versus Bird (bankruptcy despite $2 billion in funding) illustrate that not all electric scooter companies will succeed. Manufacturing companies with proven business models and paths to profitability generally present lower risk than sharing companies, though potentially lower upside as well. ETF investments offer excellent diversification but limited pure-play exposure to electric scooters specifically. Crowdfunding opportunities provide access to emerging companies with potentially high returns but carry substantial risks of total loss.

For most investors, a balanced approach combining some exposure to a strong public company like NIU Technologies with broader market exposure through an ETF like DRIV or KARS represents a prudent strategy. More risk-tolerant investors comfortable with illiquidity might allocate a small portion of their portfolio to crowdfunding opportunities in promising startups, while keeping position sizes appropriate to the elevated risk level.

Ultimately, electric scooter investments should be viewed as part of a broader portfolio strategy rather than a standalone bet. By understanding the different investment options, conducting thorough research, recognizing both opportunities and risks, and maintaining appropriate diversification and position sizing, you can make informed decisions that align with your risk tolerance, investment goals, and time horizon. The electric scooter industry's growth trajectory is compelling, but successful investing requires discipline, patience, and ongoing diligence to navigate this dynamic and evolving sector.