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Tue, June 6 at 7:00PM ET

EV Stocks: Why LI, XPEV, WKHS, RMO and NIO Are Riding Higher Today

Today, investors in a range of electric vehicle (EV) stocks are having very good days. Chinese EV stocks Li Auto (NASDAQ:LI), Xpeng (NYSE:XPEV) and Nio (NYSE:NIO) are all up between 7% and 10% today. U.S. EV company Workhorse (NASDAQ:WKHS) is up by 4%, with energy-storage company Romeo Power (NYSE:RMO) up by 6% currently.

An electric vehicle is hooked up to a charging cable.
Source: Shutterstock

Indeed, these early stage, high-growth EV stocks are ones that benefit from the lower bond yields we’ve seen of late. With the U.S. 10-Year Treasury now trading around 1.3%, hypergrowth stocks have once again come into focus. Additionally, it appears the bond market has come off of its lows around 1.1%, suggesting a deeper Covid-related recession may not be in the cards.

In short, the outlook is improving for these high-growth EV stocks. Given this macroeconomic backdrop, investors may be more enticed to consider a broad array of growth plays in the EV sector. However, many of these stocks also have their own idiosyncratic catalysts today.

Let’s discuss what’s going on with these various EV stocks right now.

Why EV Stocks Are Higher Today

For the Chinese EV players, it appears a variety of factors are at play today. For Nio, the company announced earlier this month its plans to add on 3,700 battery swap locations. This would more than 10x the company’s existing infrastructure, signaling Nio’s intention to lead the EV market in the battery-swap segment.

Li Auto reported second-quarter deliveries that reached new highs and also blew away expectations. With competition heating up, particularly in the Chinese EV market (the largest globally), investors seem to have their eye on LI stock today.

Additionally, Xpeng was added to the Hang Seng Composite Index on July 20. This move adds liquidity to XPEV stock and broadens the company’s investor base. Amid the race to market share in the Chinese EV market, any catalyst such as this is being viewed positively by investors today.

U.S. EV stocks Romeo and Workhorse appear to be following the trend. Today, it’s been reported that 90% of EV stocks are green. Accordingly, it appears this is a sector-specific shift as much as anything today.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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