A wide range of electric vehicle (EV) stocks are gaining today as the broad recovery in equities continues. Specifically, speculators appear to be seeing a green light on Tuesday.
Whether it’s Rivian (NASDAQ:RIVN), Lucid (NASDAQ:LCID), Lordstown Motors (NASDAQ:RIDE), QuantumScape (NYSE:QS), Workhorse (NASDAQ:WKHS) or Fisker (NYSE:FSR), investors are piling into EV stocks heavily right now. These high-growth names are among the companies many growth-oriented investors continue to focus on. Indeed, that’s for good reason. The global EV market is expected to continue to balloon as the world shifts toward electrification.
Perhaps this strong secular tailwind is enough of a reason for investors to buy these stock en masse. Indeed, today’s price action is taking place with few catalysts behind these major EV stocks.
That said, let’s take a look at a few of the key factors that may be driving this sector higher right now.
Why Are EV Stocks Surging Today?
Notably, today’s price action with EV stocks is taking place with a strong backdrop. All major indices have moved markedly higher today. Leading the pack is the tech-heavy Nasdaq, which has appreciated more than 1.5% once again today.
Most of these major EV stocks can be found in the Nasdaq, for good reason. These companies are often viewed more as tech stocks than auto manufacturers. With battery technology improving (hello, QuantumScape), the hope is that electric vehicles will become ubiquitous in the market in short order.
Speaking of QuantumScape, this battery manufacturer does have some interesting news to report. Today, various reports cited the partnering of QuantumScape with Porsche. This news certainly doesn’t surprise many investors, given the previous $300 million investment in QuantumScape made by Porsche parent company Volkswagen (OTCMKTS:VWAGY).
Additionally, there appears to be some very simple dip buying taking place among EV stocks today. Companies like Rivian have seen their share prices pummeled in recent months. Accordingly, many seem to believe these stocks are too cheap to ignore.
I think the next few months could be pivotal for EV stocks. Investors looking for momentum have found it in the EV sector. Which way the momentum is going to trend over the medium term is the key question right now.
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 InvestorPlace.com Publishing Guidelines.
