Why Are EV Stocks TSLA, GOEV, PSNY, MULN, RIVN, LCID Up Today?

  • Shares of many electric vehicle companies are up big on potentially game-changing news.
  • Tesla (TSLA) plans to open its Supercharger network to other electric-powered vehicles.
  • EV stocks spiked up as their underlying companies can piggyback off Tesla’s enviable infrastructure.
EV stocks - Why Are EV Stocks TSLA, GOEV, PSNY, MULN, RIVN, LCID Up Today?

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Many EV stocks have gained considerable market value on Friday as Tesla (NASDAQ:TSLA) presented a potential gamechanger. According to a White House memo, the pioneering icon will begin production of new equipment that will allow non-Tesla EV drivers to use Tesla Superchargers.

According to Jalopnik, Tesla has been running a pilot program to allow EV drivers in Europe to access its charging network. In part, the announcement bolstered EV stocks because it arrived unexpectedly quickly. Although Tesla CEO Elon Musk vocally supported an open charging network, he never really converted words into action. Further, Musk and President Joe Biden have not always seen eye to eye.

Now that bygones are apparently bygones, the news appears to be positive for EV stocks. For the non-Tesla names, access to the company’s charging network would go a long way toward easing range anxiety. According to U.S. News & World Report, “Tesla Superchargers are located in all 50 U.S. states, as well as Puerto Rico.”

While premium-vehicle manufacturers like Rivian Automotive (NASDAQ:RIVN) and Lucid Group (NASDAQ:LCID) will enjoy the sudden boost in public charging coverage, the companies that might stand to benefit the most are businesses that are aiming toward middle-income consumers like Canoo (NASDAQ:GOEV), Polestar (NASDAQ:PSNY) and Mullen Automotive (NASDAQ:MULN).

A Gift to EV Stocks

PSNY, GOEV, and MULN closed up 5.1%, 6.2% and 9.4%, respectively. Less excitingly, RIVN closed up 1.1% while LCID has gained 0.9%.

While all non-Tesla EV stocks will enjoy the fruits of Tesla’s infrastructural labor, the companies that are focusing on middle-income consumers will likely disproportionately enjoy the unexpected bounty. And from Tesla’s angle, since it is not yet competing in the middle-income arena, the opening of its charging network isn’t giving up that much of an edge.

As well, Tesla should enjoy a significant boost in revenue. Therefore, the announcement appears to be a gift to all EV stocks.

One Major Question Remains

Still, a nagging question about the opening of the Supercharger network is how Tesla owners will feel about it. Part of paying for the expense of a Tesla EV is exclusive access to the company’s charging ecosystem. Now that EV masses will eventually enter the fray, will that make charging a Tesla more inconvenient through longer lines?

Obviously, the jury’s still out. Overall, the news is positive for all EV stocks, including TSLA. However, it’s possible that Tesla owners might feel the brand has gotten a little bit diluted.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/why-are-ev-stocks-tsla-goev-psny-muln-rivn-lcid-up-today/.

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