Several electric vehicle (EV) stocks are bouncing higher today on a slew of news out of the Paris Motor Show.
Stocks of companies such as Rivian Automotive (NASDAQ:RIVN), Lucid Group (NASDAQ:LCID), and Fisker (NYSE:FSR) are each up more than 3% today on reports of electric vehicle advances coming out of the Paris Motor Show.
The stocks are also getting a boost from news that Nikola (NASDAQ:NKLA) is closing its $144 million acquisition of battery-pack maker Romeo Power (NYSE:RMO).
What Happened
The big news out of the Paris Motor Show over the weekend includes Fisker planning for more production of its electric vehicles in the U.S., and Dutch automaker Stellantis (NYSE:STLA) unveiling a brand new electric Jeep.
At the same time, Nikola said that its planned purchase of Romeo Power can now proceed as planned after Romeo Power’s shareholders agreed to tender a majority of that company’s outstanding shares. Investors had to exchange at least half of their RMO shares for the acquisition by Nikola to be completed.
Why It Matters
The news out of the Paris Motor Show, coupled with Nikola’s successful purchase of Romeo Power, provides a wave of positive news for the electric vehicle sector and investors are responding by purchasing beaten-down stocks of electric vehicle makers.
Before today, shares of RIVN, LCID, NKLA and FSR were each down more than 60% on the year. The positive news in recent days, which indicates that the EV industry is growing and maturing, has boosted investor confidence in the sector to the point where people are willing to purchase shares of EV manufacturers.
What’s Next for EV Stocks?
The Paris Motor Show runs until Oct. 23. Over the next week, more news related to electric vehicles can be expected to be released from the international show, and this could continue to drive positive investor sentiment toward the electric vehicle industry and individual stocks.
This is welcome news for a group of stocks that has been badly beaten down in this year’s market selloff.
On the date of publication, Joel Baglole 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.
