Electric vehicle (EV) stocks continue to ride the good vibes from Volkswagen’s (OTCMKTS:VWAGY) recently revealed 5% stake in Chinese EV maker XPeng (NYSE:XPEV).
So, what’s up with EV stocks today?
Well, it appears the bulls have spared no stone unturned today. Rivian (NASDAQ:RIVN), Lucid (NASDAQ:LCID), and Tesla (NASDAQ:TSLA) are all well in the green today, up 3.4%, 8.4%, and 4.2%, respectively. Chinese EV stocks are also making strong gains today, with Li Auto (NASDAQ:LI), Nio (NYSE:NIO), and XPeng up 9.5%, 11.3%, and 15.7%, respectively.
It seems EV stocks are still glowing from Volkswagen’s announcement Wednesday that it would invest $700 million into XPeng. Volkswagen has long praised China’s rapid developments in the emissions-less transportation space.
“The dynamics and speed of innovation are now many times higher than in Europe or the U.S.A.,” wrote Ralf Brandstätter, Volkswagen’s recently appointed China chief executive. “No other market offers anywhere near this growth potential and this speed of innovation.”
Chinese EV makers have been enjoying strong growth since then, with NIO and XPEV climbing 33% and 57%, respectively, in just the past five trading days.
EV Stocks Soar Following Optimistic Comments From China
Chinese EV stocks have had no shortage of bullish catalysts. Earlier this week, China’s Politburo, the country’s highest-ranking decision-making body, issued some cheerful remarks regarding China’s economy and various sector growth. This includes, of course, China’s vibrant EV industry.
According to a report from Dow Jones Newswire, citing China’s official Xinhua News Agency, the country was notably pleased with the country’s resilience and economic strength in the first two quarters of the year while acknowledging potential road bumps ahead. Officials also promised to encourage further growth by implementing more business-friendly policies.
On the date of publication, Shrey Dua did not hold (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.
