Today’s been a rather notable one for a range of electric vehicle (EV) stocks. Notably, U.S. EV leader Tesla (NASDAQ:TSLA) has surged in today’s session and could see its biggest upside day of the year. This follows a string of daily losses investors have been bemoaning to kick off 2024. That said, other smaller-cap EV names are also seeing impressive upside today, spurring investor interest in the sector once again. Lucid Motors (NASDAQ:LCID), Nikola (NASDAQ:NKLA) and Fisker (NYSE:FSR) are among the EV stocks seeing big upside today.
Lucid is among the leading EV stocks in today’s session, rising more than 23% in early afternoon trading. This follows news of a three-year agreement with a Saudi company to provide aluminum panels for Lucid’s U.S.-based manufacturing plants. Additionally, a press release from Fisker touting the company’s commitment to its dealership strategy sent FSR stock up nearly 10% today. Nikola is seeing a surge in interest around its hydrogen-related business model as investors bank on increased investment in this space.
Undoubtedly, there are plenty of macro and sector-specific catalysts driving these stocks higher today. Let’s dive into what investors are watching and why these recent announcements are a big deal.
Why Are EV Stocks Up Today?
The EV sector has faced a series of headwinds to start the year. Worse-than-expected earnings numbers almost across the board have left investors with little hope for growth. Tesla’s recent numbers, which missed on various key metrics, have certainly soured the discussion around these stocks. This comes at a time when demand doesn’t seem to be as robust as it has in the past, interest rates remain high, and the American consumer may be close to tapped out.
That said, the moves we’re seeing in Lucid, Nikola and Fisker today may suggest that some investors believe this rout to start the year has been overdone. At some point, even the most beaten-down stocks in a given cycle are too cheap to ignore. And with greater industry partnerships (in Lucid’s case tied to the Saudis) and a recognition that dealership-based selling models make sense (in the case of Fisker), investors may increasingly feel their outcry has been heard by these companies.
Today, positive catalysts are being treated as such in the EV space. That hasn’t been the case for a few weeks now, it seems. Accordingly, there may be some speculators looking to ramp up bets on this sector to ride the momentum higher. I’m sure a significant portion of today’s rise can be attributed to such activities.
That said, I’m not necessarily sold on whether this rally can be sustained over the coming months. We’ll have to see how these stocks perform in the coming days and weeks. However, it’s nice to see some sort of retracement trade take hold in the market today, particularly for those invested in these companies.
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.
