Tesla, Lucid and Canoo lead big gains in EV sector after China's Xi Jinping talks up technology
The electric vehicles sector got jolts of positive news on Monday and broke higher along with the rest of the stock market.
Canoo (GOEV) soared 15.12% after update on a new vehicle order.
Proterra (PTRA) gained 7.27% after BTIG issued a strong bull call.
BYD Company Limited (OTCPK:BYDDF) also issued an encouraging deliveries and profit forecast.
Chinese electric vehicle stocks are higher after President Xi Jinping's comments at the Chinese Communist Party meeting are being interpreted by analysts as neutral to positive for the sector. Word counters noted that Xi Jinping said "technology" 40 times during his main talk compared to just 17 times during the 2017 Congress. The read-through is that there is reduced risk that EV joint ventures and partnerships in China may stall out even with China pledging for self-reliance with technology.
Also in the mix, the Paris Motor Show is throwing a spotlight on the aggressive electric vehicle plans of global auto manufacturers and there is more discussion on the positive impact for EV players from the Inflation Reduction Act.
Gainers included Vicinity Motor Corp. (VEV) +13.41%, Workhorse Group (WKHS) +8.55%, Lucid Group (LCID) +8.50%, Aeva Technologies (AEVA) +8.11%, Mullen Automotive (MULN) +7.66%, Nio (NIO) +7.19%, Tritium DCFC Limited (DCFC) +6.47%, Rivian Automotive (RIVN) +5.65%, Fisker (FSR) +5.05%, Arrival (ARVL) +4.53%, Stellantis (STLA) +4.21%, and XPeng (XPEV) +4.20%.
Tesla (TSLA) moved 6.00% higher just a few days ahead of the electric vehicle giant's earnings report.
Read more about the broad market rally on Monday morning.