Electric vehicle stocks gained traction again on Tuesday after a recent rough stretch tied to concerns about China, as well as the impact of higher interest rates on valuation and debt loads. Once again, EV stocks have moved in a tight correlation to the tech sector as a whole, although with even more volatility.
Chinese EV upstarts Nio (NYSE:NIO) +7.73%, Li Auto (LI) +7.43%, and XPeng (XPEV) +6.38% were notable advancers as investors became incrementally more positive on the outlook of President Xi Jinping gaining more power.
Leading the EV rally, Ouster (NYSE:OUST) skyrocketed 28.55% off the improved sentiment, although at $1.20 the stock is still well below its 52-week high of $7.95.
Gainers also included Blink Charging (BLNK) +10.68%, Faraday Future Intelligent Electric (NASDAQ:FFIE) +9.56%, Lucid Group (LCID) +8.91%, Polestar Automotive (PSNY) +7.19%, Workhorse Group (WKHS) +6.95%, Niu Technologies (NIU) +5.27%, Canoo (GOEV) +4.70%, and Hyzon Motors (NASDAQ:HYZN) +4.65%.
Rivian Automotive (RIVN) also participated in the rally with a 6.60% jump after Mizuho defended the stock. Of note, Rivian is also reported to have already fixed a significant majority of the +12K recalled vehicles.
Meanwhile, Tesla (TSLA) showed a 4.51% gain on a slower news day than normal for the EV juggernaut. However, longtime bull Cathie Wood from ARK Invest did chip in with the contention that Tesla (TSLA) could expand its overall addressable market by 10X if the company were to develop a product that could sell at half the price of its current offerings.