The electric vehicle sector saw strong gains on Tuesday with investors bidding up some of the beaten-down startups in particular.
Some of the positive sentiment may be tied to President Joe Biden and Chinese President Xi Jinping saying at the G-20 summit in Bali that the two nations would have more frequent communications. In a three-hour-long meeting between Biden and Xi at the conference, Biden said the U.S.'s One China policy has not changed and the U.S. is not looking for conflict with the world's most populous country.
The downtick in the producer prices inflation reading is also seen as a positive with the sector increasingly reacting to interest rate developments.
Notable EV gainers included Aeva Technologies (AEVA) +16.09%, Li Auto (LI) +8.83%, TuSimple (TSP) +8.56%, QuantumScape (QS) +8.48%, Niu Technologies (NIU) +8.36%, Hyliion Holdings (HYLN) +7.78%, Luminar Technologies (LAZR) +7.35%, REE Automotive (REE) +6.86%, Phoenix Motor (PEV) +6.37%, and Workhorse Group (WKHS) +6.29%.
Luxury electric vehicle maker Lucid Group (LCID) gained 3.95% after revealing several new versions of its Air sedan, including an all-wheel drive Lucid Air Pure with 410 miles of range and the Lucid Air Touring with all-wheel drive, 620 horsepower and an EPA-estimated 425 miles of range.
Read a breakdown on Lucid Group from Seeking Alpha author The Asian Investor.