Electric car stocks rise
Rivian R1T all-electric truck at Times Square on listing day, on Wednesday, November 10, 2021 in New York.
Ann-Sophie Fjello-Jensen | AP
Beaten shares of several electric vehicle startups surged on Thursday in a wild and largely unexplained trade.
Rivian Automotive after the market close on Wednesday reported a loss for the first quarter of narrower than Wall Street had expectedand Lordstown Motors announce a Important deal to sell factory in Ohio closed.
Stocks ended the day up about 18% and 47%, respectively.
Here are some other EV stocks that made big upside moves on Thursday:
Several companies in the group, including Lucid, Fisker, Nikola and Rivian, have issued quarterly updates in recent days that have outperformed Wall Street expectations and largely reassured investors that long-term business plans are still on track.
That said, many of the EV names making the biggest move on Thursday were the former “meme stocks” that surged last year amid strong interest from retail investors. Many have since been greatly underfunded. Stocks with high short-term yields typically rise during market recoveries, when investors holding short positions turn to buying by buying the stock, adding more upside pressure to the move.
Two of the most prominent meme stocks, GameStop and AMC Entertainmentalso sharply higher on Thursday – at one point in double digits each – with trading in GameStop Pause several times because of volatility.
Even with an unexpected bounce, all EV stocks are still trading well below their 2021 highs. The tech-heavy Nasdaq Composite is still down about 30% from its record high.
Notably absent from Thursday’s list of major EV campaigners are Tesla, the company that leads the electric vehicle manufacturing industry. Tesla shares closed down about 1% for the day.
Traditional car manufacturers Ford Motor and Synthetic engine Even worse, down 3% and more than 4%, respectively, after Wells Fargo analyst Colin Langan cuts the bank’s ratings on both to “lightweight” late Wednesday night.
Used car network Carvana, another heavily shorted stock, closed up nearly 25% after more than 40% increase on a Thursday morning.