EV stocks surge as market rises and interest rates fall, but concerns linger about demand

From Nasdaq: 2024-07-12 16:29:00

Electric vehicle stocks have surged this week, with Rivian up 21.6%, Nikola up 12%, and Blink Charging up 18.5% midday Friday. Optimism was driven by a rising market and falling interest rates, making investors excited about the market.

Despite some delivery setbacks in the industry, Lucid had a more positive outlook, with production and deliveries exceeding last year’s figures sharply. However, concerns remain about EV demand, especially in the high-end market where profits are challenging.

Interest rates played a significant role in boosting EV stocks this week, with expectations for the Federal Reserve to cut rates later this year. Lower rates can aid auto companies in offering financing at lower rates, potentially boosting sales in 2024.

Tesla’s delay of a robotaxi event put a damper on the EV market, ending the week on a sour note. The delay could impact high expectations for the industry, given Tesla’s influence on EV stock performance recently.

Investors considering Rivian Automotive should note that while the stock is performing well, it wasn’t on the Motley Fool’s list of top 10 stocks to buy now. Stock Advisor offers guidance on building a successful portfolio with potential for significant returns over time.



Read more at Nasdaq: EV Stocks Roar Back to Life This Week