Electric vehicle stocks rallied due to positive inflation report easing concerns about interest rates

From Nasdaq: 2025-01-15 14:22:24

Electric vehicle stocks, including Tesla, Rivian, and Aehr Test Systems, saw a rally on Wednesday due to an important inflation report. The CPI came in slightly hotter than expected, but core CPI figures cooled more than anticipated. This data eased concerns about interest rates affecting EV demand and stock prices.

The recent fears of inflation reacceleration post-Fed meeting were alleviated by cooler “core” CPI numbers. Long-term Treasury rates rose after the meeting, but today’s data provided relief. Tesla, Rivian, and Aehr Test Systems had all experienced recent sell-offs, making today’s rally particularly significant.

Aehr Test Systems reported disappointing earnings, missing revenue and earnings expectations, leading to a more than 25% stock drop. Despite efforts to diversify, the downturn in EVs is impacting the majority of its existing business. The company’s CEO noted challenges in silicon carbide investment outside of China in 2025.

It’s uncertain if the CPI report marks the end of the downturn for EV stocks, but it’s a positive data point. While EV demand may not solely depend on interest rates, factors like range anxiety and potential policy changes could impact the sector. Investors may want to focus on high-quality, profitable players in the EV supply chain.



Read more at Nasdaq: Why Electric Vehicle Stocks Tesla, Rivian, and Aehr Test Systems Rallied Today