GM - EV stocks surge amid risk-on rally positive signs from Tesla

2023-03-21 12:53:07 ET

Along with regional banks, EV stocks were among the sectors marking the sharpest rebound on Tuesday.

According to retail sales data from China Merchants Bank International, Tesla ( NASDAQ: TSLA ) is expected to report especially strong Q1 sales. That signal appears to contradict slowing demand warnings that have led to factory pauses by both Tesla ( TSLA ) and its chief rival BYD Company ( OTCPK:BYDDY ) +1.67% in recent weeks.

Tesla ( TSLA ) +5.9% shares were also boosted by Moody's Investors Service’s move to upgrade the Austin-based automaker’s credit rating to Baa3 from a prior Junk status.

Morgan Stanley analyst Adam Jonas added to optimism on the space by advising that Rivian Automotive is a long-term Buy . Rivian Automotive ( RIVN ) +4.34% shares gained sharply in afternoon trading on Tuesday,

The positive news flow from both Tesla and Rivian added to a broader market rebound amid hopes of a potential Fed pause that appeared to lift many boats across the EV space. Canoo ( GOEV ) +9.31% , Lucid Group ( LCID ) +6.31% , Lordstown Motors ( RIDE ) +5.38% , and Fisker ( FSR ) +2.34% all gained alongside Tesla on Tuesday, as did Chinese EV giants Nio ( NIO ) +5.66% , Xpeng ( XPEV ) +8.52% , and Li Auto ( LI ) +2.63% .

The risk on rally also lifted major automakers like General Motors ( GM ) +4.46% , Ford ( F ) +4.74% , and Stellantis ( STLA ) +2.38% .

Read more on the broader market upswing on Tuesday .

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