TEN - Faraday Future ChargePoint and Nio lead big day for auto stocks

Automobile stocks revved higher on Thursday after indications from China were that measures to stoke demand for both new and used cars will be put in place and EV subsidies/tax breaks will be extended.

The biggest gainers in the electric vehicle sector in early trading on Thursday were Faraday Future Intelligent Electric ( NASDAQ: FFIE ) +33.59% , Nio ( NIO ) +10.03% , Ouster ( OUST ) +7.99% , XPeng ( XPEV ) +7.95% , Electrameccanica Vehicles ( SOLO ) +7.35% , ChargePoint Holdings ( CHPT ) +7.31% , TuSimple ( TSP ) +7.23% and Canoo ( GOEV ) +6.31% .

Tesla ( TSLA ) was also solidly higher with a 3.97% gain.

Detroit majors General Motors ( GM ) +2.73% and Ford Motor Company ( F ) +3.39% were also higher and outperforming the broad market.

The boost in confidence in the auto sector includes many supplier stocks after Jefferies made the case that a recovery may be setting up.

"The risk/reward for auto suppliers do not look great heading into second-quarter earnings, but many companies are expected to reiterate their guidance for the year," noted RBC analyst Joseph Spak. He also said a key catalyst for suppliers could be the updates on production in the July/August/September time frame, which could be extrapolated to have more confidence in stronger 2023 production.

Auto supplier stocks on the move included Tenneco ( TEN ) +10.98% , Visteon ( VC ) +6.97% , and Goodyear Tire & Rubber ( GT ) + 4.55% .

Read more about Beijing's support for the auto industry.

For further details see: