CHPT - Why (Most) EV Stocks Had a Phenomenal Day Today
2024-01-22 15:22:09 ET
Despite plenty of positive headlines, many electric vehicle companies are struggling to make vehicles at scale and survive in 2024. One of the companies in survival mode is Fisker , which announced Monday that it had reached an agreement with its debtholders to reduce debt in exchange for equity in the company. This may seem like a small victory, but it does show that investors are still willing to give companies a runway to go after a slice of the EV market.
The reaction among investors in other players elsewhere in the EV sector was mixed. Li Auto (NASDAQ: LI) fell by as much as 6.4% because a competitor was propped up for the time being. But solid-state battery maker QuantumScape (NYSE: QS) jumped 7.6% and EV charging station network operator ChargePoint (NYSE: CHPT) rose 17.2% in early trading on Monday. Shares of those stocks were down 3.2%, up 3.2%, and up 9.8%, respectively, as of 2 p.m. ET.
Fisker got a waiver from its debtholders on financial covenants and was able to reduce $510 million in debt to $324.5 million in exchange for 159.1 million shares of stock.
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Why (Most) EV Stocks Had a Phenomenal Day Today