GOEV - Why Tesla and Other EV Stocks Rocketed Higher in July
July was a good month for the stock market in general, with the S&P 500 index jumping over 9%. But some electric vehicle (EV) stocks significantly outpaced that gain. Shares of sector leader Tesla (NASDAQ: TSLA) jumped 32.4% during the month, while the stocks of start-ups Lordstown Motors (NASDAQ: RIDE) and Canoo (NASDAQ: GOEV) soared 41.8% and 87%, respectively, according to data provided by S&P Global Market Intelligence .
Tesla shares have now increased more than 45% since late May. The jump in the month of July came as Tesla reported second-quarter earnings that showed the company was resilient even in the face of several headwinds. Its second-quarter revenue increased 42% year over year, but was lower than the two previous quarterly sales results. Considering supply chain issues that most global automakers are also facing, as well as COVID-19-related production delays and sales impacts from lockdowns in China, the results were received positively.
These challenges also come as Tesla works to ramp up production at its two new factories in Texas and Germany. CEO Elon Musk had recently said those plants were burning cash, but Tesla still generated free cash flow of $621 million in the second quarter. That helped put some concerns to rest, and it was also taken as positive news for Tesla competitors.
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Why Tesla and Other EV Stocks Rocketed Higher in July