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.
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Faraday Future, ChargePoint and Nio lead big day for auto stocks