Published -June 15th, 2023 @ 12:30 PM (GMT+2 )
The recent bull market has seen a particularly strong performance from tech stocks, especially those within the sectors of artificial intelligence and electric vehicles (EVs). Investors' enthusiasm has propelled this surge and is continuing as we approach the end of the month, the quarter, and the first half of the year.
Tesla's Market Cap Soars Amidst Rally
Tesla (NASDAQ:TSLA), a pioneer in the EV market, has seen its market cap shoot past $800 billion as its stock more than doubled this year. After enjoying 13 consecutive trading sessions of growth, however, the stock closed slightly lower by 74% on a recent Wednesday.
Analysts view Tesla more as an AI company than a traditional automaker, and recent partnerships with General Motors (NYSE:GM) and Ford (NYSE:F) for electric charging solutions have further buoyed Tesla's performance.
Federal Reserve and Chinese Central Bank Actions Fuel Rally
Market expectations of the Federal Reserve pausing its aggressive rate hikes have contributed to the EV rally. This comes in response to data suggesting a cooling of inflation rates.
Chinese EV maker XPeng (NYSE:XPEV) has seen its stock rise by over 25% within four days, while shares of rival Nio (NYSE:NIO) have traded about 14% higher during the same period. This follows the Chinese central bank's announcement of a cut to its short-term borrowing rate to stimulate the economy.
Nikola Shares Witness Upward Swing
Speculative names in the EV market, such as Nikola (NASDAQ:NKLA), have also been gaining. Nikola, a maker of battery and hydrogen powered electric trucks, saw its shares rise by more than 20% in a single session, with a total increase of around 70% over four days. This comes after the stock hit an all-time low of $0.52/share on June 6.
High-Potential EV Stocks: Nio, Fisker, and BYD
Despite facing production challenges, Chinese EV manufacturer Nio (NIO) has been steadily overcoming obstacles and is set to continue its success. Nio's growth revolves around its extensive network of battery-swapping stations and continuous innovation, including launching new models boasting impressive long-range capabilities.
The company's shares have fallen by 62% over the past year but are poised for a rally.
Fisker (NYSE:FSR) has been generating investor anticipation with its upcoming Fisker Ocean Extreme. The company reported a loss in Q1 but is exploring partnerships to scale production. Despite a 35% decline in its stock over the past year, Fisker shows potential for a profitable rally.
Toyota's Breakthrough Sparks EV Stock Surge
In a surprising turn of events, recent market gains have been driven by an electric vehicle (EV) stock that has so far trailed behind in the industry:
Toyota Motor (NYSE:TM).
However, with recent technological breakthroughs, Toyota may have just made a significant advancement in their EV initiatives – a development that has delighted its shareholders.
Toyota's shares experienced a 6% surge on Tuesday and saw a further rise in the premarket session on Wednesday morning, with an additional 5% increase. This surge followed announcements about new EV technology that have sparked optimism that the Japan-based auto manufacturer will not be left in the dust during the transition to electric vehicles.
Lastly, BYD Co. (BYDDF), the leading EV manufacturer in China, is set to benefit from the growing global demand for EV batteries. Despite an 18% decline over the past 12 months, BYD's ambitious expansion plans and record-breaking Q1 performance make it a strong contender in the EV market.
Click here to find our more about recent developments of Toyota and XPeng
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