Tesla stock leads big rally in electric vehicle sector
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The electric vehicle sector ripped strong gains on Monday led by a pop in Tesla (NASDAQ:TSLA) of 7.55%.
The rally is being tied to general market optimism over the economic re-opening in China. Ahead of Thursday's consumer price report, there is also growing confidence that interest rate hikes from the Federal Reserve are leading to a moderation of inflation and that the terminal rate could be in sight.
Notable gainers in morning trading included TuSImple (TSP) +14.88%, ChargePoint Holdings (CHPT) +12.15%, Volta Inc. (VLTA) +11.05%, Luminar Technologies (LAZR) +10.65%, Aeva Technologies (AEVA) +10.60%, Wallbox (WBX) +10.15%, AEye (LIDR) +8.99%, Ouster (OUST) +8.33%, and QuantumScape (QS) +8.15%. Those stocks are all trying to recover from losses in 2022.
Chinese EV stocks Nio (NIO) +5.20%, XPeng (XPEV) +1.65%, and Li Auto (LI) +4.77% were all higher as well on Monday.
The rally in electric vehicle stocks runs up against some investor concerns that demand from buyers in 2023 will be below initial expectations.