EV stocks surge amid risk-on rally, positive signs from Tesla
Marcus Lindstrom

Along with regional banks, EV stocks were among the sectors marking the sharpest rebound on Tuesday.

According to retail sales data from China Merchants Bank International, Tesla (NASDAQ:TSLA) is expected to report especially strong Q1 sales. That signal appears to contradict slowing demand warnings that have led to factory pauses by both Tesla (TSLA) and its chief rival BYD Company (OTCPK:BYDDY) +1.67% in recent weeks. 

Tesla (TSLA) +5.9% shares were also boosted by Moody's Investors Serviceâs move to upgrade the Austin-based automakerâs credit rating to Baa3 from a prior Junk status. 
Morgan Stanley analyst Adam Jonas added to optimism on the space by advising that Rivian Automotive is a long-term Buy. Rivian Automotive (RIVN) +4.34% shares gained sharply in afternoon trading on Tuesday,
The positive news flow from both Tesla and Rivian added to a broader market rebound amid hopes of a potential Fed pause that appeared to lift many boats across the EV space. Canoo (GOEV) +9.31%, Lucid Group (LCID) +6.31%, Lordstown Motors (RIDE) +5.38%, and Fisker (FSR) +2.34% all gained alongside Tesla on Tuesday, as did Chinese EV giants Nio (NIO) +5.66%, Xpeng (XPEV) +8.52%, and Li Auto (LI) +2.63%. 
The risk on rally also lifted major automakers like General Motors (GM) +4.46%, Ford (F) +4.74%, and Stellantis (STLA) +2.38%.
Read more on the broader market upswing on Tuesday.