A wide range of electric vehicle (EV) stocks are gaining today as the broad stock rally continues. Specifically, speculators seem to see a green light on Tuesday.
Whether it be Rivian (NASDAQ:BANK), Lucid (NASDAQ:LCID), Lordstown Engines (NASDAQ:TO DRIVE), QuantumScape (NYSE:QS), A workhorse (NASDAQ:WKHS) Where Fisker (NYSE:FSR), investors are crowding into electric vehicle stocks in droves right now. These high-growth names are among the companies that many growth-oriented investors continue to focus on. Indeed, it is for a good reason. The global electric vehicle market is expected to continue to swell as the world shifts towards electrification.
Perhaps this strong secular tailwind is reason enough for investors to buy these stocks in droves. Indeed, today’s price action is unfolding with few catalysts behind these leading EV stocks.
With that said, let’s take a look at some of the key factors that could drive this sector higher right now.
Why are electric vehicle stocks rising today?
Notably, today’s price action with EV stocks is taking place against a solid backdrop. All major indexes rose significantly today. Leading the pack is heavy tech Nasdaqwhich is appreciating again by more than 1.5% today.
Most of these top EV stocks are on the Nasdaq, for good reason. These companies are often viewed more as tech stocks than automakers. With improved battery technology (hello, QuantumScape), the hope is that electric vehicles will become ubiquitous in the marketplace in no time.
Speaking of QuantumScape, this battery maker has some exciting news to report. Today, various reports cited QuantumScape’s partnership with Porsche. This news certainly comes as no surprise to many investors, given the previous $300 million investment in QuantumScape made by Porsche’s parent company. volkswagen (OTCMKTS:VWAGY).
Additionally, it looks like there is some very straightforward downside buying among EV stocks today. Companies like Rivian have seen their stock prices crash in recent months. As a result, many seem to believe these stocks are too cheap to ignore.
I think the next few months could be decisive for stocks of electric vehicles. Investors looking for momentum have found it in the electric vehicle sector. Which direction the momentum will move in the medium term is the key question right now.
As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.