Reports of the demise of electric vehicle (EV) stocks have been greatly exaggerated, with the latest EV stock rally proving that. Massive gains were seen throughout the industry, including from small names like Faraday Future (NASDAQ:FFIE), Chinese makers like Nio (NASDAQ:NIO), and even big players like Tesla (NASDAQ:TSLA).
What prompted this ongoing rally in the electric vehicle market? One major factor was Tesla itself, which will bring out an earnings report later this week. Reports suggest it’s doing reasonably well at the current trial of its founder, Elon Musk. Beyond Tesla, there’s also new interest in the EV infrastructure sector, and positive developments over China’s Zero-COVID policy aren’t hurting matters either.
There’s even new expansion going on in the field. Nikola (NASDAQ:NKLA) landed a purchase order from GP Joule for 100 new vehicles, though it will take until 2025 before they’re all delivered. There was even a freshly-minted Buy rating for Lucid Group (NASDAQ:LCID) from Citigroup (NYSE:C). Analyst Itay Michaeli noted that Lucid has solid technology and is moving to make more of it, like with its Air model. In addition, its pricing strategy is sound, and its gross margin outlook is great.
Overall, analyst consensus calls both Tesla and Nio stock Moderate Buys. Tesla’s average price target of $187.32 gives it an upside potential of 30.04%. However, Nio’s average price target of $16.62 gives it an upside potential of 37.64%.
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