Electric cars

Why Nasdaq EV stocks were all over the map on Friday

Why Nasdaq EV stocks were all over the map on Friday

After a sharp drop in the first quarter of 2022, investors in the Nasdaq Compound ( ^IXIC 0.29% ) had hoped to see a nice rebound to start the month of April. It took a while, but as the market closed, the Nasdaq finished up 41 points at 14,262.

The electric vehicle space has been among the most turbulent in recent years, but long-term investors have seen big gains from You’re here (TSLA 0.65% ) and his new peers. Friday, however, Electric vehicle stocks did not all rise at the same rate. Rivian Automotive ( RIVN -7.56% ) suffered losses, while Tesla was little changed and shares of Li-Auto ( LI 5.54% ) moved significantly higher. Let’s take a closer look at everything happening in the EV space on Friday.

March results from Li and his Chinese peers

Li Auto saw its stock climb almost 6% on Friday. The company released its latest delivery figures, continuing its strong bullish momentum.

Li delivered 11,034 of its Li ONE electric vehicle models in March, up 125% from the same month in 2021. The demonstration brought Li’s quarterly delivery total to 31,716. That’s up from more than 150% compared to the first quarter of last year. Li hopes to accelerate its growth with the April release of its L9 SUV model, which will bring a new luxury experience that also incorporates driver assistance.

However, even these high numbers were not enough to stay ahead of competitors. XPeng ( XPEV 5.80% ) delivered more than 15,400 vehicles in March, tripling its number from the previous year, and surpassed Li in quarterly deliveries of more than 2,800. On the other hand, Li managed to better Nio ( NI 4.18% )which delivered less than 10,000 electric vehicles for the month and around 25,750 for the quarter.

Li and his Chinese peers could face pressure if the current COVID-19 outbreak in the country continues. For now, however, demand for EVs has never been higher.

Image source: Getty Images.

Rivian faces more pressure

However, shares of Rivian Automotive fell more than 7.5% on Friday. The move returned much of the gain the hope of an electric truck had recovered earlier this week.

High costs have proven to be a problem for the auto industry in general, and while established automakers have been able to withstand cost increases to some degree, new entrants like Rivian have yet to establish their power to pricing. In its annual report released on Thursday, Rivian noted that the war in Ukraine has adversely affected its ability to obtain vehicle components and to continue building production facilities and installing necessary equipment. The metals needed to make the batteries have also been difficult to obtain.

Help might be coming, though. The White House is expected to issue an executive order that would encourage the production of metals and other materials needed for batteries, in hopes of reducing the costs that EV companies must pay to foreign suppliers.

Nonetheless, now is a critical moment for Rivian as it aims to move forward with its long-term strategy. Until investors have more certainty about next steps, Rivian shares are likely to remain volatile and won’t necessarily follow Li Auto shares and other electric vehicle stocks.

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