Stocks of many early-stage electric vehicle (EV) companies are on the move higher Thursday. Shares of China-based Nio (NYSE: NIO) and XPeng (NYSE: XPEV) were up 4.7% and 7.5%, respectively, as of 12:45 p.m. ET. After popping as much as 20%, the stock of U.S.-based Canoo (NASDAQ: GOEV) remained up 6.1% at that time.
Today's gain is a continuation of a recovery in these stocks over the last several months. Nio is up 60% over the last 90 days. XPeng and Canoo haven't surged as much, but it seems aggressive investors are moving back into some of the riskier EV sector stocks. For Nio and XPeng, that has come since virus-related lockdowns in China as well as tensions from U.S. House Speaker Nancy Pelosi's visit to Taiwan have eased.
July delivery results from both Nio and XPeng helped bring more optimism to investors. XPeng is growing at a faster pace than its rival right now. Both have now delivered about 220,000 electric vehicles since launching their first products. Since the start of 2022 through July, XPeng has increased its deliveries by 108%, while Nio shipments have grown by 22% year over year.
Canoo has had its own catalysts recently. Investors had almost given up hope of its survival after it reported a net loss of $125 million in the first quarter and was down to just $104.9 million in cash and cash equivalents as of March 31. Its market cap had dropped below $500 million from nearly $2 billion in early January.
But in July it announced an agreement with Walmart, with the retail giant planning to buy 4,500 of Canoo's electric lifestyle delivery vehicles (LDVs). Just two days later, Canoo said the U.S. Army agreed to take a vehicle "for analysis and demonstration." Investors hope this could potentially result in a future business relationship.
Plenty of risks remain for each of these EV companies. But they all have potential as well. Nio and XPeng have established manufacturing facilities and have shown demand exists for their products. Some investors with the right risk tolerance seem to be ready to put more money to work in all three today.
10 stocks we like better than Nio Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nio Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of July 27, 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.