Tesla Stock Is Rising After a Wild Day for EV Makers
Tesla snapped a four-day losing streak on Monday, rising along with most electric-vehicle stocks in a wild day for the sector.
shares gained 2%, closing at $171.89 while the
ended down slightly.
Most electric-vehicle stocks gained, led by shares of
which added almost 52%. Determining exactly why VinFast stock made that massive jump isn’t easy. Several meme-like stocks made big moves.
and
shares rose about 74% and 78%, respectively.
VinFast,
GameStop
,
and AMC shares are all heavily shorted, meaning a significant portion of their shares available for trading has been borrowed and sold by bearish investors betting on stock price declines. Heavily shorted shares can be more volatile and prone to gains that feed on themselves as short sellers rush to cover their bets.
stock’s strong start may also have helped shares of other EV makers. The Chinese EV maker rose 35% on Friday in its first day of trading and it gained another 2.8% on Monday.
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Shares of Chinese EV peers
and
gained 6.7% and 4.7%, respectively. Shares of U.S. EV start-ups
and
gained 9.1% and 5.6%, respectively.
stock, which no longer trades on an exchange, rose 11.4% to almost 4 cents a share. Fisker needs cash to continue operating. The company announced Monday it secured a $3.5 million loan on Friday that it will use to pay operating expenses. The loan matures in June 2024.
It will be tough for the volatility Tuesday to match Monday’s. President Biden might formally announce more tariffs on Chinese-made EVs. That should do something to EV shares.
Tesla stock was up 0.3% to $172.37 in premarket trading, while S&P 500 and
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futures each rose less than 0.1%.
Write to Al Root at allen.root@dowjones.com
