Shares of electric-vehicle makers experienced a significant increase on Wednesday, defying the broader stock market’s weakness. Investors reacted positively to Volkswagen AG’s $700 million investment in China-based XPeng Inc. Additionally, a group of global automakers announced their collaboration to establish a high-powered charging network accessible to all electric vehicle (EV) owners. This news also had a positive impact on the shares of EV-charging companies.
XPeng Inc. led the surge, with its stock skyrocketing 26.9% during afternoon trading and putting it on track for an 11-month closing high. This surge followed Volkswagen’s announcement that it would acquire a 4.99% stake in XPeng as part of a cooperation agreement. The collaboration aims to develop two Volkswagen electric models tailored specifically for the Chinese EV market.
Other Chinese EV companies also experienced significant gains. Nio Inc.’s shares shot up 9.6% to reach a seven-month high, Li Auto Inc.’s shares climbed 3.2% to a one-year high, and BYD Co.’s stock rose 2% to an 11-month high.
Tesla Inc. (NASDAQ:TSLA), which generated 23% of its second-quarter revenue from China, deviated from the trend as its shares declined by 0.5%. Meanwhile, Rivian Automotive Inc.’s shares surged 6.4% to a seven-month high, and Nikola Corp.’s shares leapt 9.4% after a recent two-day downtrend. Fisker Inc. and Lion Electric Co. shares also rebounded after recent losses.
While the Nasdaq Composite Index fell 0.4% and the S&P 500 slipped 0.2%, the announcement of a joint venture by BMW Group, General Motors Co., Honda Motor Co., Hyundai Motor Co., Kia Corp., Mercedes-Benz Group AG, and Stellantis NV provided further support for the EV sector. The joint venture aims to create a charging network with at least 30,000 chargers accessible to all battery-powered vehicles, regardless of whether they utilize the North American Charging Standard or the Combined Charging Systems.
As a result, EV-charging companies such as ChargePoint Holdings Inc., EVgo Inc., and Blink Charging Co., experienced an increase in their stock prices.
