Electric vehicle (EV) stocks got a decent boost on Friday thanks to good news from one of their more prominent players. That player was not North Star (NASDAQ:PSNY). Nevertheless, the somewhat under-the-radar EV maker benefited from the association. The shares ended the day up almost 11%, easily surpassing the 1.3% increase in the share price. S&P500 index.
The manufacturer with the happy news was a Polestar colleague Rivaans (NASDAQ: RIVN). The pickup and SUV specialist released its version on Friday production and delivery figures for both the fourth quarter of 2024 and the entire year.
Fortunately, quarterly results for both measures exceeded analyst consensus expectations. Perhaps more encouraging for investors and electric vehicle Supporters, Rivian added that a parts shortage that hampered production of certain models had been overcome.
These statistics come at a time of some concern for EV investors. While such vehicles remain popular, sales growth in the industry isn’t what it used to be, leading some to worry that their time will pass. A double whammy on two crucial metrics is exactly what is needed to restore bullishness.
Although the EV sector is large and still awash with capital, it is still relatively young compared to other sectors. So when one of their ilk reports encouraging news and sees a share price rise as a result, it tends to be repeated across the industry. Hence the double-digit gains from Rivian, Polestar and other peers on Friday.
But we have to be a little careful here. First, despite the fact that electric cars are becoming increasingly common today, there is still no certainty that they will ultimately become the dominant alternative fuel technology of the future. Second, the companies that make up the sector all operate under different conditions, often in different markets. For example, Polestar may not meet or exceed its internal targets as Rivian did.
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