Why shares of Rivian, Nio, and Fisker rose in December

Electric vehicle stocks, which offer gifts to investors during the holiday season, accelerated to the 2023 finish line, closing noticeably higher than they did in late November. From encouraging delivery figures to new partnerships, there were a variety of factors that attracted investors. Rivian (RIVN -4.04%), Nio (no -2.71%)and fisker (FSR -2.01%) in their portfolio.

Shares of Rivian surged 40%, while Nio and Fisker rose 25% and 11%, respectively, according to data provided by S&P Global Market Intelligence.

Various factors influencing the market’s enthusiastic supply of these EV names.

In early December, Rivian shares soared on news that the company was preparing to manufacture battery packs that are more simplified than the current standard battery pack structures. This new battery pack structure could save costs and lower the price of the company’s R1 vehicle. This is a development that will make the company’s products available to a wider audience. Additionally, Rivian CFO Claire McDonough commented on the company’s finances. barclays‘ At the 2023 Global Automotive and Mobility Technology Conference, the company said it expects to achieve profitability on a gross margin basis in 2024. Additional food for the buying frenzy came a few days later when Rivian announced a new deal. AT&T This will allow the telecom company to power its fleet with Rivian’s delivery vans and R1 vehicles from early 2024.

After being flat in the first few weeks of December, Nio shares surged on December 18 after Cyvn Holdings, an Abu Dhabi-based investment group focused on innovative transportation, announced it would make a $2.2 billion equity investment in Nio. I did. Acquire 294 million shares at a purchase price of $7.50 per share. Nio subsequently reported on December 27 that it had closed its deal with Cyvn Holdings.

For Fisker, the catalyst for the stock’s rise last month was a Dec. 29 update on the company’s 2023 vehicle production. The stock rallied more than 4% from late November until the close of trading on December 28, but the company’s business update on the 29th caused investors to change direction. The company reported that its fourth quarter 2023 shipments increased more than 300% quarter over quarter. Celebrating the news, investors sent the stock up 16% that day, and the stock held strong for the remainder of December.

It might still be a good time to bolster your holdings with one of these EV stocks.

During the first week of 2024, Rivian’s stock gave back some of the gains it had made since December after investors learned that the company’s fourth-quarter 2023 deliveries were down from the previous quarter. While this is disconcerting news, the drop in deliveries itself should not deter investors considering buying Rivian’s stock. However, they should definitely keep their risk tolerance in mind before choosing to buy stocks.

Nio also lost ground in early 2024. Investors were unimpressed by the company’s report Monday, which said the company saw a 31% increase in deliveries in 2023 compared to 2022. Goldman socks We assigned an $8.40 price target to Nio stock this week, suggesting the stock has nominal upside. For a number of reasons, investors may want to think twice before adding Nio to their buy lists.

Likewise, Fisker stock has performed poorly this week. However, unlike Rivian, investors may want to be more cautious about Fisker stock because there are issues related to the company’s current situation.