Tesla stock leads big rally in electric vehicle sector

The electric vehicle sector ripped strong gains on Monday led by a pop in Tesla (NASDAQ:TSLA) of 7.55%.

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The rally is being tied to general market optimism over the economic re-opening in China. Ahead of Thursday’s consumer price report, there is also growing confidence that interest rate hikes from the Federal Reserve are leading to a moderation of inflation and that the terminal rate could be in sight.

Notable gainers in morning trading included TuSImple (TSP) +14.88%, ChargePoint Holdings (CHPT) +12.15%, Volta Inc. (VLTA) +11.05%, Luminar Technologies (LAZR) +10.65%, Aeva Technologies (AEVA) +10.60%, Wallbox (WBX) +10.15%, AEye (LIDR) +8.99%, Ouster (OUST) +8.33%, and QuantumScape (QS) +8.15%. Those stocks are all trying to recover from losses in 2022.

Chinese EV stocks Nio (NIO) +5.20%, XPeng (XPEV) +1.65%, and Li Auto (LI) +4.77% were all higher as well on Monday.

The rally in electric vehicle stocks runs up against some investor concerns that demand from buyers in 2023 will be below initial expectations.

Now read: Luminar Technologies: No Respect

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