The stocks of several companies in the electric-vehicle (EV) sector are surging today, but for different reasons. Shares of Nikola (NASDAQ:NKLA) jumped 19% earlier, and remain up 16% as of 12:30 p.m. EST. Shares in Chinese electric-car maker Kandi Technologies (NASDAQ:KNDI) are up 20%, while those of Canadian three-wheel urban-use EV manufacturer ElectraMeccanica Vehicles (NASDAQ:SOLO) are settling up 10% after a 14% jump earlier.
EV stocks have been on the rise recently, and some of today's move is a continuation of that wave of investor interest. But each of the above names has a different story to tell today, too.
ElectraMeccanica may be the least well known of the three companies. Its flagship product is a single-seat, three-wheeled EV called the SOLO, made for urban use, and frankly, fun. Shares have doubled since it reported earnings last week.
Even after the 100% weekly gain, the small-cap company still has a market capitalization of just $550 million.
Nikola's move today is mainly from rumors about its proposed partnership with General Motors (NYSE:GM). While GM and Nikola have both said there is nothing new to report about finalizing a deal, there was reportedly a posting on the GM website earlier saying a deal has been done. That posting has since been removed, however.
The jump in Kandi's shares follows a double-digit gain yesterday, after it was reported that the company's offerings qualify for a $2,500 state tax rebate for purchases of renewable energy-powered automobiles in Texas. Kandi America, the U.S. subsidiary of China-based Kandi, is headquartered in Garland, Texas.
Kandi is also likely benefiting from news of EV sales growth in China. Competitors including NIO (NYSE:NIO), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) have all recently reported quarterly results showing record deliveries. XPeng, for example, reported a 266% year-over-year jump in vehicle deliveries for its third quarter, and more than double what it delivered in the previous quarter.
Now that Kandi has launched its U.S. operations, it will look to expand its sales through its dealer partners throughout the country. So the rebate news from Texas could have a meaningful impact on the company.
Nikola and ElectraMeccanica don't yet have meaningful production. But both have aspirations that have attracted investor interest. Production of the SOLO EV is just beginning, and ElectraMeccanica said it will announce the site selection for a new assembly facility and engineering technical center in either Arizona or Tennessee at the end of this month.
Nikola has been in the news often since a short-seller report called the company an "intricate fraud" in September just after it had announced an agreement with GM. Investors are watching for the closing of a deal with GM now as a verification of legitimacy for the company.
All three of these EV companies have their own storylines. But the stocks are also all benefiting from an increase in general interest in the sector.