After a big drop in the first quarter of 2022, investors in the Nasdaq Composite (^IXIC 2.03%) had hoped to see a nice bounce to start the month of April. It took some doing, but by the market close, the Nasdaq finished up 41 points to 14,262.
The electric vehicle space has been among the most turbulent in recent years, but long-term investors have seen big gains from the likes of Tesla (TSLA 0.31%) and its newer peers. On Friday, though, EV stocks didn't all rise in lockstep. Rivian Automotive (RIVN 3.87%) suffered losses, while Tesla was little changed and shares of Li Auto (LI 6.65%) moved significantly higher. Let's take a closer look at everything going on in the EV space on Friday.
March results from Li and its Chinese peers
Li Auto saw its stock rise almost 6% on Friday. The company reported its latest delivery figures, continuing its strong upward momentum.
Li delivered 11,034 of its Li ONE model EVs in March, up 125% from the same month in 2021. That showing brought Li's total quarterly deliveries to 31,716. That's up more than 150% from the first quarter of last year. Li hopes to accelerate its growth with the April release of its L9 SUV model, which will bring a new luxury experience that also incorporates driver assistance.
However, even those strong numbers weren't enough to stay ahead of competitors. XPeng (XPEV 10.66%) delivered more than 15,400 vehicles in March, tripling its year-earlier count, and outpaced Li in quarterly deliveries by more than 2,800. On the other hand, Li did managed to best Nio (NIO 9.08%), which delivered fewer than 10,000 EVs for the month and roughly 25,750 for the quarter.
Li and its Chinese peers could face pressure if the nation's current COVID-19 outbreak continues. For now, though, EV demand has never been higher.
Image source: Getty Images.
Rivian deals with more pressure
However, Rivian Automotive shares were down more than 7.5% on Friday. The move gave back much of the gain the electric truck hopeful had clawed back earlier this week.
High costs have proven to be a problem for the automotive industry generally, and while established automakers have been able to pass through cost increases to some extent, upstarts like Rivian haven't established their pricing power yet. In its annual report released on Thursday, Rivian noted that the war in Ukraine has hurt its ability to get vehicle components and to continue construction of production facilities and installation of necessary equipment. Metals necessary for battery manufacturing have also been problematic to obtain.
Help might be coming, though. The White House is expected to issue an executive order that would encourage the production of metals and other materials needed for batteries, in the hopes of reducing costs that EV companies have to pay foreign suppliers.
Nevertheless, now is a critical time for Rivian as it aims to move forward with its long-term strategy. Until investors have more certainty about next steps, Rivian's stock is likely to remain volatile and not necessarily move in line with Li Auto and other EV stocks.
