What happened

Investors turned beaten-down electric vehicle (EV) manufacturers into some of Thursday's big winners on Wall Street. EV makers Lucid Group (LCID -2.29%), Fisker (FSRN), and heavy truck maker Hyzon Motors (HYZN 9.58%) soared to gains of between 15% and 18.5% at their session peaks. As of 2:30 p.m. ET, Lucid, Fisker, and Hyzon were still up by 11.5%, 9.2%, and 11.1%, respectively.

So what

Lucid reported its first-quarter results last week, and Thursday's rally can in part be attributed to the fact that a peer that released its results on Wednesday night mirrored what Lucid had to say about 2022 production levels. Specifically, as Lucid did last week, Rivian Automotive said it was maintaining its previous guidance for production even in the face of continued supply chain challenges. This seemed to spark a rally after EV stocks had been punished by investors worried that guidance would continue to be lowered, especially by younger manufacturers just starting to ramp up their vehicle production. 

silver Lucid Air electric sedan.

Image source: Lucid Group.

Now what

Lucid and other manufacturers that are just beginning to produce vehicles are struggling to get enough parts on one hand, and struggling with rising raw material costs on the other. The fact that Lucid, and now Rivian, feel confident enough to maintain their production guidance may have given investors a reason to stop relentlessly bidding down the prices of many electric vehicle stocks. 

Even with this bounce, Lucid shares are down nearly 60% year to date, and almost half of that drop came in just the past month. Neither Fisker nor Hyzon is bringing in meaningful revenue yet. Those stocks are down 27% and 36%, respectively, in the last month. 

Fisker plans to begin production of its first vehicle -- the Ocean SUV -- in November. On Thursday, however, it did release some news that might also be boosting investor interest in its stock. Fisker is using a contract manufacturing model, and said that its second vehicle model will be produced at a Foxconn factory in Ohio. The Fisker Pear looks to be a vehicle geared toward city driving, and the company says its unique platform will also be used for two additional models to be introduced at a later date. 

Fisker expects the Pear to be priced under $30,000, and plans to begin production of it in 2024. The company also shared that it expects a production volume of 250,000 units annually once operations are ramped up. 

 These stocks have been pummeled lately, so at this point, investors seem to be buying in something of a relief rally. If these EV companies expect their growth to remain on pace despite the well-known headwinds, there may be more room for investors to keep that rebound going.