Shares of stocks in the automotive sector were rising today, likely in response to the broader market's gains. The S&P 500 was up by 2.7% and the Nasdaq Composite had gained 2.9% by midafternoon.
The positive market sentiment likely helped raise the share prices of the electric vehicle (EV) battery company QuantumScape (QS -3.72%) by 5.2%, pushed up the EV charging company ChargePoint (CHPT -0.52%) up by 8.8%, and helped General Motors (GM -0.38%) pop 8.2% as of 2:25 p.m. ET.
Additionally, strong vehicle deliveries in GM's third quarter were helping to contribute to the company's share price gains today. And solid vehicle deliveries from Rivian may have helped give QuantumScape and ChargePoint an additional boost.
Investors appeared optimistic about the market again today, following a huge sell-off last month. The S&P 500 fell 9.6% in September and investors may be thinking that some stocks have reached the bottom and that now is a good time to buy.
Time will tell whether or not that's the correct perspective, but for now, it's causing the share prices of many stocks to soar today.
GM's shares are likely gaining additional ground today after the company said yesterday that its third-quarter vehicle sales increased 24% from the year-ago quarter to 555,580 vehicles.
The company said its Chevrolet Bolt EV and Bolt EUV sales reached a combined record of 14,709, and added that vehicle demand is so high that it's increasing calendar-year production for global markets from an estimated 44,000 vehicles this year to more than 70,000 in 2023.
GM also noted that the company's available vehicle inventory was up nearly three times compared to the year-ago quarter, thanks to many COVID-19-related supply chain issues finally being resolved.
Strong demand for GM's vehicles, particularly its electric-powered ones, likely helped lift QuantumScape and ChargePoint today. Many stocks in the automotive sector often react to how others in the industry are doing and some investors are viewing GM's quarter as a positive sign for the broader automotive sector.
Additionally, QuantumScape and ChargePoint were likely rising following Rivian's strong EV sales numbers. Rivian said late yesterday that its vehicle production jumped 64% in the third quarter to 7,363 vehicles and that it's on track to match its guidance issued in March of building 25,000 EVs in 2022.
EV investors have been on the lookout for any positive news coming from electric vehicle makers right now and Rivian's solid vehicle deliveries likely proved to QuantumScape and ChargePoint investors that the EV market is alive and well.
Investors in the automotive sector should be happy with today's gains and they should certainly be pleased with some of the positive results coming from GM's latest quarter and the ongoing increase in consumer demand for EVs.
But today's share price gains don't mean these stocks are out of the woods just yet. With the Federal Reserve still focused on aggressive interest rate hikes to bring inflation down, there could be more pain ahead for automotive stocks.
At the very least, QuantumScape, ChargePoint, and GM investors should take all of the latest good news as proof that parts of the automotive sector are getting back to normal, despite the market's continued volatility.