What happened

The broader stock market indexes outperformed the technology-filled Nasdaq Composite index last month with many early-stage tech companies underperforming even that index. That included electric vehicle (EV) charging network company ChargePoint Holdings (CHPT -3.72%) as well as EV makers Polestar Automotive Holding (PSNY -4.84%) and Faraday Future Intelligent Electric (FFIE -8.62%). 

ChargePoint only dropped 5.3% in October, but shares of Polestar and Faraday Future lost 11.9% and 15.1%, respectively, according to data provided by S&P Global Market Intelligence.

So what

The underperformance was more the result of general market sentiment than any business-specific news from these three companies. These stocks are all very speculative, but last month's drops might have provided investors a better price if anyone is looking to add these risky holdings to a portfolio. 

In a weakening economic environment and sharply rising interest-rate cycle, investors preferred moving money into more-stable businesses and sectors last month. The Dow Jones Industrial Average soared almost 14% in October, marking its best month since 1976. That was in stark contrast to the tech-heavy Nasdaq Composite, which moved up about 4%. But these EV companies kept working on growing their businesses. ChargePoint and Polestar are much better positioned than Faraday Future, however, which helps explain the latter's more-significant decline. 

Now what

As of Aug. 26, Faraday was down to less than $50 million in cash and was still spending money to reach its initial vehicle production, planned for the fourth quarter. The company also named a new chief accounting officer and replaced its interim chief financial officer last month.

It has successfully worked to raise additional funds, however, and believes it has the needed capital to begin production and deliveries of its high performance FF 91. Faraday isn't out of the woods yet, though, as execution risks remain. 

ChargePoint and Polestar both have revenue coming in already. ChargePoint expects to double its fiscal-year revenue versus last year to as much as $500 million. Polestar -- which is jointly owned by Volvo and that automaker's Chinese parent company, Geely -- already has about 70,000 electric cars on the road, and remains on track to report 2022 production of 50,000 units. 

Polestar also just announced the launch of its first SUV, the Polestar 3, which will be manufactured in Europe and at a Volvo factory in South Carolina. It will run software from that Volvo car division, which also just provided half of a new $1.6 billion round of financing to Polestar. That investment in the form of a loan could later be converted to an equity position as well. 

Investors who want to take advantage of the lower share prices should research these companies further. But until Faraday Future successfully launches its first vehicle and proves it can execute, that stock is more of a lottery ticket than an investment. ChargePoint and Polestar are also risky investments at this point, but could be worth further looks for a portion of a portfolio.