What happened

Electric vehicle (EV) stocks are jumping today as investors take in bits of news. Tesla (TSLA -1.92%) shares jumped by as much as 6% and were holding onto a gain of 3.6% as of 11:50 a.m. ET. Fellow U.S.-based EV makers Rivian Automotive (RIVN -2.27%) and Lucid Group (LCID 0.41%) also surged in early trading. As of 11:50, Rivian was higher by 3% and Lucid by 9.3%. Lucid shares have jumped nearly 20% in the last five trading days after being one of the worst-performing stocks in 2022.

So what

Lucid and Rivian both dropped more than 80% in 2022. Investors are likely thinking they have fallen far enough and reports today on changes in Rivian management have brought optimism that the company is addressing some of the issues that plagued its performance last year. 

Tesla stock also had a rough year in 2022, but the company continues to plan its growth as it aims to fend off new competition. That growth includes plans to spend more than $775 million to expand its manufacturing facility in Texas, according to published reports. That planned investment is especially encouraging for investors. 

Now what

Tesla is still ramping up its plant near Austin, and the new investment plans show it is also thinking further ahead. Investors have recently been concerned about slowing demand for Teslas and other EVs, but according to a Barron's report that cited documents filed with the Texas state department of licensing, Tesla is planning to add production capacity to the existing 500,000-vehicle annual capacity. That facility is expected to produce the Cybertruck that Tesla said should begin production sometime in 2023. 

There was also news accompanying the report that Tesla is close to finalizing an agreement to build an entirely new manufacturing plant in Indonesia. That plant could help the company grow business in Asia, Africa, and the Middle East. Lucid already has plans for its own facility in Saudi Arabia to serve the Middle East market. While adding competition from Tesla could be thought of as a negative development, it is a good sign that there is enough market growth expected for the EV leader to target that market, too.

Investors have been concerned about the size of the global market and how quickly EVs will gain automotive market share. But supply chain issues have been a more pressing problem for all of these automakers. Tesla CEO Elon Musk previously said the ramp-up for the Texas plant as well as the new facility in Germany had been slowed by supply chain problems.

The Rivan news today was that it confirmed it is replacing several executives, including its vice president in charge of parts purchasing. Investors are apparenlty happy to see that the start-up is attempting to address its areas of weakness. But maybe more importantly for EV investors today is the confidence Tesla is showing with investments for long-term growth.