Stock market investors have taken a lot of challenges in stride. Despite concerns about the regional banking system, inflation, and the potential for a recession, markets have held their ground. The Nasdaq Composite (^IXIC 1.59%) appeared likely to gain a bit more ground on Friday morning, as stock index futures showed a modest gain in premarket trading.

Making headlines Friday, Tesla (TSLA 1.89%) announced that it would boost prices once more on several of its electric vehicle (EV) models, answering concerns among some shareholders about keeping margin levels high. That news boosted Tesla's share price, but not nearly as much as a different stock in the EV sector gained Friday. Read on to hear more about Tesla and to discover the name of this little-followed industry peer.

Tesla makes more price adjustments

Shares of Tesla were up 2% in premarket trading. The automaker has had a number of things to report over the past 24 hours or so, and it has investors looking closely at Tesla stock.

Tesla increased prices modestly in the U.S. for several of its models. Although it left the popular Model 3 sedan's price unchanged, Tesla implemented $1,000 price increases for its legacy Model S sedan and Model X SUV. It also tweaked prices on its mass-market Model Y SUV, implementing a $250 boost.

2023 has been a volatile year for Tesla vehicle pricing worldwide. Several major price cuts led some investors to worry that demand was falling. In some markets, competition from other EV manufacturers has likely played a role in Tesla's pricing decisions.

However, Tesla shareholders were also pleased to learn that CEO Elon Musk has apparently found an executive to lead Twitter. In their view, that will free up Musk to pay more attention to Tesla, and they see that as a long-term positive for the EV stock.

Blue Bird is singing a pretty song

Another electric vehicle company with a lot less exposure than Tesla saw its stock gain a whole lot more ground early Friday. Blue Bird (BLBD 7.03%) isn't exactly a household name among EV investors, but its stock soared more than 28% in premarket trading Friday after it reported financial results for its fiscal second quarter, which ended April 1.

Blue Bird has concentrated its efforts on electric and low-emission school buses. That market is obviously much smaller than the passenger vehicle market, but it has the benefit of dealing directly with municipalities and local government entities that often are in a position to make large fleet purchases all at once. Moreover, many school districts have access to grants that help them with EV purchases, and that in turn makes Blue Bird's business more stable than it would be otherwise.

Blue Bird's results showed considerable improvement. Quarterly revenue came in just shy of $300 million, up 44% year over year. Bus sales enjoyed a boost both from the number of buses purchased and from a rise in their average sales price. Blue Bird sold more than 2,300 buses during the quarter, rising from 1,931 units in the year-ago period as supply chain constraints eased up enough to allow the company to increase production.

Profitability was also welcome news for Blue Bird shareholders. Adjusted net income of $8.6 million reversed a year-earlier loss of $10.1 million.

Blue Bird's future looks solid. The company has a backlog of nearly 5,800 buses, and it cited the Environmental Protection Agency's 2022 Clean School Bus Rebate Program for driving between 500 and 700 orders worth $200 million. As a result, Blue Bird boosted its annual sales projections to more than $1.1 billion as it makes progress toward its long-term goal of $2 billion in revenue and improved margin performance.

Blue Bird doesn't get as much attention as Tesla, but both companies are players in a fast-moving innovative industry. Investors should think about smaller players like Blue Bird as they go about learning more about EVs and their potential.