What happened

It's been a week of big gains so far for some electric vehicle (EV) stocks. The stocks of battery manufacturer QuantumScape (QS -2.04%) and Chinese EV maker Nio (NIO -0.89%) have been soaring. As of Thursday afternoon, QuantumScape and Nio shares were higher for the week by about 19% and 29%, respectively, according to data provided by S&P Global Market Intelligence.

There were some laggards in the sector as well, though. EV start-up Canoo's (GOEV 0.17%) stock was lower by 14% at that point.

So what

Investors were rewarding some progress reported by QuantumScape this week. They also have renewed high hopes for Nio, with expectations of economic tailwinds, along with news of a surprise partnership between a Chinese EV peer and another global automaker. 

Nio shares moved consistently higher throughout the week, thanks to general macroeconomic news rather than anything specific announced by the company. The International Monetary Fund (IMF) raised its global GDP outlook and now sees global economic growth of 3% both this year and in 2024. That's higher than what the institution projected this past spring. 

While risks remain -- some particularly specific to China -- that's still good news for Nio as it expands its EV sales in Europe. The Chinese government is also attempting to head off a slowdown in growth. Concerns surrounding its economic recovery prompted officials there to acknowledge the need for added support that includes moves aimed at boosting investments and consumer spending. 

One new investment that likely made authorities happy was one between Nio's Chinese competitor XPeng and German automaker Volkswagen that was announced on Wednesday. Volkswagen is hoping to fast-track its entry into China's EV market, and the partnership brought instant added credibility to XPeng and its technology. 

Two new EVs will be jointly developed using XPeng's G9 SUV platform, with production scheduled to begin in 2026. And its connectivity and advanced driver-assistance system software will be used for the vehicles that will be sold under the Volkswagen brand in China. In return, Volkswagen will invest $700 million in XPeng with a 5% minority stake. That news likely had investors wondering if there could be a similar deal involving Nio in the future, helping to push shares even higher. 

For its part, QuantumScape updated investors with its second-quarter results, and it generated some excitement as the company inches closer to commercializing its solid-state battery technology. That technology holds promise, as it could provide a faster-charging, safer, and longer-lasting EV battery. That could be just the thing to evaporate range anxiety among many consumers on the fence about shifting to battery electric vehicles. 

Investors focused on one bit of news in QuantumScape's latest update. The company stated: "We are already working closely with a prospective launch customer in the automotive sector for this [commercial-level] cell, with the goal of bringing our next-generation technology to the electric vehicle market as rapidly as possible."

Now what

That type of progress is what investors speculating in still-unprofitable EV companies want to see. And that's something Canoo has yet to provide on any meaningful level. While the company has a production facility and several orders lined up for its specialty EV offerings, it hasn't yet begun production. And with cash and cash equivalents of just $6.7 million as of March 31, the company has had to focus on its financial position. 

That helps explain the discrepancy among EV sector stock returns this week. While start-ups are always risky and speculative, investors seem to be moving money to the companies that look to be making meaningful progress in the right direction.