What happened
It was a "rising tide lifts all boats," situation for numerous electric vehicle (EV) stocks on Tuesday. Very encouraging sales figures from an ostensibly struggling big economy overseas revved investor interest in the sector higher.
One beneficiary was specialty manufacturer Canoo (GOEV 2.59%), which saw its share price grow by almost 1% across the course of the trading day.
So what
The big boat, or rather car, leading the bull motorcade was perennial No. 1 Tesla.
The China Passenger Car Association reported that the bellwether EV maker sold 84,159 of its domestically produced cars in the massive Asian country in August. That was a robust 9% higher than the same month of 2022.
Granted, the company's aggressive price cuts played a pivotal role in the increase. Nevertheless, 9% is quite an impressive number, particularly given that China's economy has been struggling for some time.
A notable rise in product sales is atypical in such an environment, and that goes double for high-priced items such as EVs -- popular ones like Tesla's Model 3s and Model Ys are still expensive, even after the company's price chops.
Now what
Canoo does not have a factory in China, so it's not enjoying the kind of surge reported with Tesla. But zooming out on the scene, it's yet another indication that demand for current-generation EVs remains very strong throughout the world. If a beaten-down economy like China's can see demand for pricey passenger cars, surely there's a promising market awaiting a utility vehicle maker such as Canoo.
