Why Lucid, ChargePoint, and QuantumScape Are All Jumping Over 20% This Week
Electric vehicle (EV) stocks are soaring this week. A diverse mix of companies in the sector were all higher by more than 20% for the week, as of Thursday at 2 p.m. ET. EV maker Lucid Group (NASDAQ: LCID) was up by 30%, charging network company ChargePoint Holdings (NYSE: CHPT) was 24.1% above last Friday's closing price, and solid-state battery maker QuantumScape (NYSE: QS) was rising by 32.1% for the week, according to data provided by S&P Global Market Intelligence.
Many growth stocks were rising this week as investors anticipated -- and received -- tamer inflation data that spurred hopes that the Federal Reserve would slow, or pause, interest rate hikes. That helped these early-stage growth companies recover some of the big losses the stocks experienced in 2022.
Investors discount future potential earnings more when interest rates rise and borrowing costs are higher. All of these names will need to continue to invest capital as they build their businesses. But there was also some positive news in the underlying businesses that helped drive the share prices higher this week.
Source Fool.com
