Why (Most) EV Stocks Had a Phenomenal Day Today
Despite plenty of positive headlines, many electric vehicle companies are struggling to make vehicles at scale and survive in 2024. One of the companies in survival mode is Fisker, which announced Monday that it had reached an agreement with its debtholders to reduce debt in exchange for equity in the company. This may seem like a small victory, but it does show that investors are still willing to give companies a runway to go after a slice of the EV market.
The reaction among investors in other players elsewhere in the EV sector was mixed. Li Auto (NASDAQ: LI) fell by as much as 6.4% because a competitor was propped up for the time being. But solid-state battery maker QuantumScape (NYSE: QS) jumped 7.6% and EV charging station network operator ChargePoint (NYSE: CHPT) rose 17.2% in early trading on Monday. Shares of those stocks were down 3.2%, up 3.2%, and up 9.8%, respectively, as of 2 p.m. ET.
Fisker got a waiver from its debtholders on financial covenants and was able to reduce $510 million in debt to $324.5 million in exchange for 159.1 million shares of stock.
Source Fool.com
