Why the EV Stock Rally Fizzled Today

The stock of popular electric vehicle company Nio (NYSE: NIO) popped more than 6% yesterday, and the rally continued into Tuesday. Shares gained another 3% early in the day, but the stock, and others, couldn't hold today's gains. Nikola (NASDAQ: NKLA) and Workhorse Group (NASDAQ: WKHS) shares were also up as much as 5.6% and 11.8%, respectively, earlier Tuesday. But like Nio, the gains mostly evaporated. As of 2:50 p.m. EDT, these stocks were trading as follows:

Nio didn't come out with any specific news yesterday, and its stock had already been rising prior to this week, with shares more than 15% higher over the last month. That's due to investor excitement over its plans to grow outside of China, including its first shipment of vehicles to Norway. It also is closer to beginning sales of the ET7, its highly anticipated technology-laden luxury electric sedan, early next year.

Nio ES8 electric SUVs that were shipped to Norway. Image source: Nio.

Source Fool.com