Electric vehicle (EV) stocks rallied quite a bit on Friday thanks to some good news from one of their more prominent players. That player was not Polestar (NASDAQ: PSNY). Even so, the electric vehicle maker that has been somewhat inconspicuous has profited from the merger. Its shares ended the day nearly 11% higher, easily outpacing the 1.3% gain S&P 500 index.
The manufacturer with the happy news was the peer Polestar Rivian (NASDAQ: RIVN). On Friday, the pickup truck and SUV specialist released its production and delivery figures for the fourth quarter of 2024 and the entire year.
Fortunately, the quarterly numbers were ahead of analyst consensus estimates for both metrics. Perhaps more encouraging for investors and electric vehicle Rivian added that the lack of components that hindered the production of certain models has been overcome.
These statistics come at a time of concern for electric vehicle investors. While such vehicles remain popular, sales growth in the industry is not what it used to be, leading some to worry that their time is running out. A double whammy on two key metrics is exactly what is needed to regain some growth.
Although large and still flooded with capital, the electric vehicle sector is still relatively young compared to other industries. So when one of their ilk releases encouraging news and sees the share price jump as a result, it tends to be replicated across the sector. Hence the double-digit rises of Riviano, Polestar and other colleagues on Friday.
But we should be a little careful here. First, despite the fact that electric vehicles are now increasingly common, there is still no guarantee that they will ultimately become the dominant alternative fuel technology in the future. Second, the companies that make up the sector all operate under different conditions, often in different markets — Polestar, for example, may not meet or exceed its internal targets the way Rivian did.
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