: Tesla shares climbed for a second day on Wednesday after chief executive Elon Musk sold off more of its stock, while other high-flying electric vehicle makers curbed a euphoric rally.
Luxury electric car maker Lucid Group Inc fell more than 5%, while Rivian Automotive Inc fell 15%, down for the first time since its successful debut in the market last week saw a fall of 15%. the company the second most valued American automaker.
Lucid’s market value eclipsed Ford’s on Tuesday after the company said it was confident it would produce 20,000 of its next Lucid Air sedans in 2022.
Analysts said Rivian’s breathtaking spectacle in its initial public offering boosted demand for other EV stocks.
Tesla climbed 3.25% to US $ 1,089.01, as investors took advantage of Musk’s sale of an additional $ 973 million of shares to pay taxes after exercising the options.
Investors traded $ 33.8 billion in Tesla shares on Wednesday, more than any other company on Wall Street and more than double the revenue of Apple, the second-most traded company, according to Refinitiv.
Musk has sold a total of 8.2 million shares since November 8, representing about half of the 10 percent of his Tesla shares he pledged to sell earlier this month. The gross proceeds from its share sales are approximately $ 8.8 billion.
Electric vehicle makers could benefit from significant new subsidies for electric vehicles from governments, including US President Joe Biden’s “Build Better” spending plan that calls for expanded tax credits for individuals and businesses buy electric vehicles.
Sono Group NV, which makes electric cars integrated with solar panels, jumped 155% on its Nasdaq debut.
Canoo climbed 3.35% after the electric pickup truck maker said it would start production in the United States in the last quarter of 2022, after saying in June that production would begin in 2023.
âIt almost seems to me like it was earlier in the year with the memes share craze, where you get these names coming out and the retail industry adores them. And they have a great story behind them,â Joe said. Saluzzi, Co-Head of Trading at Themis Trading in Chatham, New Jersey.
Lucid, Tesla and Rivian were among the most discussed stocks on investor-focused website stocktwits.com, signaling interest from small investors.
Manufacturers of electric vehicles have also garnered enormous interest from options traders.
Tesla, Lucid, Rivian and blank check firm Gores Guggenheim, which is in a deal to bring Swedish electric car maker Polestar to the stock exchange, were among the 20 most actively traded names in the options market this week, according to data from Trade Alert.
The recent surge in shares of electric vehicles scared short sellers betting that the prices of shares of these companies would fall, leading many traders to close their bets to avoid larger losses, said Ihor Dusaniwsky, managing director. predictive analytics at S3 Partners.
“We’ve seen short hedges in virtually every EV stock,” Dusaniwsky said. “Most EV short sellers are taking mark-to-market losses for the year.”
(Reporting by Medha Singh and Devik Jain in Bengaluru; additional reporting by Noel Randewich in Oakland, California, and Saqib Iqbal Ahmed in New York; editing by Bernadette Baum and Leslie Adler)