As tech stocks rallied, with the Nasdaq rising more than 1%, U.S. electric vehicle companies saw widespread gains—except for Nikola.
On Thursday, Tesla surged 5.77%, Rivian climbed 6.57%, and Lucid skyrocketed 13.59% on Wall Street. In stark contrast, Nikola plummeted 12.80%.
Tesla’s stock price jumped 5.77% to close at $355.94, fueled by reports that the U.S. government planned to order $400 million worth of electric armored vehicles from Tesla. However, CEO Elon Musk swiftly denied these claims.
Despite Musk’s denial, Tesla shares continued to rise as investors bet on the company’s potential to secure major contracts, given Musk’s close ties with the Trump administration.
While a federal contract may not materialize, optimism is growing over Tesla’s chances of securing large state-level deals.
The previous day, Tesla gained 2.44% after President Trump signed an executive order granting more authority to Musk’s Department of Government Efficiency (DOGE).
With two consecutive days of strong gains, Tesla’s market capitalization swelled to $1.145 trillion, reclaiming seventh place in global market value rankings.
Tesla’s rally appeared to lift the broader EV sector, with Rivian rising 6.57% to $13.30 and Lucid surging 13.59% to $3.26.
Lucid’s sharp gains followed the announcement of Imad Dala’s appointment as Senior Vice President of powertrain development.
Dala, widely recognized for leading Lucid’s technological advancements, is expected to drive further innovation in his new role. The news energized investors, contributing to the stock’s strong performance.
Meanwhile, Nikola closed down 12.80% at $0.60, moving in the opposite direction of its industry peers.
The company’s recent financial struggles and brush with bankruptcy have drawn a wave of speculative investors, leading to extreme volatility and sharp price swings for the embattled electric truck maker.