On Friday, electric vehicle (EV) stocks had a mixed day in the U.S. market.
Tesla dipped slightly by 0.03%, while Nikola tumbled 10.30%. In contrast, Rivian and Lucid saw gains, rising 5.49% and 1.53%, respectively.
Tesla closed at $355.84, marking its second consecutive day of decline. The drop followed a strong 5.77% surge the previous day, fueled by reports that the U.S. government planned to order $400 million worth of electric armored vehicles from Tesla.
However, CEO Elon Musk quickly denied the claims.
Despite Musk’s denial, Tesla’s stock remained strong, possibly driven by investor optimism over potential government contracts given Musk’s close ties with the Trump administration.
The day before, Tesla had climbed 2.44% after President Donald Trump signed an executive order strengthening the Department of Government Efficiency (DOGE).
However, today’s slight decline ended the two-day rally.
Nikola, meanwhile, plunged 10.30% to close at 54 cents, following a 13% drop the previous day. This contrasted sharply with its 30% surge on February 12.
The stock’s volatility appears to stem from speculative trading amid bankruptcy concerns.
Some investors are betting that the stock’s price—already below $1—will have little downside even in the event of bankruptcy. Others see the potential for significant gains if Nikola stages a turnaround.
On the other hand, Rivian rose sharply by 5.49% to close at $14.03, while Lucid inched up 1.53% to $3.31. The reason behind Rivian’s strong jump remains unclear.