Why Electric Vehicle Stocks Like Rivian and Lucid Surged Today

What happened

Thursday was an ideal day to be an investor in most electric vehicle (EV) stocks. A sunny forecast from a noted researcher lifted sentiment on major companies in the segment, among them Rivian Automotive (NASDAQ: RIVN), Lucid Group (NASDAQ: LCID), and Fisker Automotive (NYSE: FSR). The three stocks notched gains on the day of over 5%, 13%, and 9%, respectively.

So what

The International Energy Agency (IEA) came out with its annual EV market survey, and its findings really brought the bulls rushing into related stocks.

According to the IEA's projections, worldwide sales of EVs will rise by 35% over the 2022 tally, setting yet another annual record. In pure number terms, 2023 sales should hit approximately 14 million units.

EVs are expected to be far more popular than the traditional internal combustion models. As a result, their share of the total car market is anticipated to increase. It should hit 18% this year, topping the 14% of 2022 and far ahead of the 4% in 2020 -- hardly a long time ago.

The IEA feels that a dramatic and irreversible shift is taking place. It quoted its executive director Fatih Birol as saying that EVs "are one of the driving forces in the new global energy economy that is rapidly emerging - and they are bringing about a historic transformation of the car manufacturing industry worldwide."

"Cars are just the first wave: electric buses and trucks will follow soon," Birol added.

Now what

With that kind of growth, there's plenty of room for EV manufacturers of every size and niche to prosper. Rivian and Lucid have an edge among the aforementioned trio here, as they have rolled out vehicles; Fisker has yet to do so with its Ocean SUV.

10 stocks we like better than Rivian Automotive
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Rivian Automotive wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of April 24, 2023

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.