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STOCK ALERT! Electric Vehicle Stocks Remain Hot.

Two That Are Making News.

Investors can’t get enough of EV stocks these days. And the companies are obliging with more deal activity.

For starters, Chinese EV maker NIO (ticker: NIO) is getting more credit for business development. Chinese tech news website cnTechPost reported Friday that the company signed a 10.4 billion yuan credit facility with Chinese banks. That works out to roughly $1.5 billion U.S. dollars. NIO wasn’t immediately available to comment on the report.

It’s a lot of money for NIO, which has about $2.2 billion in assets, supported in part by roughly $1.5 billion in debt.

NIO stock has enjoyed quite a reversal of fortune lately. Investors were worried about cash earlier in 2020. Shares, however, are up about 241% since late February. A deal for fresh capital with the local government where the company operates started NIO’s stock price rally.

All EV stocks, however, have caught fire—powered, in part, by strong results from EV behemoth Tesla (TSLA). Tesla shares are up about 93% since late February, as strong financial and operating results have convinced investors that EVs are here to stay.

Recent gains have made Tesla the most valuable car company in the world. NIO is still much smaller than Tesla, selling roughly 40,000 vehicles a year, compared with Tesla’s 400,000. But investors are searching vigorously for the next Tesla.

In addition to NIO’s stock surge, shares in commercial electric van maker Workhorse (WKHS)—as well as alternative-fuel heavy duty trucking firms Tortoise Acquisition (SHLL) and Nikola (NKLA)—have rallied too. Workhorse shares are up 328% since late February. Tortoise and Nikola stocks are up 168% and 422%, respectively, over the same span.

And another aspiring EV firm just got a billion dollar valuation: Spartan Energy Acquisition (SPAQ). Its shares spiked more than 30% Thursday after reports the company was in talks to buy EV maker Fisker. Spartan stock jumped another 11.4% Friday.

Spartan is a special purpose acquisition company, or SPAC, formed to find new investments. The company is apparently focused on EV technology. Fisker didn’t respond to a request for comment.

Fisker plans to launch an electric SUV called Ocean in 2022. Fisker calls it the “world’s most sustainable vehicle,” made from recycled materials including “abandoned fishing nets and plastics from the ocean.”

Spartan is up on Thursday’s news. NIO stock isn’t reacting much to today’s credit facility news—not much for an EV stock, that is. Shares fluctuated, but closed 2.8% higher Friday. The Dow Jones Industrial Average rose 1.4%, while the S&P 500 added 1.1%.

Write to Al Root at

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