Tuesday started off as a strong day for start-up stocks in the electric vehicle (EV) sector.shares of quantum landscape (QS 1.96%), canoe holdings (GOEV 5.08%)When flashing charge (BLNK 0.93%) It’s up 5% to 7% this morning.Each reduced their benefits as the days progressed, but they all still outweighed the tech-heavy NASDAQ Composite Index as of 3:20 PM ET. QuantumScape continued to rise 2.6% as the Nasdaq was negative at the time, while Canoo and Blink rose 4.7% and 1.9% respectively.
All of these stocks are down more than 50% this year, and all have crashed. Canoo’s stock has plunged 84% year-to-date, including gains of nearly 15% over the past three trading sessions.Recent jumps are Canoo CEO Tony Aquila buys $10 million of his company’s stock last week.
Today’s outperform may bounce back somewhat against these big drops.It could also be related to the subsequent recovery in oil prices Yesterday, it plunged to its lowest price in almost a year.Rising fossil fuel prices are pushing investors Renewable energy sector.
None of these three companies have turned a profit, which is the main reason investors have turned them away this year. Rising interest rates and inflation impacting costs are headwinds for start-ups. QuantumScape has pushed the most likely date for commercialization of all-solid-state battery technology to 2025, he said. It’s a long time for investors to believe in the near future as volatility is so high. However, investors remain interested in his QuantumScape advances as the technology could disrupt the supply of EV batteries in the future.
This spring, Canoo told investors it had “significant doubts” about whether it would have enough cash to continue operations. Since then, however, the company has announced several deals with customers to purchase its upcoming electric commercial vans. walmart Purchasing 4,500 Canoo vans was not binding, but Canoo already has advanced deliveries to help retailers adapt their products to meet their last-mile delivery needs.
Canoo has since announced binding orders for more than 12,000 vehicles from other customers. Large stock purchases by the CEO and the entities he controls have given investors more confidence after this year’s stock market crash.
Blink Charging is the only one of these businesses that is profitable. The company said third-quarter sales increased 169% year-over-year to $17.2 million. We expect continued growth as we invest to increase the capacity of our announced existing and potential new plants. Blink offers both commercial and home EV charging systems.
Today, investor sentiment is back on those growth names. However, that doesn’t mean the profits will last. It ultimately comes down to underlying business progress and ultimate profitability.
Howard Smith I work for QuantumScape Corporation. The Motley Fool holds positions in and recommends Walmart. The Motley Fool’s U.S. headquarters Disclosure policy.