Electric vehicle stocks staged a notable recovery on Friday, led by a double-digit surge in Lucid Group after UBS revealed a significant new investment. The rally contrasted sharply with developments in Europe, where automaker Stellantis recorded a massive impairment charge linked to its EV plans.
U.S. EV Makers Rebound
Lucid shares jumped 13.9% to close at $10.86 after UBS reported acquiring 3.81 million shares during the fourth quarter of 2025, bringing its total position to 7.68 million shares valued at approximately $73 million. The move provided a catalyst for the beleaguered stock, which has experienced heightened volatility following a 1-for-10 reverse split last August.
Other U.S. EV makers joined the advance. Rivian Automotive gained 7.8% to finish at $14.80, while industry leader Tesla rose 3.5% to $411.11. The gains mirrored a broader recovery in technology-oriented stocks, with market participants citing a renewed appetite for risk. "The market looks like it was getting a bit overdone to the downside," noted Robert Pavlik, senior portfolio manager at Dakota Wealth.
European Setback for EV Transition
The positive sentiment in the U.S. was tempered by stark news from Europe. Stellantis saw its Milan-listed shares plummet as much as 30% after the company announced a 22.2 billion euro ($26.5 billion) charge connected to a strategic overhaul of its electric vehicle business. CEO Antonio Filosa acknowledged that previous market expectations were "over optimistic." Analysts viewed the writedown as a clear signal that the pace of the consumer shift away from combustion engines has disappointed legacy automakers.
Further pressure on the European EV supply chain emerged as Automotive Cells Company (ACC)—a joint venture backed by Stellantis, Mercedes-Benz, and TotalEnergies—informed unions it was canceling plans for battery gigafactories in Italy and Germany. ACC stated the necessary "prerequisites" for the projects were unlikely to materialize.
Focus Turns to Upcoming Results
The sustainability of the rally for EV startups remains uncertain, heavily dependent on upcoming financial disclosures. Rivian is scheduled to report its fourth-quarter results on February 12, which will provide critical updates on demand and cash burn. Lucid has set a conference call for February 24 to discuss its own quarterly performance.
Analysts caution that the sector remains vulnerable to shifts in market sentiment. A return to a "risk-off" environment could quickly refocus attention on funding costs, pricing pressures, and whether demand can justify the sector's substantial capital expenditures.
