BY Claudia Assis
Tesla Inc. stock and other select few electric-car and alternative-energy stocks rallied on Tuesday, readily outperforming traditional-energy stocks amid a broader stock-market rally.
Tesla /zigman2/quotes/203558040/composite TSLA -8.06% stock rose 5.84%, its largest one-day gain since Sept. 15, when it rose 7.18%. The stock’s close at $423.90 was its best in nearly two weeks. Tesla shares have quintupled this year.
Shares of Nikola Corp. /zigman2/quotes/208704275/composite NKLA -6.81% and the American depositary receipts of China’s Nio Inc. /zigman2/quotes/204905836/composite NIO -9.74% , both makers of electric vehicles, also outperformed the broad market as well as the day’s gains for General Motors Co. /zigman2/quotes/205226835/composite GM -4.35% and Ford Motor Co. /zigman2/quotes/208911460/composite F -4.16% .
U.S. markets got over early Election Day jitters to surge on Tuesday.
Other large gainers in the so-called green energy camp Tuesday included Bloom Energy Corp. /zigman2/quotes/209802424/composite BE -9.11% , which shot up more than 13%, and Fuel Cell Energy Inc. /zigman2/quotes/203763461/composite FCEL -10.74% and Plug Power Inc. /zigman2/quotes/205453512/composite PLUG -13.60%
The rally did not extend to shares of solar-power companies, for the most part, with SunRun Inc. /zigman2/quotes/205021014/composite RUN -7.32% ending the day in the red and SolarEdge Technologies Inc. /zigman2/quotes/207754270/composite SEDG -7.73% adding to its late-Monday stumble.
SolarEdge, a maker of solar inverters and other devices, late Monday reported below-expectations third-quarter sales and guided for weaker sales in the fourth quarter.
Two of the largest exchange-traded funds focusing on solar and other clean-energy stocks diverged on Tuesday, with the iShares Global Clean Energy /zigman2/quotes/205740995/composite ICLN -4.82% underperforming the S&P 500 index only slightly and the Invesco Solar ETF /zigman2/quotes/210041821/composite TAN -5.51% ending in the red.
Both have had hefty gains for the year, up 71% and 125% respectively, and have SunRun among their top holdings. In comparison, the S&P 500 index /zigman2/quotes/210599714/realtime SPX -2.45% has gained 4.3% so far in 2020.
Tuesday’s performance for the solar ETFs compared with steeper losses for ETFs dedicated to oil and gas shares, however. The SPDR Energy Select Sector /zigman2/quotes/206420077/composite XLE -1.93% is down 51% for the year on concerns that the pandemic will continue to chip away at demand for oil and gas and bouts of oversupply.