As EV stocks rally, Tesla snapped its nearly two-week winning streak. Yahoo Finance Senior Business Reporter Ines Ferre breaks down the stock's run.

Video Transcript

AKIKO FUJITA: Stocks joining AI names and leading the stock market rally, driven by Tesla's 13 straight days of gains. But that record just broken with a modest decline today. Let's bring in Yahoo Finance's Ines Ferre for that. Ines.

INES FERRE: And guys speaking of AI, investors have been piling on the EV stocks lately, part of that having to do with that craze because of AI. I'm going to pull up a 10-day chart so you can see here Tesla up 25% over the last 10 days. In fact, year to date this stock is up a whopping 108%. Part of this has to do because of AI. Adam Jonas over at Morgan Stanley writing a note recently saying that investors are thinking of Tesla first as an AI company and second as an automobile maker.

But nevertheless, he points out, look, there's a big difference between some of the products that Tesla is building like autonomous driving, that type of AI and generative AI, difference there. But nonetheless, investors really are piling on to these stocks recently. I also want to note that investors have been anticipating that the Fed would indeed pause its rate hikes.

And remember that high rates are terrible for growth stocks for companies that need capital, that need cash because the cost of capital is more expensive with those higher rates. So in anticipation of a Fed pause, you saw names going higher.

Also, China's central bank has slashed its short-term rate as well. So that gave a boost to some of the Chinese ADRs like Xpeng, like NIO as well, Li Auto also over the last three days is up as well.

And then I just want to point out what's been happening with Nikola-- the past three days up 53%. Remember that this stock hit an all-time low of $0.52 on June 6. And, in fact, just last month, you had the NASDAQ that warned Nikola that it could be delisting from the NASDAQ because the stock had been closing under $1 for the past 30 business-- consecutive business days. Nikola seeing a big rally as well.

AKIKO FUJITA: Wow, 53%, that is pretty incredible to see. Ines, thanks so much for that.