Good news from Tesla (NASDAQ:TSLA) is sending many electric vehicle (EV) stocks up today. Indeed, the sector leader is surging on news that it has secured approval to start rolling out its full self-driving (FSD) technology in China. This news provided the boost that TSLA stock certainly needed after a difficult month. But the positivity today has also spread to many of Tesla’s peers, pushing up EV stocks across the board. Among today’s market winners are trendy startups Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN) as well as Chinese EV producer Nio (NYSE:NIO).

With these names in the green after a difficult stretch, does this news mean the EV sector is finally bouncing back from its multi-month slump? Tesla still faces plenty of challenges. But today’s rally is worth a closer look as it pushes up many of the space’s top players.

What’s Happening With EV Stocks?

Watching EV stocks rise today on the back of a Tesla announcement is reminiscent of the sector’s glory days in 2022. Back then, whenever Tesla announced something remotely positive, the news was often enough to send many peers into the green. Of course, TSLA stock has struggled lately as momentum has shifted against many automakers. But today, things are looking up for several beaten down EV stocks. As of this writing, RIVN stock is up about 3% for the day, Nio is up 2% and Lucid is up by around 1%.

Tesla’s good news isn’t the only reason to suspect that EV stocks could mount a comeback. Last week, The Economist reported that EV demand is likely to pick back up later this year as material costs fall and fuel-efficient vehicles provide a more cost-effective alternative to cars running on gas. This means that investors should be snapping up EV stocks now before these predictions pan out.

As long as Elon Musk remains CEO of Tesla, the company will always be shrouded by a fair amount of uncertainty. But the other EV stocks rising today could provide investors with key exposure to a market that appears to be on the verge of rebounding. For example, recent momentum in the Chinese market has been excellent for Nio, which some experts see as having significant upside potential. Meanwhile, Rivian is looking increasingly appealing despite recent struggles. As InvestorPlace contributor Andy Kim reports:

“Rivian ended 2023 with around $10.4 billion in cash reserves, which is a significantly larger sum than what most of the EV start-ups hold. These reserves will allow Rivian to launch its newer models and help the company get through its restructuring phase. While Rivian still has a long way to go before turning profitable, the increasing sales and the introduction of more affordable models make Rivian a favorable long-term investment.”

What Comes Next?

Just how fast this complicated market will rebound remains uncertain. But if today’s performance is any indication, a slow EV comeback may have already begun. Tesla may continue making progress and, if it does, other companies will likely continue to benefit. Additionally, other EV stocks may rise on their own as company-specific catalysts arise. Finally, if EV sales start to climb even just a bit, that could easily help spark a further rally continuing into the next quarter.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.