The Strait of Hormuz Closure Sent Gas Prices Up. EV Stocks Quietly Benefited. Here's Why.

The Strait of Hormuz, which handles roughly a quarter of the world's maritime oil trade, has been closed since Feb. 28. That closure drove up crude oil prices and lifted many oil stocks, but squeezed shares of companies that relied on lower fuel costs.

However, several electric vehicle (EV) stocks have risen since the Strait's closure. Let's see why that happened, and which EV stocks will benefit the most from higher oil prices.

Image source: Getty Images.

Which EV stocks have performed well since Feb. 28?

Higher oil prices can make it more expensive to produce and transport EVs, but they also make them more appealing to consumers who want to escape oil's cyclical swings. That's why the global EV market could grow at a 10% CAGR from 2026 to 2034, according to Fortune Business Insights, and why several top EV stocks are still promising long-term investments.

One of those top performers was Rivian (NASDAQ: RIVN), which has risen 16% since Feb. 28. That rally was fueled by the launch of its R2 SUV, which costs significantly less than its R1T pickup and R1S SUV. The R2 also costs less to manufacture than its predecessors, so its increased sales should actually boost its gross margin rather than compress it.

Rivian expects the R2's launch to boost its annual deliveries from 42,247 vehicles in 2025 to 62,000-67,000 vehicles in 2026. Analysts expect its revenue to triple from 2025 to 2028 as it narrows its net losses. That's an impressive outlook for a stock that trades at less than four times this year's sales. Therefore, it could be revalued as a growth play over the next few years.

Another resilient EV stock was Nio (NYSE: NIO). The Chinese EV maker's stock has risen about 4% since Feb. 28, and it still looks like a screaming bargain at less than one times this year's sales. Nio stands out in the EV market because its vehicles use swappable batteries that can be quickly swapped out, offering a faster alternative to charging at its own battery-swapping stations. It also sells cheaper SUVs and compact cars via its ONVO and Firefly sub-brands.

From 2025 to 2028, analysts expect Nio's revenue to roughly double. They also expect it to finally turn profitable in 2027 as it divests its lower-margin businesses, grows Nio's share of the higher-margin premium sedan market, and scales its cheaper ONVO and Firefly sub-brands.

Should you buy either of these EV stocks today?

Rivian and Nio are still speculative stocks, but both look undervalued and well-positioned to profit from the EV market's long-term expansion. They're well-insulated from higher oil prices, and they'll keep growing as more consumers ditch their gas-powered vehicles.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.