At the start of 2020, there was a period of frenzy with certain stocks seeing huge moves like Tesla (TSLA  ) and Virgin Galactic (SPCE  ). The coronavirus seemed like the remedy for this extreme bullish sentiment as many of these stocks were crushed, and the market's tenor turned to fear from greed.

Since the bottom in March, sentiment rebounded to normal levels. And in recent weeks, pockets of froth have begun to emerge. Nowhere is this more apparent than in the electric vehicle stocks. Some characteristics of these conditions are huge moves in price in short periods of time, big rallies on positive news, and all stocks in the sector rallying.

Of course, the biggest company in this space is Tesla. From its March bottom, the stock is 240% higher. And, it's now 20% above its pre-coronavirus peak. It's even 50% above when Elon Musk originally tweeted that the "stock price is too high". There's no singular catalyst to account for this rise other than the general excitement around the potential for electric trucks being a revolutionary product.

Possibly, the catalyst for the interest in the sector has been the debut of Nikola Motors (NKLA  ). Between May and the first week of June, the stock spiked from $15 to $95 which briefly gave it a valuation higher than companies like Ford (F  ) or General Motors (GM  ) which produce millions of cars. It's mystifying to see this type of price action especially as the company is many years away from actually producing vehicles, and there are several, significant obstacles along the way like producing vehicles, building out its charging network, and beating its competition. Yet, it already has a $24 billion valuation.

Then, there are smaller electric vehicle stocks which have seen huge gains as well. Plug Power (PLUG  ) has tripled from the March lows. It uses hydrogen fuel cells and builds small vehicles that are used in factories currently, although it does have bigger ambitions. Some catalysts for the recent strength in the stock are it completed two acquisitions and upped its 2024 forecast to $1.2 billion in revenue.

FuelCell Energy (FCEL  ) is another winner, as it's up 150% off the March lows. Like all the stocks in the sector, it has an inflated price to sales with a $480 million market cap and $60 million in sales. Basically, investing in the stock for the long-term is contingent on management's ability to execute on its vision. In its last earnings report, FuelCell shares rallied as it exceeded expectations and forecast that it would be profitable in 2022.

Probably the most impressive out of the group in terms of stock price performance is Workhorse Group (WKHS  ) which is up 8x since mid-May. The company is working on electric delivery trucks that could be used by companies like Amazon (AMZN  ), FedEx (FDX  ), UPS (UPS  ), and USPS. Of course, that's a huge opportunity and would help those companies save money. It's also working on drones that could take packages from the truck to people's doors. So far, Workhorse Group has no revenue and is years away from having a final product, yet that hasn't prevented it from getting a valuation over $1 billion. Like a lot of stocks in the sector, the price is a bargain if someone believes it will succeed and likely a zero if they don't.