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A number of upstart electric vehicle makers’ stock prices soared in recent years, as investors looked for the next company to shake up the car market. But all have struggled recently — as has Tesla (TSLA) itself.
Rivian was briefly the third-most-valuable automaker on the planet, behind only Tesla and Toyota, despite having yet to report any sales when it went public. When it finally reported its first sales on December 16 they fell short of expectations, and the company cited the same chip and parts shortages dogging the rest of the auto industry. Shares closed Thursday down 44% from that pre-report high, and the sales report proved to be a headwind for Lucid shares as well.
Even Tesla, which earlier this year became only the sixth company to reach a $1 trillion market value, has encountered recent troubles. Shares sank as much as 27% from an all-time high set on November 4 through Tuesday — before a late-week rally lifted it back above the $1 trillion mark. Still, it is trading 13% below its all-time peak.
Part of the recent problem for EV stocks is the apparent demise of the Biden administration’s Build Back Better bill, which had a number of goodies for the EV industry, including enhanced tax credits for buyers that would have allowed automakers to charge more for the vehicles. Build Back Better also includes money for a network of rapid charging stations, which would have answered potential EV buyers’ concerns about running out of juice while on the road.
“That was a gut punch to the EV bulls,” said Dan Ives, tech analyst for Wedbush Securities. “For incremental demand in 2022 and beyond, the EVs tax credits is a 15% swing factor in demand.”
But much of the decline in EV stocks took place before Sen. Joe Manchin said last week he couldn’t support the legislation, throwing its future in severe doubt.
Much of the dip is due to continued announcements from established automakers such as Volkswagen, Toyota, Ford and GM about additional investment plans in EVs. The…
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Source : cnn
