WKHS
Electric vehicle stocks cool as legislation hopes warm
- The electric vehicle sector is facing some shocks as investors have
also pulled back from riskier stocks across the market.
- Over the last four weeks, the sell-off has hit names like Workhorse
Group (NASDAQ:WKHS) -62%, XPeng (NYSE:XPEV) -41%, Nikola (NASDAQ:NKLA)
-39%, Electrameccanica (NASDAQ:SOLO) -38%, Nio (NYSE:NIO) -34%, Canoo
(NASDAQ:GOEV) -32%, Kandi Technologies (NASDAQ:KNDI) -30%, Tesla (NASDAQ:
TSLA) -30% and Hyliion Holdings (NYSE:HYLN) -21%.
- Total market cap loss in the EV space since the top stands at an
astonishing $730B, according to FT.
- Battery and cell companies are also in reverse, with Plug Power
(NASDAQ:PLUG), QuantumScape (NYSE:QS), Romeo Power (NYSE:RMO), CBAK
Energy Technology (NASDAQ:CBAT) and Ballard Power Systems (NASDAQ:BLDP)
all down more than 50% from their 52-week high.
- Valuation is an obvious concern in the sector, but there is also the
question on if there is too much competition on the horizon? General
Motors
(NYSE:GM) and Ford (NYSE:F) have impressed investors this year with
their electrifications commitments. Across the Atlantic, it was
Volkswagen's turn yesterday with a forecast that electric vehicles will
account for more than 70% of European sales by 2030. Meanwhile, EV
startups like Fisker (NYSE:FSR) and Lucid Motors (CCIV, LUCIDM) have
already seemed to generate strong brand loyalty and will soon be
scrapping
for market share, while the Chinese automakers like Xpeng, Nio and Li
Auto
(NASDAQ:LI) are advancing fast on the EV/AV tech front.
- Still, there are enough green catalysts on the horizon to turbocharge
the bull case on buying EV stocks.
- "In the US, there are many pure play innovative EV players (consumer
and commercial) on the horizon poised to capitalize on a Biden driven
green
tidal wave domestically with our expectations that the tax credits and
incentives around EVs will ramp significantly in the coming months given
chatter out of the Beltway," says Wedbush Securities analyst Dan Ives.
- At some point this year, legislation covering electric vehicles is
anticipated, especially with legacy auto giant like GM and Ford now part
of
the electrification push. The Biden administration's newly established
National Climate Task Force has already prioritized accelerating the
advancement of clean vehicles, starting with the federal government's own
fleet, noted Morgan Stanley recently (just ask Oshkosh (NYSE:OSK) about
that).
- What to watch next week in EV world: XPeng spills earnings on Monday
and ARK Invest holds its monthly webinar on Tuesday.
|Today, 9:28 AM|27 Comments
Electric vehicle stocks cool as legislation hopes warm
- The electric vehicle sector is facing some shocks as investors have
also pulled back from riskier stocks across the market.
- Over the last four weeks, the sell-off has hit names like Workhorse
Group (NASDAQ:WKHS) -62%, XPeng (NYSE:XPEV) -41%, Nikola (NASDAQ:NKLA)
-39%, Electrameccanica (NASDAQ:SOLO) -38%, Nio (NYSE:NIO) -34%, Canoo
(NASDAQ:GOEV) -32%, Kandi Technologies (NASDAQ:KNDI) -30%, Tesla (NASDAQ:
TSLA) -30% and Hyliion Holdings (NYSE:HYLN) -21%.
- Total market cap loss in the EV space since the top stands at an
astonishing $730B, according to FT.
- Battery and cell companies are also in reverse, with Plug Power
(NASDAQ:PLUG), QuantumScape (NYSE:QS), Romeo Power (NYSE:RMO), CBAK
Energy Technology (NASDAQ:CBAT) and Ballard Power Systems (NASDAQ:BLDP)
all down more than 50% from their 52-week high.
- Valuation is an obvious concern in the sector, but there is also the
question on if there is too much competition on the horizon? General
Motors
(NYSE:GM) and Ford (NYSE:F) have impressed investors this year with
their electrifications commitments. Across the Atlantic, it was
Volkswagen's turn yesterday with a forecast that electric vehicles will
account for more than 70% of European sales by 2030. Meanwhile, EV
startups like Fisker (NYSE:FSR) and Lucid Motors (CCIV, LUCIDM) have
already seemed to generate strong brand loyalty and will soon be
scrapping
for market share, while the Chinese automakers like Xpeng, Nio and Li
Auto
(NASDAQ:LI) are advancing fast on the EV/AV tech front.
- Still, there are enough green catalysts on the horizon to turbocharge
the bull case on buying EV stocks.
- "In the US, there are many pure play innovative EV players (consumer
and commercial) on the horizon poised to capitalize on a Biden driven
green
tidal wave domestically with our expectations that the tax credits and
incentives around EVs will ramp significantly in the coming months given
chatter out of the Beltway," says Wedbush Securities analyst Dan Ives.
- At some point this year, legislation covering electric vehicles is
anticipated, especially with legacy auto giant like GM and Ford now part
of
the electrification push. The Biden administration's newly established
National Climate Task Force has already prioritized accelerating the
advancement of clean vehicles, starting with the federal government's own
fleet, noted Morgan Stanley recently (just ask Oshkosh (NYSE:OSK) about
that).
- What to watch next week in EV world: XPeng spills earnings on Monday
and ARK Invest holds its monthly webinar on Tuesday.
|Today, 9:28 AM|27 Comments
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