4 Factors That Are Popping the EV Stock Bubble

Barron's2021-05-13

Electric-vehicle investors are going through abrutal stretchafter an epic year. Shares fell hard across the sector on Wednesday as concern aboutinflationjoined the list of worries dragging on the ...

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Comments

SalTheFun
2021-05-13
SalTheFun
Cannot do much. Jz have to wait liao... got money can buy bottom price ?
Laapreecoorn
2021-05-13
Laapreecoorn
Jialat
Benstonk
2021-05-13
Benstonk
It’s not a bubble it’s a foam
- Horngryz:
  lol foamy
ILFTS
2021-05-13
ILFTS
When will it raise
JLCH
2021-05-13
JLCH
……….
Zack克明冲
2021-05-13
Zack克明冲
Pop n rock!!
- Horngryz:
  nowrocky
- ApplePL:
  Comment pls

Leave a comment

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Stock in Tesla (ticker: TSLA), the leader of the EV pack, dropped 4.4% Wednesday, closing below $600 a share for the first time since early March. Shares closed near the low of the day.\nThe average drop among the EV stocksBarron’stracks was about 3%. TheS&P 500,Dow Jones Industrial AverageandNasdaq Compositedropped 2.1%, 2% and 2.7%, respectively.\nBehind all those declines was news early in the day that consumer prices increased 4.2% year over year in April, far higher than the Federal Reserve’s 2% target. In April 2020, of course, things were falling apart, sending prices lower, amid Covid-19 lockdowns, so the gain was relative to a low base. But the March to April pickup in prices, excluding food and energy, was 0.9%. That rate equals full-year inflation of more than 11%.\nInflation that high is like a parasite, eating into savings and sucking energy out of the economy. 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And theChineseEV makersNIO(NIO),XPeng(XPEV) andLi Auto(LI) have fallen an average of about 45% from their 52-week highs.\nInflation is just the latest problem for the stocks.More competitionin the EV business, with traditional auto makers pouring billions into developing vehicles, is one problem. At the same time, the global shortage ofsemiconductorsis constraining automotive production around the globe, making it hard for EV makers to benefit from red-hot demand for cars and rising gasoline price.\nWhat is more, many of the new EV companies became public by merging with special-purpose acquisition companies. Many SPAC stocks, not just the EV-related ones, are struggling. TheDefiance Next Gen SPAC Derived ETF(SPAK) is down 34% from its February 52-week high.\nA dozen EV-SPAC companiesBarron’stracks are now down 15% over the past year on average. Only five remain above their SPAC merger price of $10 a share: Lucid,Fisker(FSR),Arrival(ARVL),QuantumScape(QS), andNikola(NKLA).\nInvestors might believe that means those are the long-term winners among the EV SPAC stocks. But it is also possible their higher prices mean there is still further to fall.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":191474919,"gmtCreate":1620904309731,"gmtModify":1704350182126,"author":{"id":"3579809773434763","authorId":"3579809773434763","name":"SalTheFun","avatar":"https://static.tigerbbs.com/69c72146aa04d3efddd999f936505379","vip":1,"crmLevel":8,"crmLevelSwitch":1,"idStr":"3579809773434763","authorIdStr":"3579809773434763"},"htmlText":"Cannot do much. Jz have to wait liao... got money can buy bottom price ?","listText":"Cannot do much. Jz have to wait liao... got money can buy bottom price ?","text":"Cannot do much. Jz have to wait liao... got money can buy bottom price ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/191474919","repostId":1188302199,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":191446076,"gmtCreate":1620903309995,"gmtModify":1704350164176,"author":{"id":"3575030857664126","authorId":"3575030857664126","name":"Laapreecoorn","avatar":"https://static.tigerbbs.com/925f23b906aea0be5c57fbac9b935a06","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3575030857664126","authorIdStr":"3575030857664126"},"htmlText":"Jialat","listText":"Jialat","text":"Jialat","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/191446076","repostId":1188302199,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":191441029,"gmtCreate":1620902975561,"gmtModify":1704350160885,"author":{"id":"3574851080358491","authorId":"3574851080358491","name":"Benstonk","avatar":"https://static.tigerbbs.com/c8a964cfa9223e4704989c9a4b9b772e","vip":1,"crmLevel":3,"crmLevelSwitch":1,"idStr":"3574851080358491","authorIdStr":"3574851080358491"},"htmlText":"It’s not a bubble it’s a foam","listText":"It’s not a bubble it’s a foam","text":"It’s not a bubble it’s a foam","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/191441029","repostId":1188302199,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4315492,"gmtCreate":1620912989996,"gmtModify":1680788556757,"authorId":3569807654789153,"author":{"id":3569807654789153,"idStr":"3569807654789153","authorId":3569807654789153,"name":"Horngryz","avatar":"https://static.tigerbbs.com/c97e02620d57cf3c3449462d356cd6c0","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":191441029,"type":1,"supId":0,"prevId":0,"content":"lol foamy","text":"lol foamy","html":"lol foamy"}],"langContent":"EN"},{"id":191454274,"gmtCreate":1620902434898,"gmtModify":1704350153801,"author":{"id":"3562921834163798","authorId":"3562921834163798","name":"ILFTS","avatar":"https://static.tigerbbs.com/4e8eb567072e2b7f82acb5ce6ecab099","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3562921834163798","authorIdStr":"3562921834163798"},"htmlText":"When will it raise&nbsp;","listText":"When will it raise&nbsp;","text":"When will it raise","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/191454274","repostId":1188302199,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":191456689,"gmtCreate":1620902200141,"gmtModify":1704350148713,"author":{"id":"3572670964273182","authorId":"3572670964273182","name":"JLCH","avatar":"https://static.tigerbbs.com/37f9208a53c3a3c582fb50de5cde53d4","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":5,"crmLevelSwitch":0,"idStr":"3572670964273182","authorIdStr":"3572670964273182"},"htmlText":"……….","listText":"……….","text":"……….","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/191456689","repostId":1188302199,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":191424731,"gmtCreate":1620901528623,"gmtModify":1704350139174,"author":{"id":"3574222119045289","authorId":"3574222119045289","name":"Zack克明冲","avatar":"https://static.tigerbbs.com/87d4276781b63267606929e671232344","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574222119045289","authorIdStr":"3574222119045289"},"htmlText":"Pop n rock!!","listText":"Pop n rock!!","text":"Pop n rock!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/191424731","repostId":1188302199,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4315499,"gmtCreate":1620912999861,"gmtModify":1680788561031,"authorId":3569807654789153,"author":{"id":3569807654789153,"idStr":"3569807654789153","authorId":3569807654789153,"name":"Horngryz","avatar":"https://static.tigerbbs.com/c97e02620d57cf3c3449462d356cd6c0","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":191424731,"type":1,"supId":0,"prevId":0,"content":"nowrocky","text":"nowrocky","html":"nowrocky"},{"id":4313716,"gmtCreate":1620901749766,"gmtModify":1680788519786,"authorId":3581735199167645,"author":{"id":3581735199167645,"idStr":"3581735199167645","authorId":3581735199167645,"name":"ApplePL","avatar":"https://static.tigerbbs.com/0aa8f389e191dba5ddcc664bc53af5a4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":191424731,"type":1,"supId":0,"prevId":0,"content":"Comment 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