Are stocks of the EV makers worth buying?
With the vehicles shipped that are far and between, it never fails to amuse me how $Faraday Future Intelligent Electric Inc.(FFIE)$ could stay afloat amidst its deteriorating fundamentals. Its order book is so bad that it has to count on its own company executives to buy its vehicles. Promised measures by the management to protect shareholder value and improve profitability seem to be so distant. I suspect that had there been no support from the meme community in short-squeezing the counter, the stock would have been long beaten to the ground. I would think those onboard should have an exit strategy to avoid drowning with the sinking ship.
With slowing demands for electric vehicles amidst sticky inflation and expectations for interest rates to stay higher for longer, the going has not been easy for Tesla nor the Tesla-wannabes. $Rivian Automotive, Inc.(RIVN)$ has planned further cost savings in an attempt to trim its losses. Containing costs is gaining importance after burning cash on its EV development. At the same time, strategies to boost competitiveness and boost demands amidst rising competition is important for its business to be sustainable. Until there are signs of operational and sales improvements, I'll refrain from exposure in Rivian.
Slowing global demands for EV have also been affecting the Chinese EV startup trio $NIO Inc.(NIO)$ , $XPeng Inc.(XPEV)$ and $Li Auto(LI)$ , while adding to their woes is a growing number of conventional car makers jumping onto the EV bandwagon intensifying the competition and resulting in an oversupply, that has also led to an inevitable price war to clear inventories and keep their production lines running. As the trio struggles to find enough buyers to sustain growth, their stock prices have been struggling to regain their past glories too.
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