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Nevertheless, the optimism over the industry and the consequent rally in EV stocks pushed shares of most industry participants to valuations that often don’t justify their current fundamentals and growth prospects. Furthermore, a semiconductor shortage is causing operational disruptions at many established EV manufacturers. Investors also expect a dip in EV demand with an anticipated decline in crude oil prices in the coming quarters.
Consequently, many EV players that lack the fundamental strength to survive these headwinds are expected lose value. Goldman Sachs recently downgraded Fisker Inc (FSR) and Lordstown Motors Corp (RIDE). So, it could be wise to stay away from these stocks now.
