Is Now the Time to Buy Electric Vehicle Stocks?
The astounding rise in shares of Tesla (NASDAQ: TSLA) over the past 20 months is a likely reason that other electric vehicle (EV) start-ups decided to go public last year. Many used mergers with special purpose acquisition companies (SPACs) to raise capital and enter the public markets.
Tesla's stock has soared over 1,200% since the fall of 2019, as the company ramped up production to become the leading global EV maker. But investors still valued the company on its potential, rather than actual sales and current business fundamentals. The same happened with many EV start-ups that went public in 2020 -- many of which are still pre-revenue and haven't produced a single product.
Some amount of reality set in this year, however, and many of those stocks crashed back down to earth. That makes it a good time to see if adding EV names to your portfolio makes sense now.
Source Fool.com
