The electric vehicle (EV) and renewable energy market took a nosedive this week and it seemed everyone was affected. Part of the drop was due to 's (NASDAQ: TSLA) layoffs announced earlier this week, but part was because investors think the market is overvalued if interest rates are going to stay elevated for the foreseeable future.

According to data provided by S&P Global Market Intelligence, Polestar Automotive's (NASDAQ: PSNY) shares dropped 10.3% from Friday's close to 1:45 p.m. ET today, ChargePoint (NYSE: CHPT) was down 13.7%, and Array Technologies (NASDAQ: ARRY) fell 13.3%. They're from slightly different industries, but they're all impacted by the same news this week.

Let's start with the biggest news of the week: Tesla's layoffs. The company announced about 10% of workers would be let go in a major restructuring. Management said this would make the company more efficient, but the reality is that demand for vehicles is dropping. Tesla delivered 386,810 vehicles in the first quarter of 2024, down from 422,875 a year ago.

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Source Fool.com