Shares of electric vehicle upstarts Rivian (NASDAQ: RIVN), Lucid Group (NASDAQ: LCID), and QuantumScape (NYSE: QS) were down big on Wednesday, falling 5.2%, 8%, and 8.5%, respectively.

These three are very big names in the electric vehicle industry, but while the long-term future of EVs remains bright, these companies are also burning through lots of cash at the moment. That's not what investors are looking for as the Federal Reserve raises rates and the economy potentially enters a downturn next year.

Hawkish commentary from two different Fed officials today caused stocks to fall, especially unprofitable and cyclical stocks. Unfortunately, electric vehicle stocks are both. The uncertain outlook on interest rates and a potential recession was enough to even send Lucid down, even as it unveiled some exciting new models.

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Source Fool.com