Why Tesla, Rivian, and Lucid Motors Lost Their Charge Today
Shares of leading electric vehicle (EV) stocks (NASDAQ: TSLA), Rivian Automotive (NASDAQ: RIVN), and Lucid Motors (NASDAQ: LCID) were all down big today, declining 5.7%, 6.4%, and 4.5%, respectively, as of 1:55 p.m. ET.
The common theme among these EV leaders is that analysts are now turning bearish on the group following tepid earnings results, as higher interest rates dent these stocks' relatively high values while also hurting demand for EVs. Higher interest rates on car loans make EVs a more difficult purchase for consumers, given that EVs still generally cost more than internal combustion cars upfront.
Electric vehicle stocks, in general, tend to garner much higher valuations than traditional auto companies, given the perceived long-term growth prospects of the space. However, as is now becoming clear, that demand may not be linear, and the high capital costs involved in auto production also add risk.
Source Fool.com
Tesla Inc Stock
Our community is currently high on Tesla Inc with 73 Buy predictions and 29 Sell predictions.
With a target price of 245 € there is a positive potential of 21.08% for Tesla Inc compared to the current price of 202.35 €.
