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.

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Source Fool.com