There were such high hopes for the electric vehicle market, which is the problem with the share prices of EV stocks today. The outlook for EVs was and is robust, but the growth was priced in at the very start. Since then, EV companies failed to capture the growth or profits forecasted without cutting deeply into shareholder value. Many EV OEMs have relied heavily on dilutive actions and share price manipulation to keep themselves afloat and investors interested.
The critical takeaway for investors is that many EV companies have advanced the technology and/or established infrastructure with some value; the question is if the respective companies can unlock it. If history can be used as a guide, there are more bankruptcies on the way, but maybe not for everyone. Nikola is the latest to file for Chapter 11 protection and wipe out its shareholders; others may soon follow suit.
