EV shares skid - where to next?
Tesla, Rivian, and Nio’s stock have all tumbled amid some disappointing results and cloudy forecasts. IGTV’s Angeline Ong takes a look at what the charts say about the road ahead for electric vehicle (EV) stocks.
Bumpy road
We're looking at EVs and it's looking like a bumpy road ahead. Now, let's take a look at the chart. Tesla Inc, Rivian Automotive Inc (All Sessions) and NIO Inc (HK) shares, all tracking lower in the last 12 months.
Nio
Most of this was down to lackluster earnings, particularly a weak revenue outlook and Nio's boss, William Li, foresees more pressure on the vehicle gross margin in the first quarter.
Rivian
Now, let's take a look at Rivian as well, because Rivian's shares are in a similar sort of trend there. As you can see, we had this red candle there on this daily chart. So, that was basically down to its results and murky outlook, as well. It tumbled recently, too, on its forecast for lower production this year. Then, along came price target downgrades.
Tesla
Now, Tesla did post slightly better results, getting up Tesla's chart for you. Tesla has reassured investors that the EV market can ope with a slowing economy in 2023. However, its shares took a tumble after its Investor Day yielded details of a new factory ... but no new vehicle.
Where to next?
Now, it depends on what you want out of the EV stocks and if you are already exposed to this market. If you are thinking that we are coming up or are already in a price war and indeed, we have been seeing a lot of these EV makers release cheaper models, which will attract a younger target audience, plus we still have economic headwinds, then you might want to short this market. However, here is the salad dressing. If you think that this sector is ripe for consolidation, you might want to go long.
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