2 Electric Vehicle Stocks Recently Downgraded by Goldman Sachs

2 min


67
12 shares, 67 points

Author: StockNews
This post originally appeared on Stock Market News

2 Electric Vehicle Stocks Recently Downgraded by Goldman Sachs© Reuters. 2 Electric Vehicle Stocks Recently Downgraded by Goldman Sachs

A semiconductor chip shortage and overvaluation concerns have been taking a toll on electric vehicle (EV) stocks of late. While the EV industry’s long-term prospects look bright, many companies in the sector with weak fundamentals are expected to continue retreating in the near term. Goldman Sachs (NYSE:) recently downgraded EV manufacturers Fisker (FSR) and Lordstown Motors (RIDE). So, let’s look at those names.Electric vehicle (EV) stocks saw an astonishing rally last year on investors’ exuberance over the industry’s huge growth prospects. Worldwide governmental initiatives to shift to zero-emission transport as part of the broader goal to build a sustainable energy-based future motivated investor to bet on EV stocks, in some cases irrespective of their fundamentals. In fact, the industry’s potential growth made has caused it to now be, arguably, overcrowded with new entrants.

Nevertheless, the optimism over the industry and the consequent rally in EV stocks pushed shares of most industry participants to valuations that often don’t justify their current fundamentals and growth prospects. Furthermore, a semiconductor shortage is causing operational disruptions at many established EV manufacturers. Investors also expect a dip in EV demand with an anticipated decline in prices in the coming quarters.

Advertisements

Consequently, many EV players that lack the fundamental strength to survive these headwinds are expected lose value. Goldman Sachs recently downgraded Fisker Inc (FSR) and Lordstown Motors Corp (RIDE). So, it could be wise to stay away from these stocks now.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Advertisements

Like it? Share with your friends!

67
12 shares, 67 points

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win

0 Comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.