NKLA - Are EV Stocks in a Bubble? 2 Cautionary Tales Investors Should Know
Electric-car stocks have taken off like a bolt of lighting in recent months.
Shares of manufacturers including Tesla (NASDAQ: TSLA), Nikola (NASDAQ: NKLA), NIO (NYSE: NIO), and Workhorse (NASDAQ: WKHS) have all at least tripled since the beginning of the year, and have delivered even bigger gains to those savvy enough to get in during the market crash in March.
Tesla, now the most valuable carmaker in the world, has led the sector higher, and its market cap around $300 billion dwarfs those of traditional auto stocks. A number of factors appear to be pushing Tesla and its peers higher. An excitement around increasing vehicle deliveries, even during the pandemic, a global push toward renewable energy, and bullish momentum across much of the stock market has lifted the sector to new heights.