RIDE - Why Lordstown Motors Nikola and QuantumScape Plummeted Today
Shares of electric vehicle (EV) original equipment manufacturers (OEMs) Lordstown Motors (NASDAQ: RIDE) and Nikola (NASDAQ: NKLA) , as well as battery manufacturer QuantumScape (NYSE: QS) , each fell hard today, down 7.5%, 7.8%, and 5.6%, as of 12:30 p.m. ET.
There wasn't much in the way of news today in these stocks; however, these electric-vehicle-related companies had two things going against them today: a comedown after the enthusiasm following the passage of the Inflation Reduction Act , as well as anxiety over the path of inflation and interest rates ahead of this week's meeting of Federal Reserve officials in Jackson Hole, Wyoming.
Since these three growth stocks are minting hefty losses on their bottom lines, with their profits well out into the future, they are highly sensitive to upward moves in interest rates. Unfortunately, after coming down from its June highs, the yield on the 10-year Treasury bond is going back up again, up about 20 basis points in the past week, and rising again to top 3% for the first time in over a month.
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Why Lordstown Motors, Nikola, and QuantumScape Plummeted Today