RIDE - Why Workhorse Group Nikola and Lordstown Motors Fell in January
Electric vehicle (EV) stocks saw a broad-based correction in January. Workhorse Group (NASDAQ: WKHS) stock fell 22.5% for the month, according to data provided by S&P Global Market Intelligence . Nikola (NASDAQ: NKLA) stock fell 18.6%, and Lordstown Motors (NASDAQ: RIDE) stock fell 13% in January. Workhorse and Lordstown stocks are down roughly 90% in a year.
Almost all electric vehicle stocks have witnessed some correction in the new year. EV stocks rose significantly in the last couple of years, thanks to investors' euphoria for electric vehicles. Supportive governmental policies, environmental concerns, innovations in EVs, improved technology, and falling costs are among the top reasons behind the rapid growth in EVs. Recognizing this trend, investors went all out for EV stocks sending their prices higher. However, investors got a little ahead of themselves as the transition to EVs isn't happening overnight.
Though the long-term growth story remains intact, the misalignment between EV companies' fundamentals and their stock prices is now correcting. Yet, apart from the broader correction, Workhorse, Nikola, and Lordstown Motors is each facing some company-specific issues.
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Why Workhorse Group, Nikola, and Lordstown Motors Fell in January