2024-02-13 03:38:50 ET
Summary
- Germany expects a decline in EV sales in 2024, signaling a potential slowdown in the electric vehicle market.
- Used EV prices have seen a significant decline too, indicating weaker demand for electric vehicles in the secondhand market across the USA.
- The Global X Lithium & Battery Tech ETF has seen a decline in assets under management and poor performance, raising concerns for long-term investors.
- With a decent mid-teens P/E, I spot key technical price levels to monitor as bullish seasonal trends approach.
There have been several headlines and data points recently casting shade on the electric vehicles [EV] boom. Bloomberg reported that Germany now expects its first annual decline in EV sales in eight years. What’s more, domestic automakers are beginning to shift back toward internal combustion engine [ICE] and hybrid vehicles, given softer consumer demand for EVs. Finally, I took a look at the latest Manheim Used Vehicle Value Index – it shows the steepest wholesale price dip being in the EV category. These are concerning trends, and ongoing weakness in China does no favors for the demand for lithium-related stocks. ...
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LIT: Bearish Momentum Trends, The Valuation Case Hasn't Improved Much