Bloomberg: EV bubble bursts as shares of TSLA, NIO and Rivian fall

The best evidence that the EV bubble is bursting is the stock market. Not a single EV stock has risen this year. Tesla shares are down 40% in 2024, while Rivian, Nio, Lucid and XPeng are all down 62%, 55%, 42% and 50% respectively.

TSLA vs. RIVN vs. NIO vs. LCID vs. XPEV aandelen

Similarly, Fisker, the company that produces its cars in Austria, has been delisted by the NYSE. Shares such as Mullen Automotive, Canoo and Workhorse Group are also falling.

More importantly, major car manufacturers such as Mercedes Benz, General Motors, Ford and Stellantis have started to reduce their EV investments. Ford and GM have shifted some of their investments to stock buybacks and dividends.

Investors have rewarded traditional automakers this year. In particular, they have rewarded companies that have a wide range of hybrid vehicles.

Toyota shares are up more than 26% this year. Stellantis is up 10.4%, with Ferrari, GM and Mercedes Benz up double digits over the past twelve months.

I believe the EV industry will not die, but its growth trend will moderate in the coming years. As I in mine QuantumScape stock forecast he wrote, solid-state battery technology, along with increased investment in charging infrastructure, will help fuel its growth.