The next Tesla proves hard to find
“It was a big blow for the EV bulls,” said Dan Ives, technical analyst for Wedbush Securities. “For the additional demand in 2022 and beyond, the tax credits for electric vehicles represent a factor of oscillation of 15% of the demand. “
“There will be losers in the battle for electric vehicle market share,” Ives said. “Rivian comes out the door with a lack of delivery, it couldn’t have happened at the worst time. It’s a dark cloud for the makers of outright EVs. And investors have a lot less patience with everything wrong. no execution. “
The two most struggling electric vehicle stocks – Nikola and Lordstown Motors – lost 27% and 80% of their value, respectively, through Thursday’s close, although Nikola’s stock jumped 18% on Thursday after announcing that she had finally made her first truck delivery.
The difficulty these companies had in keeping their initial promises means companies like Lucid and Rivian will need to do more to prove themselves before they are fully adopted by investors, Ives said.