- Valuations of electric vehicle companies rose sharply last year
- Study argues this is a prime example of market delusion
It’s been a tough few weeks for Tesla (US:TSLA), Nio and other electric vehicle (EV) names, following sensational gains over the past year. While the prospect of an economic recovery has taken the heat out of a number of high-growth stocks that had done well during the pandemic, a recent study argues that valuations across the EV sector may have a more serious correction to come.
There’s no doubt that the future of transport is electric. As we noted in Race to Riches on 29 January, just 4 per cent of new light vehicle sales were electric last year, following a 43 per cent year-on-year increase, and Bloomberg New Energy Finance predicts that they will account for half of new sales by 2037.