The performance spread between the established electric vehicle stocks and the newcomers continues to widen. Tesla (NASDAQ:TSLA) is the most established brand, has a strong fan base, and strong liquidity. Investors who invested in Xpeng (NYSE:XPEV) only did well if they sold at the Nov. 2020 peak.
In the last few months, the euphoria for SPACs let QuantumScrape (NASDAQ:QS), a lithium battery developer, soar. The lack of revenue and questionable moat from “fast-charging” promises sent the stock lower in the last week.
Investors should avoid QS stock.
Lordstown Motors (NASDAQ:RIDE) is faring just as badly after calling it quits after just 40 miles of Baja’s San Felipe 250. When markets assigned a valuation in the billions for RIDE stock, such a poor performance is not acceptable.
Investors should avoid RIDE stock too.
Canoo (NASDAQ:GOEV), which sank by 33%, is not likely to rally from here. The company reported zero revenue in the last quarter. It offers speculators hope by targeting the mainstream EV market with affordable units. If Tesla sustained a high average selling price with the mainstream Model 3, Canoo will likely have to do the same. Unable to differentiate itself, GOEV stock is speculation that investors should avoid.
Tech Insider
