Avoid These 2 Overvalued Electric Vehicle Stocks Popular on Reddit By StockNews
Despite gaining traction, the electric vehicle (EV) industry’s growth hinges on sufficient deployment of charging stations and continued gains in efficiency. The semiconductor shortage is expected to continue until next year, which continues to hinder the industry’s growth. Fundamentally poor EV stocks such as Tesla, Inc., (NASDAQ:), and Canoo Inc., (GOEV) that are popular on Reddit, should be avoided. This is due to the GameStop short-squeeze of January. However, this squeeze was short-lived owing to GME’s weak fundamentals. The growing electric vehicle industry (EV) is also attracting the attention of the community.
The EV market has been growing rapidly thanks to federal funding. However, according to the experts, in the United States, charging facilities are five to 10 times lower than they should be to fulfill Biden’s plan of “50% cars sold to be EVs by 2030.” It requires far more than the $7.5 billion allocated in the infrastructure bill to reach the goal. In addition, there is still a shortage of semiconductors in the market. The shortage of semiconductor, a critical component for EV production has had an impact on several companies’ production targets. Marvell Technology Group Ltd. (NASDAQ:) Matt Murphy, CEO of Marvell (NASDAQ;) expects that the shortage in semiconductors will continue through 2022. It could even extend to beyond.
Canoo Inc.(GOEV) and Tesla, Inc. (“TSLA”), which are both very popular Reddit, seem highly overvalued for their current price levels. These stocks should be avoided immediately.
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