The market for electric vehicles (EVs), is growing due in various degrees to global regulations and subsidies. However, the industry’s growth depends largely on the deployment of charging infrastructure. Wall Street is expecting a drop in the price of popular EV stocks like Tesla (NASDAQ:), and Lucid(LCID), due to the current global shortage of semiconductors and the lack thereof. Continue reading. The rapid growth of the electric vehicle (EV) market has been fueled in part by government subsidies and regulatory pressure for low-emission vehicles. Global EV market shares are expected to range from 7%-10% by 2021 as nations worldwide work towards zero emissions targets.

However, insufficient EV charging infrastructures could limit the industry’s growth. To keep up with increasing EV penetration, a National Renewable Energy Laboratory study (NYSE:) revealed that 380 EV charger ports need to be installed every day for the next nine-years. On average, 30 ports were added per day in the U.S. during 2010-2020. Furthermore, supply chain disruptions are expected to weigh on the industry’s production capabilities, owing mainly to the semiconductor shortage, which could extend into 2022 and beyond.

In the short term, industry headwinds might also affect the ability to produce popular EV stocks Tesla, Inc., and Lucid Group, Inc. Wall Street analysts expect these stocks to drop by 25% or more in the near future, given this background.

Continue reading on StockNews