One analyst believes the outlook for electric vehicle (EV) stocks in 2022 won’t offer the same support it has during the current year.
Loup Ventures analyst Gene Munster is behind the report today on EV stocks colling off. According to him, it’s not normal for the stock market to continue trends over the course of several years. That means that EV stocks aren’t likely to maintain the same popularity in 2022 that they’ve had in 2021.
During a recent interview, Munster said the following, as reported by Seeking Alpha.
“It is rare that a theme that goes vertical in Year One goes vertical in a subsequent year. When I think of investing themes for 2022, I think it is unlikely that EV space has the same vertical move.”
Munster specifically pointed out that this might be why Tesla (NASDAQ:TSLA) CEO Elon Musk is willing to sell shares of his stock this year. It could let him cash out some of his investment before the outlook for EV stocks slows in 2022.
Even after saying all of that, the Loup Ventures analyst says there’s still potential for TSLA stock to grow next year. He continues to maintain an incredibly bullish $2,500 price target for the stock. For the record, TSLA was trading at about $952 per share as of this writing. Also, the analyst consensus price target is $798.24.
TSLA stock is down slightly as of Wednesday morning but is still up 29.4% since the start of the year.
Investors looking for more stock market news will want to stick around!
We’ve got all the latest stock stories traders need to know about for Wednesday. Among them are Ocugen (NASDAQ:OCGN) jumping on vaccine data, Samsara set to start trading today, as well as this morning’s biggest pre-market stock movers! You can find all of that info at the following links!
More Wednesday Stock Market News
- OCGN Stock Moves Higher on New Vaccine Data. What to Know.
- Samsara IPO Alert: 10 Things to Know as IOT Stock Starts Trading Today
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
