EV stocks are taking a beating on Tuesday as shares of Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), Li Auto (NASDAQ:LI), and Xpeng (NYSE:XPEV) continue to fall alongside the Nasdaq Composite.
It’s normal for stocks to fall along with a market, but that doesn’t explain why all of these EV stocks are dropping today. To answer that, we have to look at Tesla. The EV company acts as a sort of benchmark for other stocks in its same market.
With Tesla stock taking a dip, it seems reasonable that other companies in the same line of business would see their shares fall. This is especially true when the stock taking the dive is a leader in its market, which TSLA definitely is among EV stocks.
It’s also possible that investors could finally be seeing a pullback to EV stocks after a strong ramp-up when the 2020 presidential elections were nearing their end. This boost came from investors wanting to get in on the green energy craze before President Joe Biden won the election.
The lack of hype surrounding EV stocks is also affecting those new to the market. Churchill Capital IV (NYSE:CCIV) is taking a beating today despite the special purpose acquisition company (SPAC) announcing plans to merge with EV company Lucid Motors.
Even with that drop, investors shouldn’t count CCIV stock out yet. InvestorPlace’s own Luke Lango argues that CCIV stock should be bought and held by investors. You can check out his reasoning at this link.
TSLA stock was down 1.4%, NIO was down 3.7%, LI was down 3.9%, and XPEV was down 3.9% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
