Electric vehicle stocks have faced selling pressure for most of 2022 due to supply-chain constraints, lingering COVID-19 lockdowns in China and rising inflation concerns.
As investors rotate out of growth names amid a slowdown in economic growth, it seems some of the longer-term EV stories are falling out of favor.
Polestar Automotive Holding UK Ltd PSNY, Canoo Inc GOEV, Nikola Corp NKLA, Rivian Automotive Inc RIVN and Lucid Group Inc LCID are among some of the worst performers.
All five of these EV companies are down more than 50% year-to-date, but Rivian and Lucid have held realtively steady over the last month on the back of positive analyst coverage. Cantor Fitzgerald initiated coverage on Lucid Tuesday with an Overweight rating and a $23 price target.
Related Link: Why Lucid Stock Is Trading Higher Today
Polestar, Canoo and Nikola haven't fared as well. The trio of EV makers have continued to slide amid hot inflation readings and aggressive rate hikes from the Federal Reserve. The Fed raised its benchmark rate by 0.75% for the third straight time last week and indicated that it will continue to hike well above the current level.
Polestar is down about 27% over the last month and it's making new 52-week lows on Tuesday. Redburn Partners initiated coverage on Polestar with a Sell rating at the beginning of September.
Canoo is down more than 34% over a one-month period. The stock has trended lower since the company reported financial results last month. Canoo said it expected $200 million to $245 million in operating expenses and $100 million to $125 million in capital expenditures in the current quarter.
Nikola is also down nearly 30% over the last month. The stock popped at the beginning of August on an agreement to acquire Romeo Power, but it has trended lower since. On Tuesday, Nikola extended its exchange offer to purchase all outstanding shares of Romeo Power until midnight on Oct. 12.
PSNY, GOEV, NKLA Price Action: At time of publication, Polestar is down 2.37% at $5.56, Canoo is down 0.49% at $2.03 and Nikola is down 0.26% at $3.84.
Photo: courtesy of Tesla.
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