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Electric vehicle stocks Lucid and Rivian soar as investors seek out the next Tesla – Morning Brew

Dianna "Mick" McDougall, Rivian
· less than 3 min read
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There’s a new silent killer on Wall Street: electric vehicle stocks not named Tesla.
Since going public last week, Rivian has more than doubled in value after gaining another 15% yesterday. With a $146.7 billion market cap, it’s now the third-most valuable automaker in the world behind Tesla and Toyota, since it zoomed by Volkswagen yesterday.
Quick stat check:
But let’s not pick on VW—Rivian is also more valuable than nearly 90% of S&P 500 companies, including Starbucks, Boeing, and Goldman Sachs.
And then there’s Lucid Motors. This EV startup, which is run by a former Tesla exec, surged nearly 24% yesterday after the company reported its first quarterly earnings since SPAC-ing in July.
What’s Lucid’s deal?
Some analysts warn this surge of EV stocks with minuscule revenue is a sign of “froth” in the market. These companies are very popular with individual traders: Tesla, Rivian, and Lucid were at the top of Fidelity’s list of most bought assets yesterday, Bloomberg reports.
Thing is, no one wants to miss out on the next Tesla. Musk’s EV company soared to a market cap of $1 trillion last month as enthusiasm over the auto industry’s electric pivot reached new heights.
It could go even higher. The new infrastructure bill devotes $7.5 billion to building a nationwide EV charging network, and a new BloombergNEF report showed that drivers will buy 5.6 million electric cars globally this year, double the number bought last year and representing almost 8% of all vehicles sold.—NF
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