Why Auto Stocks Dropped Like a Rock Today
High-growth companies in the auto space had a great run during the pandemic, but that's quickly crashing back to reality as interest rates rise and auto sales slow in 2023. Today was no different as electric vehicle (EV) stocks cratered and so did auto retailers.
Three of the biggest movers were Canoo (NASDAQ: GOEV), Hyzon Motors (NASDAQ: HYZN), and Carvana (NYSE: CVNA), which dropped as much as 8.3%, 9.9%, and 13.7% respectively.
The auto market went through a major speculative bubble from 2020 to 2022 and now it's time for companies to show they can build a sustainable business. The rubber is hitting the road, if you will.
Source Fool.com
