Are Electric Vehicle Stocks Overhyped?
The excitement around electric vehicle stocks is palpable. From Rivian (NASDAQ: RIVN) at a $76 billion market cap with no revenue to Tesla (NASDAQ: TSLA) breaching a $1.1 trillion market cap when it was valued under $100 billion less than three years ago, many investors are bullish on the opportunity in electric vehicles.
And why wouldn't they be? The industry is growing quickly, up 26% year over year from 2020, and is going after a gigantic market opportunity in the worldwide car market. But just because these stocks are in a large, growing industry doesn't mean they will be great investments over the next decade. Just ask Cisco Systems investors who bought stock in 1999 and 2000.
Are electric vehicle stocks overhyped? Yes. Let me explain why.
Source Fool.com
