Why Electric Vehicle Stocks Plunged This Week

After some positive trends in the EV market, particularly in China, stocks fell sharply this week after earnings were released. It's clear the profitability some investors had hoped for isn't coming soon.

According to data provided by S&P Global Market Intelligence, shares of Li Auto (NASDAQ: LI) fell as much as 13.8% this week, Nikola (NASDAQ: NKLA) dropped 15.2%, Polestar Automotive (NASDAQ: PSNY) was down 15%, and Blink Charging (NASDAQ: BLNK) outperformed the group, only falling 9.1% at its low. The stocks are down 13.3%, 14.9%, 14.3%, and 8.6%, respectively, for the week as of 2 p.m. ET on Friday.

The biggest news came from Li Auto, which reported vehicle sales of $5.9 billion in the third quarter of 2024 and a vehicle margin of 20.9%. Total revenue jumped 24% from a year ago to $6.1 billion and beat the $5.9 billion that analysts were expecting, and earnings of $0.38 per share also topped estimates.

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Source Fool.com