In the first quarter of 2024, most EV stocks saw double digit declines, despite the S&P 500 rising 10%. The shift appears to be directly tied to slowing demand of EVs in U.S and China, impacting larger market players like Tesla (NASDAQ:TSLA) as well as small startups like Lucid (NASDAQ:LCID) and Rivian (NADSAQ:RIVN). However, other major automakers such as Ford (NYSE:F) have begun to shift their focus toward hybrid units, and car buyers appear to be following suit. For many investors, this certainly looks like a rotation trade that could have some legs, and it’s one that many are piling into.
Thus, this year’s price correction has highlighted many of the headwinds in the EV sector that are finally starting to hit these companies’ bottom lines. Let’s dive into why these three EV stocks could be doomed for more downside from here, particularly if the recessionary red flags we’re seeing right now turn out to be prescient.
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