Governmental policy support and consequent investor optimism have propelled many electric vehicles (EV) stocks to fresh highs over the past year, making them some of the most talked about stocks in the Reddit WallStreetBets (WSB) chatroom. However, the global shortage of semiconductor chips and other raw materials makes the near-term prospects bleak for Reddit EV favorites Tesla (TSLA) and NIO (NIO). In fact, despite retreating from their highs, these two stocks still look highly overvalued. So, we think they are best avoided now.
Thursday, August 11, 2022