Business & Investment

Rivian and Tesla may mark peak EV

When the CEO of Tesla (TSLA) sold the stock, the stock lost little of its $ 1 trillion market capitalization. Status. Rivian said it will postpone delivery of SUVs until the spring of 2020 at the earliest. RIVN’s share price is well below its 52-week high, but otherwise it remains.

Despite the delay in the sale, both companies may have marked the peak of electric vehicles.

Tesla’s insider sales are a danger signal for investors. They may have high taxes to pay. By selling shares, they are not affected by the decline in TSLA shares. Technology indexes are in the overbought area and valuations are priced against excessive growth over the next five years. In addition, the Federal Reserve keeps interest rates at unsustainable lows and still buys trillions of dollars in debt.

The market cannot handle excess cash liquidity. Investors need to allocate almost all cash to stocks because they have nowhere to go. When the Fed identifies inflation as permanent, this direction suddenly reverses. It can taper further and panic by raising interest rates faster than expected.

EVs are especially at risk of falling. Rivian sells very few models. We may not be able to offer more R1S pickup SUVs and R1T all-electric pickups than the market expects.

Rivian and Tesla may mark peak EV Rivian and Tesla may mark peak EV

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