This post was originally published on this site
A worldwide semiconductor chip shortage is expected to stifle the EV industry’s growth prospects because several players intend to drastically reduce output and close down factories temporarily. Furthermore, intense competition in the EV space as dominant automakers increase their EV investments to capitalize on the industry tailwinds could mar the growth of smaller players.
Thus, we think investors should avoid Fisker Inc. (FSR) and Lordstown Motors Corp. (RIDE), which were recently downgraded by analysts at Bank of America, given these companies’ weak fundamentals and negative earnings growth potential.
