Owing to the impressive stock market performance of many EV stocks over the past year irrespective of fundamental strength, the industry has caught the eye of Reddit chatroom WallStreetBets (WSB). The Reddit forum has been trying to precipitate another Gamestop (GME)-like short squeeze. The relative overvaluation of the industry has led to potential asset bubble concerns because most companies are currently trading significantly higher than their revenue and earnings potential would imply.
Tesla, Inc. (TSLA) and NIO, Inc. (NIO), two popular EV players, are found frequently in the Reddit forum’s top 10 dashboard. These stocks are now losing momentum after an impressive rally over the past year. Their overvaluation and the dour expectations of Wall Street analysts about their growth prospects make them best avoided now.