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However, EV production continues to be hamstrung by the global semiconductor chip shortage, making the EV battery industry’s near-term growth prospects bleak. While governments have been taking steps to ameliorate the situation, and companies have been ramping up production to meet the growing demand for semiconductors, it is widely held that the current chip shortage will persist.
So, even though the EV battery industry could grow significantly in the long term, some stocks in this sector—for example pace, Microvast Holdings, Inc. (MVST), Romeo Power, Inc. (RMO), and Flux Power Holdings, Inc. (FLUX)—have seen the price of their shares outrun their intrinsic values. So, we think it could be wise to avoid these names now.
