Electric Vehicle Maker’s Stock Price Tanks to All-Time Low After Painful News
Electric Vehicle Maker’s Stock Price Tanks to All-Time Low After Painful News
Climate alarmists’ dream of an electric vehicle-dominated world has devolved into a nightmare as several EV companies slash production targets amid the crippling inflation emblematic of Joe Biden’s presidency.
In the latest debacle, California-based Fisker Inc. cut its 2023 production forecast to 13,000 to 17,000 vehicles from its prior projection of 20,000 to 23,000, Reuters reported.
The announcement caused Fisker stock to plunge more than 24 percent on Tuesday to an all-time low of $3.11 a share. The stock then rallied a bit before closing at $3.34, down 18.9 percent from Monday’s closing price of $4.12.
This is a stark contrast to Fisker’s all-time high stock price of $32, reached in March 2021.
The company’s revised production estimates led Wall Street analysts, including Barclays, Evercore and Cowen, to slash their price targets.
“The median price target of the 14 analysts covering the stock is $6.50, down from $8 a month ago,” Reuters reported.
CFRA Research analyst Garrett Nelson, who chopped his 12-month price target from $2 a share to $1, said Fisker’s production snag “raises major questions and is likely to add insult to injury for one of the market’s most highly-shorted names.”
Fisker joins a growing legion of electric car makers — both large and small — that are struggling in today’s crushing economic environment.
On Tuesday, EV company Canoo slashed its spending plans for the second half of 2023 by more than 50 percent, citing a plunge in sales.
Last week, Lucid Motors cut its 2023 production goals after suffering losses in the third quarter.
Would you ever purchase an electric vehicle?
- Yes
- No
In October, General Motors reduced its own production goals, citing dwindling demand.
In September, Ford halted construction on a $3.5 billion EV factory in Michigan, citing concerns that it might not be profitable.
Morning Consult analyst Julia Martinez said EV demand is muted — despite federal tax credits of up to $7,500 incentivizing purchases — because they’re too expensive for most people, especially amid today’s punishing inflation.
“While consumers still have plenty of concerns surrounding an EV’s battery range, price remains the higher priority when purchasing an EV,” Martinez wrote in a September report.
“Making an expensive, long-term investment by purchasing an EV, even with the help of a tax credit, is still a major commitment in today’s inflationary market.”
The EV industry has been plagued by countless, well-documented reports of:
- Recharging nightmares.
- Limited towing capacity.
- Cold-weather malfunctions.
- Spontaneous battery fires.
There are many people who love their electric cars. That’s great, but the federal government should not intentionally destroy the oil industry and erode U.S. energy independence to force Americans to switch to EVs.
Biden has repeatedly vowed to transition the U.S. away from oil in favor of so-called green energy alternatives that supposedly combat “climate change.”
However, the market has spoken, and the message is clear: EVs are not replacing gas-powered cars anytime soon.
The post Electric Vehicle Maker’s Stock Price Tanks to All-Time Low After Painful News appeared first on The Western Journal.
How has the recent surge in inflation affected the profitability and production targets of electric vehicle manufacturers?
Seen as too expensive, have limited range, and lack sufficient charging infrastructure. She also noted that the high price of EVs compared to traditional gas-powered vehicles is a major deterrent for many consumers.
Furthermore, the recent surge in inflation has only exacerbated the challenges facing the EV industry. The soaring prices of raw materials, such as lithium and cobalt, which are essential components of electric vehicle batteries, have put additional strain on EV manufacturers’ profitability and ability to meet production targets.
The Biden administration’s ambitious climate agenda, which heavily promotes the transition to electric vehicles, has also faced significant setbacks. The promise of a green future dominated by electric vehicles seems increasingly distant as companies struggle to meet demand and deliver on their projections.
The stock price downturn of electric vehicle makers, such as Fisker and Canoo, reflects the growing concerns and challenges facing the industry. Investors and analysts are revising their price targets, signaling a lack of confidence in the ability of these companies to navigate the current economic and market conditions.
Despite these setbacks, it is worth noting that electric vehicles still have significant potential. Many major automakers, including Tesla, General Motors, and Ford, continue to invest heavily in EV production and development. Governments around the world are also implementing policies and regulations to encourage the adoption of electric vehicles and expand charging infrastructure.
However, the recent struggles of various EV companies highlight the need for a realistic and sustainable approach to the transition to electric vehicles. It is crucial for companies to carefully manage their production targets, ensure the availability of necessary resources, and address the concerns of consumers, including affordability, range anxiety, and charging infrastructure.
Overall, the electric vehicle industry is at a crucial crossroads. While the recent stock price plunge and production cuts are certainly setbacks, they also provide an opportunity for reflection and a reevaluation of strategies. It is essential for the industry to address the challenges at hand and work towards creating a sustainable and successful future for electric vehicles.
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