Without a doubt, electric vehicles (EV) will soon dominate the automotive industry as they progress to become the future of automobiles.
We have progressed from nascent technological development to the pursuit of the commercialisation of EVs and their supporting infrastructure.
Such advancements have even resulted in notable names such as Tesla Inc. (NASDAQ: TSLA) becoming the bellwether of stock indexes.
Amidst the bright outlook, we pause to question if our excitement over EV’s potential has driven valuations of such companies to irrationally-high levels.
To determine this, we look at the share prices of several EV players.
Many of these companies’ share prices have plummeted from a year ago.
For example, NIO Inc. (NYSE: NIO) fell by 55.9% and XPeng Inc. (NYSE: XPEV) plunged by a whopping 74.5%.
In comparison, the NYSE Composite only dipped by 3.1% over the same period....
