It would take a brave man to reach the top of the bubble after 11 years of shares in absolute decline, but for the first time, it seems that FT Alphaville may have hit the nail on the head.
Just over a month ago, we published a live worksheet detailing all electric vehicle stocks – and related technologies – listed on global stock markets. Without exception, they were all tearing up in unison – doubling, tripling and quadrupling as their market capitalizations were completely separate from the underlying finances.
What was driving was not entirely clear.
Maybe it was King Stonk Tesla’s outspoken return, or optimism about government-driven renewable energy capital expenditures, or maybe it was just the good old “I want to get rich fast” energy
Well, it seems, this speculative energy is not as renewable as that which these stocks hope to profit from.
In general, almost all charging, EV and battery companies that have a lot of hope and few profits have fallen by more than 20% from their historic highs. Bear market territory.
In fact, the changes have been so violent in the past month that most names are now behind traditional automakers. Ford, that dinosaur almost a century old, has even surpassed the Tesla in the past three months, perhaps driven by an almost universal love for its new electric car, the Mach-E.
Looking at the numbers in the pre-market, it doesn’t look like it will improve, or at least not for now. Tesla fell nearly 8%, to $ 661; Spac Churchill Capital Corp IV, which just announced an agreement to bring Elon’s rival Lucid Motors to the public, it fell by almost 40%. Once the clock arrives at 2:30 pm UK time, there will be little doubt that the sale will swallow the rest of the names listed on Nasdaq. European stonks are saying this, with the names of Alfen, Compleo and Fastned falling 8.2 percent, 12.2 percent and 5.8 percent respectively.
Remember, however, just as it is almost impossible to call a top until after the fact, so does a bottom. Geronimo!