After enjoying a torrid run in 2020, stocks of electric vehicle manufactures have gone into deep correction mode.
The leader of the space, Tesla Inc. /zigman2/quotes/203558040/composite TSLA -6.42% , is only up 1.2% so far this year; NIO Inc. /zigman2/quotes/204905836/composite NIO -11.19% is down 7.2%, while Vision Marine /zigman2/quotes/222822724/composite VMAR -3.10% , has cratered 44.6%.
That's in stark contrast to the oil and gas sector as legacy vehicle manufacturers, which are mostly enjoying a banner year.
General Motors /zigman2/quotes/205226835/composite GM -2.15% has rallied 29.6% YTD, red-hot Ford Motors /zigman2/quotes/208911460/composite F -3.67% is up a roaring 56.4%, while the oil and gas sector's favorite benchmark, the Energy Select Sector SPDR ETF (XLE), has gained 28.8%.
That said, the long-term EV outlook remains bright.
BNEF says 58% of all new vehicle sales will be the electric kind two decades down the line.
That might have appeared like a bad case of blue-sky thinking just a few years ago, but not anymore: The Biden administration has proposed spending heavily on EV infrastructure while the UK wants to ban gas-powered vehicles on its roads after 2030.
By Alex Kimani for Oilprice.com
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