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Aug. 12, 2021, 6:58 a.m. EDT

Peak Gasoline Demand Forecasts Aren't Scaring Big Oil

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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

COMTEX_391442559/2559/2021-08-12T06:57:52

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 1,014.97
-69.63 -6.42%
Volume: 30.77M
Dec. 3, 2021 4:00p
P/E Ratio
328.64
Dividend Yield
N/A
Market Cap
$1089.23 billion
Rev. per Employee
$445,694
loading...
/zigman2/quotes/204905836/composite
US : U.S.: NYSE
$ 32.15
-4.05 -11.19%
Volume: 106.37M
Dec. 3, 2021 4:02p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$59.31 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/222822724/composite
US : U.S.: Nasdaq
$ 5.62
-0.18 -3.10%
Volume: 100,770
Dec. 3, 2021 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$48.13 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 59.71
-1.31 -2.15%
Volume: 19.60M
Dec. 3, 2021 4:00p
P/E Ratio
7.98
Dividend Yield
0.00%
Market Cap
$88.59 billion
Rev. per Employee
$790,226
loading...
/zigman2/quotes/208911460/composite
US : U.S.: NYSE
$ 19.14
-0.73 -3.67%
Volume: 120.28M
Dec. 3, 2021 4:02p
P/E Ratio
26.41
Dividend Yield
2.09%
Market Cap
$79.41 billion
Rev. per Employee
$683,570
loading...

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