- EV stocks had a great year in 2020, but investor attitudes can change quickly.
- Insider asked two experts to name the biggest threats to EV stocks in 2021.
- Their answers included botched vehicle rollouts, a shift toward value stocks, and less day-trading.
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Though electric vehicles still represent a tiny percentage of the global automotive market, the stock prices of EV companies took off in 2020.
Tesla saw its share price rise by more than 700% over the course of the year, while Nio jumped by over 1,000%. Meanwhile, a number of EV startups went public (many of them through a wave of SPACs some worry could produce the next dot-com bubble) and quickly started trading above established competitors like Ford and Nissan.
Investors haven’t lost that optimism this year so far, but attitudes can change quickly. Insider asked David Whiston, an analyst at Morningstar who covers the auto industry, and Joseph Fath, the portfolio manager for T. Rowe Price’s US growth-stock strategy, to list the biggest threats to the stock prices of EV companies this year.
Here’s what they said.