(Bloomberg) — Gone are the days of starry stock market debuts that sent valuations of electric-vehicle makers soaring. Now, floating an EV stock is only for the brave.
A torrent of bad news for the sector this week confirms how far it has fallen in just a few years. First Renault SA scrapped an initial public offering of its EV and software arm Ampere citing valuation concerns. Then, Bloomberg reported Volkswagen AG has put efforts to seek outside investors for its PowerCo battery unit on the back burner.
It’s a sharp turnaround from the heady days of the pandemic when investors were clamoring for exposure to the growing sector.
Up-and-coming firms like Rivian Automotive Inc. and Vietnam’s VinFast Auto Ltd. once surpassed more established rivals like General Motors Co. by valuation. Rivian’s value hit $153 billion at one point. Now analysts are slashing their earnings forecasts for the EV sector as sales growth slows.
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