The Unstoppable Electric Vehicle is a Defining Moment for US Car Sellers

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The US-based automakers are being targeted particularly, as the day-trading community is focusing on zeroing the equities with exposure to the revolution in the electric vehicle.

According to the data provided by Vanda Research, retail investors have invested in buying $448 million in shares of Ford Motor Co and Lucid Group Inc. over the past month. This surging demand is currently proven to surpass that of Tesla Inc. The interest and preference of individuals have shifted recently from Chinese companies Nio Inc. and XPeng Inc. to electric vehicles due to this increase in demand.

According to a Reuters study, global automakers intend to spend more than half a trillion dollars on electric vehicles and batteries by 2030, ratcheting up investments aimed at weaning car purchasers away from fossil fuels and fulfilling increasingly stringent decarbonization targets.

The accelerated flows from retail investors have rippled across the electric vehicle landscape to smaller businesses, with Pioneer Power Solutions Inc., EVgo Inc., and ChargePoint Holdings Inc. experiencing higher demand on Fidelity’s platform. In recent weeks, the demand for Lucid and Ford has been among the most prominent purchased stocks, while Tesla holds to be one of the most purchased assets in recent days.

On Wednesday, such bets are under pressure. At the opening in New York, Tesla was down 1.7 percent, Lucid fell 3.3 percent, and Ford dropped 1.5 percent.

The surge in retail demand originated ahead of the launch of Rivian Automotive Inc., which is funded by Ford and Inc. In the largest initial public offering of the year, the business is expected to begin trading on Wednesday after amassing $11.9 billion.

With swimwear retailer Naked Brand Group Ltd. signing a stock-for-stock deal to purchase EV technology business Centro Automotive, the electric vehicle technology fever has attained meme stock status. The penny stock went up 6 percent after the news, but it’s still down 54 percent from its January peak.

Analysts at Vanda Research have noticed a spike in demand for solid-state battery makers like QuantumScape Corp., as well as charging stocks like ChargePoint and Blink Charging Co. According to Vanda’s Ben Onatibia and Giacomo Pierantoni, retail investors are anticipated to diversify away from Tesla.

As per the report by experts, the demand for EV stocks is expected to increase further, with the adoption of the so-called reconciliation bill, which would, among other things, give measures to address climate change. “The soft infrastructure package contains the majority of the tax incentives for EVs and green energy,” as per the claims by pair.