It appears the golden age of EVs is coming to an end in 2024. After surging for years, EV sales stalled in the first quarter. The blockbuster IPOs that were commonplace in 2021 are now few and far between, with Renault scrapping plans to take its subsidiary Ampere public in January amid cooling electric-vehicle demand. And once-high-flying EV startups are struggling as well. Rivian Automotive has seen its stock tumble more than 90% since its IPO in November 2021, while fellow EV darling Lucid Group saw its shares plunge 95% over the same period.
Meanwhile, the oil and gas industry is moving in the other direction. Crude production hit a record high in the U.S. last year and isn’t showing any signs of slowing. The Vanguard Energy Index Fund ETF, which tracks oil and gas stocks, has surged more than 17% over the past twelve months—compared to a mere 5% rise in the Global X Autonomous and Electric Vehicles ETF, which tracks EV-linked equities. And since the start of 2023, there have been more than $250 billion in high-stakes deals in the oil and gas industry.
