As the struggle in the automotive sector has been increasingly intensifying of late, fundamentally weak stocks NIO Inc. (NIO), Lucid Group, Inc. (LCID), and Rivian Automotive, Inc. (RIVN) have struggled to maintain their profits. So, let’s delve into why these stocks might be avoided.
Hammered by inflation, automakers have been particularly sensitive to the blow because of their transformation plans. According to data from AlixPartners, cited by the Wall Street Journal, the auto industry plans to invest some $526 billion in Electric Vehicles (EVs) by 2026.
