The auto industry has been under pressure due to several headwinds, such as supply chain constraints, stubborn inflation, the Fed’s rate hikes, and the high prices of raw materials. Auto sales were disappointing last year as vehicle sales dropped to their lowest level in more than a decade in the United States.
Although auto sales are expected to return to pre-pandemic levels this year, it could be wise to steer clear of fundamentally weak auto stocks NIO Inc. (NIO), Lucid Group, Inc. (LCID), Rivian Automotive, Inc. (RIVN), and Workhorse Group Inc. (WKHS). Before discussing the fundamentals of these stocks, let’s explore why the auto industry is under pressure.
