3 Electric Vehicle Stocks with High Short Interest
StockNews
Published Sep 03, 2021 12:19PM ET
Updated Sep 03, 2021 01:30PM ET
3 Electric Vehicle Stocks with High Short Interest
Even though the current semiconductor chip shortage poses a significant challenge to the EV industry’s growth in the near term, the industry is expected to achieve solid growth in the coming years fueled by governments’ support worldwide. However, several fundamentally weak stocks in the industry have gained in price based solely on investors’ optimism about the EV industry. So, we think it could be wise now to watch EV stocks Canoo (GOEV), Lordstown (RIDE), and Arcimoto (NASDAQ:FUV), which possess high short interest. Let’s discuss.The electric vehicle (EV) industry continues to be negatively affected by the global semiconductor chip shortage. However, many semiconductor companies are ramping up their production to meet the rising demand for chips, supported by government and private investments.
EVs are expected to dominate the automotive market of the future as governments worldwide implement policy measures to support the industry’s growth. According to a SpendEdge report, the EV market is expected to grow at a 20.4% CAGR between 2021 - 2025.
But the industry is overcrowded with new entrants vying for market share. And the shares of many of these companies have soared in price based solely on investor optimism over the industry’s growth prospects. But EV stocks Canoo Inc. (GOEV), Lordstown Motors Corp. (RIDE), and Arcimoto, Inc. (FUV) currently possess high short interest. While this indicates that institutional investors are bearish, retail traders might target them and trigger a short squeeze. So, it could be wise to now add these stocks to one’s watchlist.
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