EV stocks have been rallying, but how long can it last? (Video)

let's put Nikola aside because you probably brought up a good point that it does feel like there is this enthusiasm once again around EVS when you think about what's been happening with Tesla as well sure there was that announcement with a partnership with GM as well as before but is there a bit of fomo trade happening I mean you talk about AI is one yeah EVS so I I think we've seen waves of that you know to be honest um I think we're kind of seeing some nice movement in the stock prices you look at Ford over the last couple days you know going from you know recently between 11 and 12 over 14 closing in on 15. uh you know my my concern here just trying to capture the conversation we had earlier too is you know if rates do go higher that means borrowing costs are higher that's another headwind for automotive loans right because they will take higher too so the the whole thing that's fascinating to me is is the real transformation in this industry where everybody right you know Ford GM stalantis Ferrari Volkswagen they're all leaning into this EV transition and there are reasons for it and you know including some um at least here in the states some tax credits they're helping Foster you know EV adoption right there's some um you know EPA regulations and all and all this other stuff that are going on so the industry is moving that way uh I just think that you know it's possible that it might take a little longer than expected to hit some of these forecast numbers that are out there and at the same time right you have to ask yourself okay companies are spending and investing to do this but if we do see a Slowdown because of higher borrowing costs what does that mean in the near term for their profit picture but to pick up on that point about the higher borrowing cost me you're talking about tech earlier I mean we saw these stocks get hit at the start of the rate hiking cycle right the expectation was that these companies aren't necessarily profitable that profitable they've got a lot of debt these are the companies that are going to get hit as a result of higher rates and yet it feels like we're kind of back to where we were before that in terms of the enthusiasm sure in Tech you can talk about AI specifically but Evie I mean the growth has been happening why now why are we seeing this kind of I think I think you gotta you know kind of differentiate right so there are some larger established players like the ones that I mentioned for GM and then there's the the ones the rivians the Nicholas and the like and it's very simple you can't churn out what would we hear 10 20 Vehicles right and you know that's not going to cover the cost of your operation so I I think there's a reason that some of these stocks are down towards the bottom but I also think though too if you look at the automotive industry from a structural perspective it really tends to solidify around you know a handful of players and again if you take another look at it you know you look at consumer electronics or some others you know the vast majority of market share tends to be concentrated around again a handful of players will all of these companies make it probably not I I feel like the nickel apart is more meme than anything else right I mean it does feel like it's it's interesting to me that the meme stock Rays has persisted in different ways it's more like little flare-ups of these individual situations and short squeezes perhaps for example Nikola something like 20 of its float is shorted um so but I don't know how much at one point it felt like investors needed to pay attention to it to some degree other investors who weren't part of it now it feels like you can kind of ignore it I don't know it could very well be people are just looking for a quick trade too yeah