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The battered electric vehicle (EV) sector needed a stock market win, and it got one on Monday. Many EV companies saw their stock prices rise that day thanks to good news from their companies. Among them were some of the leading players in this field. tesla (NASDAQ:TSLA)an increase of almost 4%. S&P500 The index fell 0.4%.
Li Auto falls below expectations in 4th quarter
A major Chinese EV manufacturer delivered goods at the start of the business week. lee auto, reported fourth-quarter results that morning. Fortunately for everyone who has invested in or has been involved in the EV sector, Li Auto has managed to significantly improve its earnings and exceed analyst earnings forecasts following a surge in vehicle shipments. did.
This helped ease any lingering pain from Tesla’s own fourth-quarter results. Investors in US companies won’t be happy to be reminded that the EV king missed out on both sales and bottom line profits. The former was up just 3% year-on-year, while the latter was down an unpleasant 40%.
This, combined with slowing overall EV sales growth, has made investors bearish on the industry as a whole.
Buyer, please be careful
That sentiment was reversed with Li Auto’s numbers. Perhaps the optimism that has supported EV stocks in the past is returning.
But I don’t think this will lead to a long-term rally. Even after the recent downturn, valuations for Tesla and more popular EV stocks remain high, but in my opinion, the decline in growth prospects doesn’t justify it. One company’s performance, impressive as it may be, is not enough to make this expensive sector attractive again in the long term. However, that could change if other EV makers deliver big earnings surprises.
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Eric Volkman has no position in any stocks mentioned. The Motley Fool has a position in and recommends Tesla. The Motley Fool has a disclosure policy.
Why Tesla stock is up nearly 4% today The original article was published by The Motley Fool
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