Lucid and Rivian down. IV bubble fatigue?
Yesterday was not a good day for companies born out of nothing to produce electric cars. Let's start with one we haven't talked about much, Lucid Motors, which, with just 2,000 employees and a turnover of less than 30 million in 2019, is practically worth as much as Ford:
Yesterday it lost a substantial 5%, holding its 5-day gains, in the wave of Rivian's growth, to 28%. however there is also the same Rivian who yesterday lost a substantial 15% in a single session
Of course, the increase in the value of the company in the previous 5 days is still impressive, in the order of 28%, but, in any case, the most avid or crafty investors decided it was time to start making up the bundles and have lightened the locations. It means that the value, even in perspective, was not exactly aligned with what the stock exchange said, that is, to put it more simply, there was a lot of speculation and a bubble effect.
It is not certain that this effect will appear completely or immediately: Tesla yesterday gained a 3%, even if it is still very far from the highs reached before the sale of Elon Musk and family. However, someone has obviously already earned a lot and has decided that it is time to take a hat and greet those present. Bubbles are a great time for those who love speculation, but, of course, the trick is to get out early. Otherwise you risk having to wait for the rosy prospects to come true, that is, maybe years. If they come true.
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The article Lucid and Rivian in decline. IV bubble fatigue? comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lucid-e-rivian-in-calo-stanchezza-della-bolla-ev/ on Thu, 18 Nov 2021 12:03:59 +0000.