Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

EV Stocks Officially a Mania

December 23, 2020 By Jeremy Jones, CFA

By iQoncept @ Shutterstock.com

This probably ends poorly for those wagering their hopes and dreams on EV stocks. Not for nothing, but the number of new entrants in the space is off the charts. Doesn’t really give one confidence that there are high barriers to entry.

Dyson can attest to that, which is at least partly why the company dropped its electric vehicle efforts. They didn’t see enough room for differentiation.

Elon Musk likely recognizes that as well which is why he’s peddling auto-pilot software that, according to some independent analysts, isn’t as good as other products on the market.

Now you have Quantumscape which has some interesting potential battery technology, but potential is the operative word. The EV mania has pushed this company up to an almost $50 billion valuation. There’s no commercial product yet. Truly remarkable!

Al Root reports in Barron’s (abridged):

QuantumScape stock’s epic run continued Tuesday. Shares closed at $131.67, up another 39% after rallying 29% on Monday. The numbers are, to say the least, incredible.

Shares of the electric vehicle battery company have gained almost 80% this week and about 593% over the past three months. Both numbers aren’t really comparable to the returns of much else, including the S&P 500 and Dow Jones Industrial Average.

Figuring out what’s going on isn’t easy. Anecdotally, there isn’t a lot of stock to borrow. That means a short squeeze might be at play. Short sellers have to borrow stock to sell it short, betting on price declines. No shares to borrow can mean too many short sellers are already in the stock.

QuantumScape stock doesn’t appear to be heavily shorted, but it’ new and it’s possible short-selling data aren’t up to date. The merger that made Quantum a publicly traded player only closed in late November.

…

Whatever the reason, gains leave Quantum stock worth almost $59 billion based on the 448 million proforma shares outstanding after the company’s merger with a SPAC. QuantumScape wasn’t immediately available to get an updated share count.

That’s more than existing battery makers LG Chem(051910.Korea), Samsung SDI(006400.Korea), and Panasonic(6752.Japan). Contemporary Amperex Technology,or CATL, (300750.China) is valued at roughly $110 billion.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • More on the EV Stock Bubble
  • Coronavirus Infects Stock Market
  • This Rivals the Dotcom Mania
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Whether Through Audacity or Ignorance, Stock Fundamentals Are Being Ignored - January 19, 2021
  • Jim Simons’s Renaissance Technologies vs. Internet Forum Traders - January 15, 2021
  • Biden Plans to Spend Trillions More on COVID-19 Stimulus - January 14, 2021

Search Young Research

Most Popular

  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Do You Remember When NASDAQ Dropped by 82%?
  • The Power of a Compound Interest Table
  • Gavekal Chairman: Renewables Bubble is "Stupidest" Ever
  • The Highest Yielding S&P 500 Stocks
  • Don’t Be on Their Radar, Get Out of Debt Now
  • Overtaken By Nvidia, Intel Fires Bob Swan
  • There's Always a Way Forward for Americans Like YOU
  • Stocks: Are You Sticking Your Neck Out Too Far?
  • Democrats Eager to Get Back to Protecting the Rich by Ending SALT Deduction Cap

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • The Recklessness of Arnold Schwarzenegger
  • Warmongering Firestarters Victoria Nuland and Samantha Powers Back
  • Smith Family Robinson in Live Free or Die, NH
  • Dick Young’s Safe America: Chapter 1, Part I
  • RCY’s Brand New Investing Program – 100% Swiss
  • Swiss Francs, a Store of Value
  • Insurrection Was the Furthest Thing from Trump’s Mind
  • Who Are Those Urging Violence?
  • Are $2,000 Checks Going to Rebuild NYC?
  • An Alert for Warm Weather, Wine Loving Mavens.

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.