Electric-vehicle stocks have charged higher in 2020, with investors enthusiastically buying into the revolution that is disrupting the automotive industry.
The potential is real, but the stocks appear to be getting ahead of themselves. Many of the companies surging higher have yet to generate any meaningful revenue, and even those that are selling products are trading at very un-auto-like valuations.
Some of these companies will turn into long-term success stories, but for now the stocks look frothy. Here is why three Fool.com contributors are avoiding buying QuantumScape (NYSE:QS), ElectraMeccanica Vehicles (NASDAQ:SOLO), and Tesla (NASDAQ:TSLA) heading into 2021.
This battery stock is overheated
Lou Whiteman (QuantumScape): I’m a current QuantumScape shareholder, so it might sound strange for me to advise others to avoid it. Bottom line up front: I love the potential for this company, but I can’t