Financial bubble may emerge in the electric car market

Financial bubble may emerge in the electric car market

November 28, 2020 0 By autotimesnews

This economic term best describes the situation in the market of battery machines. This fact was pointed out by Bloomberg experts.

The agency is confident that this promising segment of the car market, which is actively developing today, has many reasons for disappointment. Many new brands and electrical startups are not making good revenue today.

So, in America, three forms from China – Nio, XPeng and Li Auto – cannot call themselves profitable at once. At the same time, the total capitalization reaches an impressive $ 154 billion. Together, they have produced less than 30,000 electric cars in three months.

In comparison, this is only one percent of the volume of products that Volkswagen deals with. This, by the way, did not prevent Nio shares from jumping in price by 1235% at once.

Tesla, on the other hand, boasts a record value of $ 0.5 trillion! This is 250 times the expected revenue for this year.

And such an imbalance, albeit in a much smaller volume, is typical for many electric vehicle manufacturers.