Investor Jim Kramer: “The EV startup bubble is about to burst. Except Tesla “

Investor Jim Kramer: “The EV startup bubble is about to burst. Except Tesla “

August 8, 2020 0 By autotimesnews

Well-known investor Jim Kramer, skeptical about the electric car market, believes that the shares of almost all startups there are greatly overvalued. Everyone except Tesla, although until recently he was skeptical of Elon Musk. Kramer believes that it is not worth investing in EV companies, despite the trend of rising prices for their shares – this is a bubble that will burst soon.

The excitement around the stocks of companies producing or promising to produce electric cars is coming to an end after prices have inflated to unreasonably high levels, according to investor and host of the show “Mad Money” Jim Kramer. With one exception – Elon Musk’s Tesla.

“I think the rest of the EV space looks like a boom, even more like a bubble that is already starting to burst,” he said. “We are seeing more and more of them go public … and after certain steps up, their shares start to burst.”

The electrical segment of the automotive industry is fueled by growing consumer demand for green products. The International Energy Agency predicts that there will be 125 million electric vehicles on the roads by 2030. Investors shower EV startups with money, and their stock prices go up. This year they have increased by 255%, writes CNBC.

According to Kramer, who was once skeptical of Elon Musk, investors are trying not to miss the chance to invest in companies that could become the next Tesla. However, most of them do not have any business that could justify such a high cost. As an example, he cites the Nikola startup, which promises to release a hydrogen electric truck next year.

“In other words, most of the price here is in the idea, in the concept, and that just can’t justify Nikola’s recent estimated cost of $ 25 billion or even the $ 14 billion that the startup is now worth,” Kramer said. – I don’t know what people expect. They don’t even have any product yet. “

While some analysts point to Nikola as Tesla’s first serious competitor, Kramer disagrees.

“The bull market for Tesla is real and it’s amazing. The bull market for the rest of EVs feels a lot less real, and again, I advise you to stay away from it, no matter how attractive it looks, ”said Kramer.

At the same time, the analyst spoke very categorically about the prospects for fossil fuels in the spring – the oil and coal were finished, they were finished. In his opinion, everything now rests against the benefit or harm to the environment. Young people do not want to own shares in companies that are involved in environmental pollution.