Electric vehicle stocks are reeling after hot inflation print

Sep. 13, 2022 1:44 PM ETVicinity Motor Corp. (VEV), VMC:CABLBD, FUV, SPRU, LIDR, FFIE, EMBK, TSP, SEV, US10Y, US2YBy: Clark Schultz, SA News Editor10 Comments

The electric vehicle sector was down sharply in Tuesday afternoon trading along with the rest of the stock market in reaction to the hot inflation print.

August CPI came in hotter than anticipated with CPI Y/Y rising to 8.3% compared to the projected 8.1%. Core CPI Y/Y also rose to 6.3% versus the expected 6.1%. With the high inflation read, Fed Fund Futures are now pricing in a 20% chance of a 100 basis point Fed hike and an 80% chance of a 75 basis point rate hike. Interest rates jumped higher in reaction, with the 10-year Treasury yield up 7 basis points to 3.43% and the 2-year yield up 16 basis points. That all spells trouble for valuations on EV upstarts due to the cash flow discounting and the potential for higher debt loads.

Notable decliners included Faraday Future Intelligent (FFIE) -8.44%, AEye (LIDR) -7.14%, XL Fleet (XL) -6.97%, Blue Bird Corporation (BLBD) -6.75%, TuSimple (TSP) -6.85%, Embark Technology (EMBK) -6.70%, Arcimoto (FUV) -5.95%, Vicinity Motor (NASDAQ:VEV) -5.70%, and Sono Group (SEV) -5.70%.

Recommended For You

Comments (10)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.