On Wednesday, market analyst Investor Place released a report depicting investor sentiment towards electric vehicle (EV) stocks across the globe, most noticeably showing a slowdown in Tesla’s EV stock movement. The financial research firm noted that high production costs – which inevitably cause high price tags – have decreased consumer purchases, consequently leading to investor indifference.
EV manufacturer Rivian receives investment from US retirement funds
However, The California Public Employees’ Retirement System’s (CalPERS) recent investments in several EV companies have sparked investor interest, indicating a dynamic landscape. The EV startup Rivian (RIVN.O) has received the highest investment so far, with seven other pension schemes attempting to cash in, including The Teacher Retirement System of Texas and the Maryland State Retirement and Pension System.
Funds based in Utah, Colorado, North Carolina, and Wisconsin have inputted sizable investment into EV stocks, according to fund tracker WhaleWisdom. Reports suggest that this input will last until 31 December and hopes to bring larger scale profit for retirement funds across the United States.
Tesla CEO Elon Musk predicted bankruptcy for Rivian in 2022; however, Rivian’s CEO, RJ Scaringe, adopted a no-hold-bar perspective for EV production, despite Musk’s demoralising comment.
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After exiting an exclusive deal with Amazon’s delivery network, Scaringe has defied the odds and broadened its commercial electric vans market, particularly through the cost-cutting and competitive pricing of the R2 mid-sized SUV line. Despite trading above its 52-week low of $11.68, the 14-day RSI suggests an upward trajectory and perhaps encouragement for investor opportunities.
The Wall Street Journal reported in October 2023 that luxury EVs are particularly struggling to find buyers. Surprisingly, this trend extends to the used EV and plug-in hybrid vehicle market, prompting investors to reevaluate the wisdom of investing in EV stocks as the year concludes.
