November 30, 2020
The broad stock market (S&P 500) finishes the month of November up 11%.
Among the biggest movers for the month have been those companies that would benefit from the Biden economic plan, which outlines a wholesale transformation of the economy, to clean energy.
Within that bunch of clean energy stocks, electric vehicle stocks have been the favored bet. None have been more favored than Tesla. Telsa was up as much as 52% for the month. At the close today, the stock is up 584% on the year.
Let's take a look at six publicly traded electric vehicle companies that are fighting for market share.
Lordstown …
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Nikola … |
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Fisker … |
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Nio Inc. … |
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Li Auto … |
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X Peng … |
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As you can see, these stocks have all soared since election day. That’s on the underlying bet that Biden will make good on regulating away the oil industry. But given these charts, I think it’s fair to say, the risk to the presumed election outcome is being priced at zero (zero risk). I suspect it’s higher than that – maybe a lot. With that, Tesla has a key reversal signal today (an outside day, circled below). That’s worth paying attention to … |
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