The electric vehicle (EV) industry continues to be negatively affected by the global semiconductor chip shortage. However, many semiconductor companies are ramping up their production to meet the rising…
demand for chips, supported by government and private investments.
EVs are expected to dominate the automotive market of the future as governments worldwide implement policy measures to support the industry’s growth. According to a SpendEdge report, the EV market is expected to grow at a 20.4% CAGR between 2021 – 2025.
But the industry is overcrowded with new entrants vying for market share. And the shares of many of these companies have soared in price based solely on investor optimism over the industry’s growth prospects. But EV stocks Canoo Inc. (GOEV – Get Rating), Lordstown Motors Corp. (RIDE – Get Rating), and Arcimoto, Inc. (FUV – Get Rating) currently possess high short interest. While this indicates that institutional investors are bearish, retail traders might target them and trigger a short squeeze. So, it could be wise to now add these stocks to one’s watchlist.
GOEV is a mobility technology company that designs, engineers, develops, and manufactures EVs for commercial and consumer markets in the United States. In addition, the Torrance, Calif.-based company offers B2B delivery vehicles, multi-purpose delivery vehicles, and lifestyle vehicles using skateboard architecture technology. Of the company’s floating shares, 32.2% have been sold short.
Several law firms filed a class-action lawsuit against GOEV and certain of its officers on behalf of shareholders who purchased or otherwise acquired its securities between August 18, 2020, and March 29, 2021. They allege that the company issued a series of false and misleading statements to investors and failed to disclose several facts concerning its merger with Hennessy Capital.
GOEV’s loss from operations increased 426.8% year-over-year to $104.35 million for its fiscal second quarter, ended June 30, 2021. Its total assets decreased 5.6% sequentially to $711.52 million, while its net loss increased 384.3% year-over-year to $112.55 million. Also, its loss per share came in at $0.50, up 78.6% year-over-year.
The company’s revenue is expected to increase 1,860.8% year-over-year to $50 million in its fiscal year 2021. However, analysts expect GOEV’s EPS to decrease 77.8% in the current year. The stock has lost 44.4% in price over the past six months to close yesterday’s trading session at $7.72.
Lordstown, Ohio-based RIDE develops, manufactures, and sells Endurance, an electric full-size pickup truck for fleet customers. The percentage of the company’s floating shares that have been sold short totals 31.5%.
Several law firms launched an investigation into RIDE due to…
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