After months of continuous, gradual growth for stocks across the electric vehicle industry, CNBC’s Jim Cramer believes the growth is about to end for most. The EV “bubble,” as Cramer refers to it, has “already started to burst,” with companies like Nio and Nikola preparing to see a plateau in their growth in the months to come.
The one exception to Cramer’s claim, Tesla, has seen its stock grow four times its size since March, and the company has enjoyed a very fruitful Q2, even amid concerns of COVID-19.
Nikola, on the other hand, sunk 17% after debuting its earnings according to Business Insider, signaling a major misfire in its future financial goals.
Cramer went on to say, “The bull market in Tesla is real and it’s spectacular.” He continued, “The bull market in the rest of the electric vehicle plays feels way less substantial, and once again I’m warning you to stay away, no matter how awesome it seems.”
Cramer, who hosts the segment “Mad Money,” a show geared towards stockholders and others looking into investing, made the claim on Tuesday, as the business world began to shift gears in preparation for Q3.
Although many alternative EV companies like Nio and Nikola have garnered attention from investors and stockholders, they’re still a long ways away from profitability, according to Cramer. As the EV market ramps up year after year, Tesla is set to continue its path of growth, while the future of other EV companies is significantly less clear.
