As a high-growth, risk-on sector, companies that are in the business of producing electric vehicles (EVs) had an extremely challenging year. Tesla (TSLA:US), the world’s largest EV maker, lost two-third of its market shares’ value in 2022 - its biggest annual drop ever.
Smaller companies recorded an even worse performance. Rivian (RIVN:US) shares lost just over 80% in 2022 after closing at $18.43 per share. The US-based EV maker went public in November 2021 and traded as high as $179.47. Lucid Group (LCID:US) also saw its shares fall by over 80%.
Similarly, the three biggest China-based startups - Nio (NIO:US), XPeng (XPEV:US), and Li Auto (LI:US) also witnessed a sharp plunge in their shares as the rising interest rate environment weighed on their valuations. Moreover, these companies suffered from supply issues as China fought several significant Covid-19 outbreaks.
Hence, practically all investors who invested in EVs in 2021 and 2022 suffered steep losses. Several Congress members were attempting to find a bottom in Tesla shares as the stock plunged nearly 70% from September 2021.
As far as China-based EV startups are concerned, Congressman Tom Suozzi was investing in Nio in Q4 of 2020 when the stock was trading in the region of $20 per share. Nio stock closed the year at $9.75.