Having been strongly in favor during 2021 and 2022, stocks across the electric vehicle (EV) supply chain have faltered in 2024, as the previously inexorable-seeming EV transition appears to have hit a bump in the road. Two years ago, the favorable backdrop for stocks across the EV ecosystem gave rise to inflated valuations. Since then, however, valuations have declined significantly as growth expectations have been tapered back, interest rates have risen, margins have come under pressure, and earnings estimates have been revised down accordingly.
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