CLICK HERE to sign up for Hedgeye University FOR FREE
This morning on The Call @ Hedgeye, Industrials analyst Jay Van Sciver spoke with Hedgeye CEO Keith McCullough about the EV market and why he believes downside remains for companies like Nikola (NKLA) and Lucid (LCID), despite their recent bear market rallies.
“Somebody like a Nikola, or a Lucid, really doesn’t have the niche that they’re going to win,” Van Sciver explained. “It’s a very narrow market for their vehicles, it’s very hard to get scale, and it’s very competitive into the market. I think a lot of these will end up going bankrupt.”
“Yesterday was a flow trade, it’s a basket trade,” McCullough responded. “You’ve got Goldman’s most shorted basket, Nikola is in that basket, and it’s up 10% in 2 days. It has nothing to do with your research, it has everything to do with the positioning, and that’s when you take advantage of it.”
For info on subscribing to Industrials Pro CLICK HERE
(This clip is a small taste of what our subscribers get each day on The Call @ Hedgeye. In a nutshell, The Call is our morning research call hosted by Hedgeye CEO Keith McCullough with our 40+ analyst research team. It helps small and large investors alike make better decisions via unique and investable stock/sector updates CLICK HERE to learn more.)