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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.”

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