However, according to an evadoption report, the number of internal combustion engine (ICE (NYSE:ICE)) vehicles on the road is expected to increase by 20 million this decade. And even though the EV industry is expected to grow significantly, EVs are still likely to be a small percentage of vehicles in operation. So, as the EV industry grows, all companies in the sector may not benefit equally due to sector overcrowding.
EV-related stocks QuantumScape Corporation (QS), Blink Charging Co. (NASDAQ:BLNK), and EVgo, Inc. (EVGO) look overvalued at the current price level, given their companies’ bleak growth prospects. Also, analysts have recently downgraded them. So, we think it could be wise to avoid these stocks now.