We recently published a list of Why These 15 Electric Vehicle Stocks Are Plunging in 2025. In this article, we are going to take a look at where REE Automotive Ltd (NASDAQ:REE) stands against other electric vehicle stocks that are plunging in 2025.
The electric vehicle sector surged in popularity during the immediate post-COVID era as investors poured money into what seemed like the future of transportation. Back then, the promise of a green revolution fueled sky-high valuations and bold predictions. But that enthusiasm has since fizzled. Most electric vehicle stocks have plunged significantly and delivered consistent losses to shareholders.
Tesla seems to be the only company capable of selling electric vehicles in the West profitably, but even that company has been under tremendous pressure due to the politicization of its brand.
After Trump’s election, things look even bleaker for these companies and many of them are plunging. That said, many analysts now think that there are buying opportunities here, especially as a large portion of Tesla customers who previously would’ve bought Teslas are now likely to buy alternative EVs. Trump may also be softer than previously thought on EVs, as EV subsidies are still in place. It’s a good idea to take a look at the EV stocks that have been sold off the most so far this year.
Methodology
For this article, I screened the worst-performing electric vehicle stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An assembly line of electric cars moving along a production line.
REE Automotive Ltd (NASDAQ:REE)
Number of Hedge Fund Holders In Q4 2024: 5
REE Automotive Ltd (NASDAQ:REE) is a technology company that sells modular electric vehicle platforms and software-defined vehicles.
The stock is down significantly so far in 2025 as REE Automotive announced a registered direct offering of 6.4 million shares at $4.25 per share. It raised $27 million in gross proceeds.
Plus, despite plans to begin deliveries of its flagship P7-C electric truck in the first half of 2025 and ramp up production in the second half, there is market skepticism about REE’s ability to execute these goals effectively.
The consensus price target of $14.5 implies 427.27% upside.
REE stock is down 69.25% year-to-date.
Overall, REE ranks 1st on our list of electric vehicle stocks that are plunging in 2025. While we acknowledge the potential of REE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than REE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
