Why These 15 Electric Vehicle Stocks Are Plunging in 2025

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1. 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.

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

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