Led by Tesla (Nasdaq: TSLA), electric vehicle stocks have been among the biggest winners on the stock market this year. Despite the impact of the coronavirus pandemic, manufacturers of the environmentally-friendly vehicles have come into vogue as demand in China has been strong and investors are bullish on the prospects for EVs in the U.S. if Joe Biden wins the presidential election. Meanwhile, momentum towards renewable energy and EVs continues to build around the world.
Tesla stock is up nearly 400% this year. Chinese EV-maker Nio (NYSE: NIO) has gained about 250%, and stocks like Nikola (Nasdaq: NKLA) and Workhorse have surged as well.
Is this a bubble or are EV stocks really set to replace traditional combustion vehicles? Let's take a look at five reasons to buy EV stocks, and five reasons not to.
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