When Tesla’s (TSLA) shares broke down, it took down the majority of electric vehicle stocks. Will the EV mania flame out in 2023 as a result?

In China, Nio (NIO) and XPeng (XPEV) lost more than half their value. They trade at a fraction of Tesla’s multiples. The markets are expecting China to end subsidies for EVs. In addition, demand for EVs is secondary as the economy slows.

In the EV truck market, Rivian (RIVN) is not yet attracting bears. The short float is only 5.4%. The stock is very expensive on a price-to-sales measure. Risks are high that customers could cancel their reservation for the Rivian EV. The economy is weak. Customers cannot afford a Rivian.

In the luxury market, Lucid (LCID) is at high risk of stalling its production rates. Although it has a high cash balance, the bearish short flat is 9.17%. Lucid is unlikely to pivot from luxury EV production to mass market output. It needs that to achieve economies of scale.

Risks are high that the euphoria for EVs ended in the last two months. Investors might dump EV stocks before 2023 starts to book losses.