Shares of electric and clean energy vehicle companies, including Rivian Automotive (NASDAQ:R), Workhorse Group (NASDAQ:W) and FuelCell Energy Inc (NASDAQ:FCEL), are all trading lower amid a continued market selloff as concerns over Fed policy tightening continue to pressure growth sectors.
The EV sector gained in 2021 amid US President Biden's clean energy initiatives, which pushed valuations higher. The sector has recently been pressured by a recent rise in Treasury yields, together with Fed rate hike concerns. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
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