I've been taking a deep dive into the electric car and lithium battery industries in hopes of finding solid investment opportunities, and I've come across a consistent trend. Many of these companies spike massively when they go public, and ultimately come crashing down to a seemingly endless flat streak at penny stock values. Examples of this include Rivian (RIVN), Nikola (NKLA), and a battery manufacturer Microvast (MVST). Understandably, electric vehicles is a hard industry to break out in, especially here in the US where adoption of the technology and infrastructure has been underwhelming, and there is a singular giant already filling much of the space that these companies are vying for. What I'm confused about, is why do these companies fall so flat? They obviously aren't Tesla and aren't enjoying success to the same degree that Tesla does, but at least in my area, Rivian vehicles are a regular sight. Nikola just got a pretty solid deal to sell 30+ trucks to a major US trucking company, and Microvast is one of the only companies of its kind with a real marketable product. How is it that these companies can trade so low compared to their industry leader? What is it that I'm missing? These companies certainly aren't as strong with their youth and associated hardships (such as debt) but these seem to have been undervalued for years with no sign of relief.
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