Finance

Clean Tech Valuations Are Wildly Out of Sync With Company Profit

  • Wilderhill Clean Energy Index has $1.3 trillion market value
  • Its 56 member companies have combined losses of $6.4 million

    

Photographer: Krisztian Bocsi/Bloomberg

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Investors bullish on the green transition have sent clean-energy stocks to unprecedented levels. But behind the skyrocketing valuations of electric-vehicle and battery makers is a sobering reality: companies hemorrhaging money.

The Wildherhill Clean Energy Index, which tracks the clean-energy sector, has seen its value surge more than 300% to $1.3 trillion during the past year. Its 56 member companies posted combined net losses of $6.4 million in the 12 months ending in September 2020, according to data compiled by Bloomberg.