Carbon Bubble
Traders Plowed Billions Into Electric-Car Stocks Before Slump
Tesla’s market slide far exceeds the S&P 500 this week.
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A plunge in the stocks of electric-vehicle makers is lashing investors who plowed billions into the sector this year in a bid to surf one of Wall Street's hottest trends.
Tesla Inc. led this week’s drop in the auto sector that’s battered the holdings of funds focused on this part of the market. That’s painful for traders who poured almost $2 billion into electric car and battery-focused exchange-traded funds in 2021, according to Bloomberg Intelligence. ETF assets in the segment had swelled to a record $4.6 billion before the selloff.