Wall Street and Silicon Valley poured billions of dollars into electricvehicle and related companies in 2020, betting on their future dominance and in many cases fueling valuations that bear little relation to the companies current or expected production and sales.

There is little doubt that the automotive industry is trending toward electric vehicles amid the rise of Tesla Inc. Declining prices and increasing availability of electric vehicles, or EVs; the potential for technology breakthroughs that offer a cheaper, longerlasting, and fastertorecharge battery; strides in EV infrastructure, and green friendly government initiatives taking root in the U.S. and elsewhere show the likely path.

And what once was an investment universe comprising solely Tesla and a smattering of fuelcell companies has burgeoned into a subsector combining industrials, tech and transportation, with China as a major driving force both as EV makers base market and for EV demand. In total, at least 28 billion was invested in public and private electricvehicle companies in 2020, according to data from CB Insights and Dow Jones Market Data Group.

In several countries around the world, people will no longer be allowed to purchase internal combustionengine vehicles within a short decade or two, and global auto makers have realized that the transition to electrified vehicles is the only way to compete, he said.

Not to be outdone, General Motors Co., Ford Motor Co. and other legacy auto makers amped…