Wall Street Sours on EVs as Demand Falters, Funding Costs Soar

Electric vehicles may be seen as crucial to the future of transportation, but it’s been a rough stretch for investors in stocks tied to the sector.

First, industry giant Tesla Inc. warned of growth troubles last week, then General Motors Co. said it was rethinkingits EV growth plans as sales have been slower than expected. Now analysts across Wall Street are dialing back expectations for all kinds of companies exposed to EVs, citing weakening demand amid headwinds like rising borrowing costs.

The upshot is that EV stocks have begun to nosedive, after leading the broad market early in the ...