The latest Markets Live Pulse survey data shows that the market's sell-off in green stocks looks set to continue into 2024, which will be the fourth consecutive year of losses for green stocks。

And this negative sentiment is sweeping across the broader green asset class, with Tesla thought to be in danger of losing its position as the top 10 component of the S & P 500.。

Markets Live Pulse survey includes portfolio managers, traders and retail investors.。Nearly two-thirds of the 620 respondents said they plan to stay away from the electric vehicle industry.。57% expect the iShares Global Clean Energy ETF to continue its decline in 2024, and the fund has fallen about 30% this year。

Although Market Live Pulse respondents are generally pessimistic about recent green stocks, the situation is different when the time horizon is extended。There are a number of respondents who are waiting for a recovery in such stocks.。According to some respondents, the current sell-off represents a "temporary shift in capital away from renewables."。

But the timing of the recovery is proving difficult to grasp。Investors targeting environmental, social and governance (ESG) targets had hoped for a rebound this year due to the historic support provided by packages such as the U.S. Inflation Reduction Act.。But the opposite is true, with high inflation and soaring interest rates eventually hitting many traditional ESG stocks hard, with wind and solar stocks being the biggest losers.。

Many clean energy companies are capital-intensive, making them more vulnerable to higher borrowing costs than oil and gas companies with well-established rig platforms.。Worse, wind and solar producers have generally been hit by project delays, which have been further exacerbated by supply chain bottlenecks, program derailments and increased costs.。

The survey expects the next green asset class to decline to be electric vehicles, as they remain too expensive for many households struggling with the effects of long-term inflation.。

A "star stock" in electric vehicles, Tesla shares have surged nearly 140 percent this year, peaking in July, but have since fallen about 20 percent.。

Two years ago, Tesla's valuation was as high as 1.$2 trillion, once the fifth largest component of the S & P 500。Currently, its market capitalization has fallen below $800 billion, ranking eighth in the benchmark index.。Nearly half of Market Live Pulse respondents expect it to fall out of the top 10 next year。

And for Tesla investors, there are other risk factors for Tesla, such as multiple lawsuits, Swedish factory strikes, and declining profit margins.。

However, investors are not losing confidence in green assets。Instead, most investors believe the pace of climate change is forcing an inevitable shift to green technologies.。Against this backdrop, two-thirds of survey respondents expect climate change to affect portfolio value over the next three years.。This echoes previous similar surveys, which earlier this month found that 89% of investors admitted that ESG metrics would continue to exist.。

Analysts at Barclays, led by Maggie O'Neal, said: "Next year is an important year to implement and update decarbonisation targets, as the Paris Agreement's decarbonisation efforts require additional up-front net investment.。"