Most electric vehicle stocks advanced in the week that ended on July 28 amid broader market strength, thanks to earnings-induced optimism and several company-specific catalysts. Tesla, Inc. TSLA shares came under some volatility during the week before clawing back their losses.
Here are the key events that happened in the EV space during the week:
Tesla Range Controversy, India Plans And More: Tesla was in the eye of a storm this week after Reuters reported that the EV giant had a secret team set up in Las Vegas called a “Diversion Team” to hush complaints regarding its vehicles’ actual range while on full charge. Tesla backers, including Future Fund’s Gary Black, shrugged off the report saying, “The EPA sets the advertised battery range for each EV based on the same process, so it would be difficult for TSLA to game.”
It also appears that Tesla’s foray into India could be be imminent. A Reuters report noted that two senior Tesla executives discussed the company’s plans to enter India with officials from the country’s investment promotion arm in New Delhi. The company reportedly said it would produce a low-cost EV priced at $24,000 for the Indian market and for export.
The Elon Musk-led company has additionally taken the lead in the Californian auto market. Tesla’s new vehicle market share in California stood at 13.6% in the year-to-period, according to data released by the California New Car Dealers Association. This exceeded the 12% share held by Toyota Corp. TM.
See also: Best Electric Vehicle Stocks
Rivian A Demand Creator, Says Analyst: Ahead of second-quarter results, EV startup Rivian Automotive Holding, Inc. RIVN received a price target bump-up from Needham analyst Chris Pierce. The analyst sees potential upside in margins due to higher production and deliveries, resulting in increased fixed-cost absorption. The new price target suggests that the stock could have roughly 19% upside potential over the next year. Pierce said he sees Rivian as a demand creator, as the majority of its buyers are first-time pickup truck owners.
XPeng Leads Chinese Startups Higher With Volkswagen Partnership: The Chinese EV startup space saw buoyancy this week, as XPeng, Inc. XPEV announced that German automaker Volkswagen AG VWAGY would take a stake in it and collaborate on EV production. Rumors of XPeng’s competitor Nio, Inc. NIO teaming up with Mercedes-Benz Group AG MBGAF also made the rounds. The development came as Chinese companies have been facing increasing competition and a lackluster domestic economic recovery in China
Ford’s Pushed-Back EV Ambitions: Legacy automakers have not found much momentum in their transition to EVs, as reflected by Ford Motor Co.’s F quarterly results released this week. The company expects to report a loss of around $4.5 billion from its Model E EV business this year, dragged by industry-wide pricing pressure and investments in capacity.
The company also said EV adoption would be slower than expected in the near term. It pushed back the goal of producing 600,000 all-electric vehicles to 2024.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Lucid Teases Sapphire Sports Sedan: Amid struggles with production ramp-up, luxury EV maker Lucid Group, Inc. LCID teased its Lucid Air Sapphire super sports sedan through a tweet.
Read Next: Tesla Analyst Explains Stock’s 12% Post-Earnings Pullback: 9 Catalysts That Can Stall The Sell-Off
EV Stock Performances for The Week:
| Weekly Change | |
| Tesla | +2.50% |
| Nio | +39.32% |
| XPeng | +60.65% |
| Li Auto | +15.55% |
| Fisker | -4.07% |
| Workhorse | +0.86% |
| Lordstown | +16.95% |
| Hyzon | +19.75% |
| Canoo | -15.84% |
| Rivian | +6.61% |
| Lucid | +8.73% |
| Faraday Future | -11.38% |
| Arrival | +11.50% |
| Nikola | -9.20% |
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
