Electric vehicle stocks went down along with the broader market in the week that ended on Aug. 18, as strong economic data stoked fears of more interest rate hikes by the Federal Reserve.
Marker leader Tesla, Inc. TSLA fell in all five sessions of the week before settling at the lowest level since early June.
Here are the key events that happened in the EV space during the week:
Tesla China Price Cuts, Model 3 Highland Rumors And More: Close on the heels of CEO Elon Musk hinting at more EV price cuts, Tesla downwardly adjusted prices of its Model S and Model X vehicles in China by as much as $7,400. The company also reduced the prices of its Model Y Long Range and Performance variants in the country by approximately $1,923.
The EV pioneer also offered discounts on inventory vehicles in China. The market saw this as a desperate move to lure customers amid a challenging demand environment and competitive pressure. Investors did not take kindly to these developments and sold off the stock.
On a more positive note, rumors suggest Tesla’s refreshed Model 3 EV, widely referred to as “Highland,” will arrive at showrooms in China later this month, Bloomberg reported. The company has reportedly neared completion of display-vehicle manufacturing at the Giga Shanghai and the vehicles will likely be sent to showrooms in the latter half of August. Future Fund analyst and Tesla bull Gary Black sees the launch of the Highland model as a key near-term catalyst that can propel the stock.
Tesla is planning to enter the rental space with a new pilot program in Texas, according to Tesla influencer Sawyer Merritt in a post on X while citing a job listing. The company is prepping to recruit a program manager for business development in Austin. The job description says the potential recruit will “lead in the launch of the Tesla Rental Program in Texas” and “support the team on launching a small pilot in all Texas collision sites.”
See also: Best Electric Vehicle Stocks
Fisker To Adopt Tesla's NACS: EV startup Fisker, Inc. FSR, which has taken baby steps into commercialization, announced that it has signed an agreement with Tesla to adopt the latter's North American Charging Standard for its first vehicles, beginning in the first quarter of 2025. The company said this partnership will provide its users with additional charging options.
XPeng Q2 Dragged By Competitive Pressure: Chinese EV startup XPeng, Inc. XPEV reported this week a record quarterly loss of 2.7 billion yuan despite its sales coming in line with expectations. The company's gross margin inflected lower, turning from +10.9% in the same quarter last year to -3.9%. The Chinese EV market is in flux, as industry players resort to aggressive price cuts to boost volume. The company said it expects its G6 Ultra Smart Coupe SUV launched at the end of the second quarter to help boost margins.
VinFast's Wall Street Debut: Vietnamese EV company VinFast Auto Ltd. VFS made a strong debut this week after it tapped the capital market through the SPAC route. The stock was listed on the Nasdaq on Tuesday and ended at $37.06, giving it a market capitalization higher than those of legacy automakers such as Ford Motor Co. F and General Motors Corp. GM. Analysts and investors cried foul over the development and predicted doomsday for the stock. It retreated over the remainder of the week before settling Friday’s session down 23% at $15.40, according to Benzinga Pro Data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Lamborghini To Drive The EV Route: Italian luxury and sports car manufacturer Lamborghini on Friday debuted its concept EV Lanzador, which it plans to launch by 2028. The company said the Lanzador, its fully-electric battery EV, will be equipped with two electric motors, one for each axle, providing all-wheel drive and efficiency.
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EV Stock Performances for The Week:
| Weekly Change | |
| Tesla | -11.19% |
| Nio, Inc. NIO | -17.29% |
| XPeng | -7.99% |
| Li Auto, Inc. LI | -4.05% |
| Fisker | -1.25% |
| Workhorse Group, Inc. WKHS | -12.14% |
| Hyzon Motors, Inc. HYZN | -5.69% |
| Canoo, Inc. GOEV | -14.16% |
| Rivian Automotive, Inc. RIVN | -3.66% |
| Lucid Group, Inc. LCID | -6.93% |
| Faraday Future Intelligent Electric, Inc. FFIE | -6.50% |
| Arrival ARVL | -14.50% |
| Nikola Corp. NKLA | +0.52% |
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