Tesla Sweats Over Approval Of Elon Musk's Pay Plan, Ford's Distress Call To Suppliers, Faraday Future's Mouthwatering Rally And More: Biggest EV Stories Of The Week

Electric vehicle stocks rebounded strongly this week, thanks to the broader market buoyancy and the frenzied buying in the small-cap space on the back of the meme rally 2.0.

Here are the key events that happened in the EV space during the week:

Tesla Goes All Out To Convince Shareholders: Tesla, Inc. TSLA is working diligently to get CEO Elon Musk’s 2018 compensation package reapproved by shareholders at the June 13 annual meeting. The company has been courting retail shareholders through a dedicated “Vote Tesla” website, and has appointed a strategic advisor and an external law firm to spearhead the campaign, Bloomberg reported.

Fund Manager Gary Black expressed confidence in the pay plan being approved, seeing it as crucial for ensuring Elon Musk’s continued involvement with Tesla.

Tesla, meanwhile, continued to tinker with pricing and promotional measures. The company raised the price of the Model 3 Performance variant by $1,000 in the U.S., on top of a $1,000 hike announced earlier this month. The development is important because the company launched the Model 3 refresh in the U.S. less than a month ago.

Ford Appeals To Suppliers: Legacy automaker Ford Motor Co. F, which is struggling with its EV transition, is trying hard to cut losses of its EV business. Crain’s Detroit Business reported Thursday that the company sent a memo to suppliers, seeking their help to reduce costs.

“We have all invested heavily in the success of the EV business, and we will all win or lose together,” Liz Door, Ford’s chief supply chain officer reportedly said in the memo. “To enable affordability, it is of paramount importance that our EV portfolio achieves further levels of material cost efficiency.”

The company asked suppliers to develop “incremental cost-reduction proposals” for a list of both current and upcoming EVs, including the F-150 Lightning pickup, next-gen P800 electric pickup, Mustang Mach E, E-Transit van and large electric SUV.

“We also would be willing to consider ideas that may require investment but support profitability. Everything is on the table,” Door reportedly said.

See Also: Best Electric Vehicle Stocks

Faraday Future’s Stratospheric Rally: Struggling EV startup Faraday Future Intelligent Electric Inc. FFIE saw its shares catapult from $0.0460 on May 10 to $1.03 on Friday. In percentage terms, the gain is a mouthwatering 2,000%. The gain came despite a lack of any significant news from the company. Incidentally, the stock rose as high as $3.90 intraday on Friday. The marked outperformance versus the market may be attributable to strong retail buying in the stock amid a resurgence in the meme rally this week. Frenzied retail buying is believed to have set in motion a short squeeze, going by the elevated short interest in the stock.

Rivian Partners With Google: Close on the heels of the Alphabet, Inc. GOOGL GOOG I/O event, Rivian Automotive, Inc. RIVN said it would soon introduce Google Cast and YouTube in its R1’s central display.

“Whether you're charging or relaxing at a campsite, you'll soon be able to stream high-definition video content, with high-quality sound, from cast-enabled apps on your iPhone or Android phone or tablet directly to your vehicle. And with a 15-inch touchscreen and immersive audio system, your Rivian is practically a home theater,” it said.

Nio’s Model Y Killer Drives In: Chinese premium EV maker Nio, Inc. NIO unveiled the first vehicle under its affordable ONVO brand this week. The vehicle, named ONVO L60, is a smart electric mid-size family SUV. The “L60 will bring mainstream family users vehicle experiences of premium quality,” the company said. Nio began taking preorders for the vehicle, with deliveries to start in the third quarter of 2024. The EV has a starting price of 219,900 yuan ($30,500). Nio said previously that the L60 will take on Tesla’s Model Y, which has a starting price below 249,900 yuan in China. 

The KraneShares Electric Vehicles and Future Mobility Index ETF KARS ended Friday’s session up 0.50% at $22.35, according to Benzinga Pro data. For the week, the ETF gained about a percent.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Why Can’t Tesla Just Grant Elon Musk A New Pay Package? Critic And Legal Expert Says CEO ‘Can’t Replicate The Stock-Pumping Feats’ From 2018

EV Stock Performances For Week:

Photo: Shutterstock