Electric-vehicle makers’ shares pulled back this week amid the broader market weakness, with market leader Tesla, Inc.’s TSLA earnings not offering any respite.
Here’s a rundown on what happened in the EV space during the week:
Tesla Posts Mixed Results: Kicking off the EV reporting season this week, Tesla had a mixed tale to tell. Second-quarter revenue exceeded expectations but earnings per share trailed estimates. Fund Manager Gary Black blamed the earnings per share miss on restructuring charges related to job cuts. Investors also fretted over a surge in regulatory credits and management commentary regarding a notable drop in volume this year.
CEO Elon Musk tried to rev up sentiment by pointing to the promise that robotics holds for the company and raving over Tesla’s full self-driving software. He also said the eagerly awaited robotaxi event has been shifted to Oct. 10. Investors did not buy into the potential of the energy storage business, which doubled during the quarter. The stock, which had been rebounding nicely ahead of the quarterly results, reversed course and ended with a weekly drop of more than 8%.
Rivian’s Scaringe Talks Up New R2 Platform: In a podcast, Rivian Automotive, Inc. RIVN CEO R.J. Scaringe said Tesla’s Model Y and Model 3 EVs, though excellent, have saturated the market, leaving buyers craving variety. “If you want to spend less than $50,000 for an EV, I'd say there's a very, very small number of great products,” Scaringe told the Decoder podcast in December.
While many EV companies have tried to replicate the success Tesla has had with the Model Y EVs, they have not focused on giving diverse choices. Scaringe also clarified that Rivian’s R2 platform-based will not be a Model Y copycat.
See Also: Best EV Stocks
GM To Go Slow On EVs: On its earnings call this week, General Motors Corp. GM said it was slowing plans for EVs by delaying a second EV truck plant in Michigan by six months and delaying the first Buick brand EV. The delay until mid-2025 suggests GM may not hit its 2025 production target of one million EVs. CEO Mary Barra said the company is looking to grow “responsibly and profitably.” EVs accounted for just 3.2% of GM’s total second-quarter U.S. sales.
Xiaomi Quick With EV Ramp-Up: Xiaomi Corporation XIACY Chairman and CEO Lei Jun said in a Weibo post that the smartphone maker is on track to meet its annual delivery target of 100,000 EV units for 2024 two months ahead of schedule, CnEVPost reported. According to the report, Jun said that Xiaomi has completed its factory capacity ramp-up and has sold 30,000 units of its SU7 model in a little over three months since the vehicle’s launch.
Lucid Stitches Battery Material Deal: Lucid Group, Inc. (NASDAQ LCID) announced an agreement with mineral exploration company Graphite One Inc. GPHOF for the supply of anode active materials.
“We are committed to accelerating the transition to sustainable vehicles and the development of a robust domestic supply chain ensures the United States, and Lucid, will maintain technology leadership in this global race,” said Lucid CEO/CTO Peter Rawlinson. “Through work with partners like Graphite One, we will have access to American-sourced critical raw materials, helping power our award-winning vehicles made with pride in Arizona.”
The KraneShares Electric Vehicles and Future Mobility Index ETF KARS ended Friday’s session up 0.72% at $19.31 according to Benzinga Pro data. For the week, the ETF fell 3.84%.
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| Weekly Change (+/-) | |
| Tesla | -8.11% |
| Nio, Inc. NIO | -0.67% |
| XPeng, Inc. XPEV | +0.71% |
| Li Auto, Inc. LI | -2.55% |
| Workhorse Group, Inc. WKHS | -10.78% |
| Hyzon Motors, Inc. HYZN | +7.58% |
| Canoo, Inc. GOEV | -10.00% |
| Rivian | -3.22% |
| Lucid | -3.43% |
| Faraday Future Intelligent Electric Inc. FFIE | -11.07% |
| Nikola Corp. NKLA | -1.37% |
| VinFast Auto Ltd. VFS | -9.03% |
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