EV stocks rebounded following the weakness seen in the previous two weeks, thanks to the broader market recovery amid big tech news flow. The week witnessed monthly delivery updates from the Chinese EV trio, earnings reports from the Detroit duo, both of which are seriously pursuing EV transitions.
Here are the key events that happened in the EV space during the week:
Tesla Hit With More Recalls, Giga Texas Cathode Factory And More: The week witnessed multiple recalls by Tesla, Inc. TSLA, which underlines the quality issues the company is grappling with.
The company said it is recalling 53,822 vehicles in the U.S. equipped with the full self-driving beta software that allows "rolling stops." This prevents vehicles from coming to a complete stop at some intersections, which poses a safety risk.
Separately, the National Highway Traffic Safety Administration reportedly began a probe into Tesla's vehicles for "phantom braking" issues following complaints that Tesla cars suddenly brake at high speeds.
It was also reported this week that Tesla has applied for a permit to build a cathode factory in Austin, at Giga Texas. This will help the company supply cathodes for its 4680 batteries, thereby lowering supply chain costs and simplifying manufacturing. Tesla's battery supplier Panasonic Corporation PCRFY announced that it will begin pilot production of Tesla's 4680 batteries in early 2022.
Cathie Wood's Ark Invest, which stalled its months-long Tesla selling in late January, continued buying into the stock this week.
Nio, XPeng, Li Deliver: Chinese EV startups Nio, Inc. NIO, XPeng, Inc. XPEV and Li Auto, Inc. LI reported strong deliveries for the month of January. All the three reported year-over-year increases in deliveries, but month-over-month declines. Nio's tally was at 9,652 EVs, while XPeng and Li Auto sold 12,922 and 12,268 units, respectively.
Meanwhile, Warren Buffett-backed BYD Company Limited BYDDF outsold the three and delivered 46,386 EVs for January.
Related Link: Nio Analyst Predicts Over 200% Upside For Stock: 'EV Maker Has Clear Growth Prospects In 2022'
Ford, GM Signal Faster EV Transitioning After Mixed Results: Ford Motor Company F and General Motors Corporation GM are among the legacy automakers which reported their fourth-quarter results this week.
Ahead of the earnings release, Ford disclosed January deliveries, showing a 167.2% year-over-year increase in EV sales to 13,169 vehicles. Dearborn's total vehicle sales, however, remained flat. The company reported below-consensus fourth-quarter results that pressured its stocks.
A perusal of Ford's earnings report show that its fourth-quarter benefited from a $9.1 billion gain in the value of its stake in Rivian Automotive, Inc. RIVN.
Reports suggest Ford is preparing to invest an incremental $20 billion over the next five to 10 years toward its EV transition. This is over and above the $30 billion the company has committed to EVs through 2025. Ford could also be contemplating a spin-off of its EV business to unlock greater value for shareholders.
Meanwhile, crosstown rival GM reported better-than-expected fourth-quarter results and hinted at faster EV launches.
Fisker Fisker, Inc. FSR plans to debut its Fisker Ocean SUV at the Mobile World Congress in Barcelona, which is scheduled between Feb. 28 and March 3. The company said it will begin deliveries in certain European countries and North America following the start of production in November 2022.
Reports also suggest that Fisker will join forces with Apple, Inc.'s APPL iPhone supplier Hon Hai Precision Industry Co., Ltd. HNHPF to manufacture EVs in India over the next few years.
Volkswagen to Increase EV Production Capacity To 1M Annually By 2023: Volkswagen AG VWAGY said it aims to boost its Chinese EV production capacity to 1 million units per year in 2023, the Nikkei reported, citing Ralf Brandstaetter, CEO of Volkswagen Passenger Car brands. Brandstaetter is set to oversee the company's Chinese operations in August and will relocate to Beijing.
EV Stock Performances for The Week:
Related Link: This Warren Buffett-Backed Chinese EV Maker Easily Outsold Nio, Xpeng, Li Auto Combined In January
© 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.
