The week was marred by negative headlines surrounding electric vehicle companies, and, unsurprisingly, a number of EV stocks ended deep in the red.
Here are several key events that happened during the week:
Tesla Drops Prices Further, Faces Regulatory Scrutiny And More: Tesla, Inc. TSLA followed up on a string of price cuts and lowered prices of its Model X and S vehicles this week. Incidentally, Berenberg analyst Adrian Yanoshik said in a recent note that Tesla's volume advantage is its weaponized capacity, which is allowing the company to tinker with prices. The most recent price cuts on the two models range from 4.4% to 9.1%.
The EV pioneer also announced this week new “Ultra Red” paint for the Model S and X vehicles, which appear slightly darker than the previous red multi-coat. The company additionally hinted at more updates, including improvements in its glass roof and brake pedal.
Tesla stock fell in all but one session of the week, as fallout from a disappointing Investor Day continues to linger.
Among the negative headlines that hit the company's stock was a report of regulatory scrutiny following two complaints over steering wheels coming off due to issues with bolts. In other news, Tesla has begun hiring for its recently-announced Giga Mexico and was seen pushing out new its Full Self-Driving Beta v11 software update.
See also: Best Electric Vehicle Stocks
Recall Woes Plague Ford: Leading automobile manufacturer Ford F recently issued a recall of 18 of its F-150 Lightning vehicles related to defective battery cells. In early February, an F-150 Lightning caught fire during a pre-delivery quality check. The company subsequently identified the problem in battery packs that were manufactured at supplier SK On's plant in Georgia. Following a pause in manufacturing for about four weeks, production of the vehicle will reportedly restart on Monday.
Lordstown’s Q4 – Nothing To Write Home About: Lordstown Motors Corp. RIDE reported this week a wider loss for the fourth quarter. It ringed in revenue of about $194,000, which came nowhere near estimates of $1.29 million. The company also said it had $221.7 million in cash and short-term investments, and confirmed that, of its planned batch of up to 500 Endurance EV pickup trucks, it produced just 40 units and sold six of them during the quarter.
Production of the trucks was stalled in late February, and a voluntary recall was initiated amid performance and quality issues. In the wake of its troubles, Lordstown said it will focus on developing a new platform alongside manufacturing partner Hon Hai Precision Manufacturing Company Limited HNHPF and work on a new commercial vehicle.
Volkswagen Rumored to Announce Sub-$25K Car: This month, Volkswagen AG VWAGY teased an event on Twitter, telling its followers to “find out more about our new design language, our vision for the future and more!”
Rumors abound that the company could announce an urban EV concept — likely the ID. 2 — with the social media hashtag #VWforrthepeople seemingly fueling further speculation. The EV, which is expected to launch in 2025, could be priced at around $24,000, Autocar reports.
Rivian’s Green Note Offering: After revealing its struggles with ramping up production, Rivian Automotive, Inc. RIVN announced plans to offer convertible senior, unsecured green notes to raise $1.3 billion in net proceeds. The company also disclosed the terms of the offering. Separately, Rivian received a Buy recommendation from BofA Securities this week.
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