Electric vehicle stocks closed mixed in the week that ended on Dec. 15 despite the broader market optimism over the Federal Reserve’s inclination toward rate cuts. It appears that these stocks will likely be laggards, primarily due to the larger slowdown in EV adoption and ramp-up issues faced by both legacy automakers transitioning to EVs and startups.
Here are the key events that happened in the EV space during the week:
Tesla Recalls, Cybertruck Delay And More: Shares of Tesla, Inc. TSLA broke above the $250 psychological barrier, despite the company’s recall of over 2 million vehicles in the U.S. to rectify issues with Autosteer via an over-the-air update. Documents posted on the National Highway Transport Safety Administration’s website said the update would increase warnings and alerts to drivers and limit the areas where the basic version of the Autopilot system can operate. The recall has since expanded to Canada.
As Tesla grapples with workers’ unions in Sweden, the company is seeking to employ a specialist with “significant experience with Nordic legislative and regulatory advocacy,” according to a new posting on Tesla’s careers website.
The Giga Mexico, which is currently under construction, will likely receive $158 million in new incentives from Mexico’s Nuevo León state, where it is located. “The approved incentives will allow the creation of basic infrastructure, such as drinking and treated water, roads and new transportation routes, which will enhance the economic development of the western area of the Metropolitan Area,” a posting on the state government’s website said.
Tesla has pushed back the delivery dates of the Cybertruck Foundation series from early 2024 to mid-to-late 2024, according to information available on its website. The changed schedule was first reported by Tesla influencer Sawyer Merritt.
Ford’S Tempered EV Ambition: Legacy automaker Ford Motor Co. F is planning to reduce its F-150 Lightning EV production by 50%, beginning in 2024, an Automotive News report said. The company reportedly informed dealers that the weekly production of the electric pickup truck would decrease from 3,200 units to 1,600 units. The report comes as EV adoption has slowed and as Ford contends with the aftermath of a strike by employees affiliated to the United Autoworkers Union.
See Also: Best Electric Vehicle Stocks
Lucid’s CFO Departs: Shortly after Lucid Group, Inc. LCID was booted out of the Nasdaq 100 Index, the company announced that its CFO Sherry House is departing to pursue other opportunities. The company named Gagan Dhingra, who is currently serving as vice president of accounting and as the principal accounting officer, as interim CEO.
GM Cruise Slashes 24% Jobs: General Motors Corp. GM self-driving Cruise unit reportedly said in an internal memo that it will eliminate 24% of its employees, with the cuts mainly in commercial operations and related corporate divisions. The development comes close on the heels of the GM unit dismissing nine key leaders over an Oct. 2 accident in which a Cruise self-driving vehicle dragged a pedestrian 20 feet after the person was hit by another vehicle.
The accident set off a series of adverse developments, including the grounding of the Cruise robotaxi fleet, recall of vehicles and stalling of the production of a new robotaxi.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Rivian Lands New Customer For EDV: EV startup Rivian Automotive, Inc. RIVN, which announced the termination of an exclusive partnership with Amazon for its electric delivery van, said this week that it has signed an agreement to sell its EDVs to AT&T, Inc. T. “AT&T expects to begin adding the Rivian Commercial Van and R1 vehicles to its fleet in early 2024 to begin evaluating the various ways these vehicles help improve safety, reduce costs and cut its carbon footprint,” the EV maker said in a release.
The KraneShares Electric Vehicles and Future Mobility Index ETF KARS ended Friday’s session down 0.55% at $25.37, according to Benzinga Pro data. For the week, the ETF gained 3.72%.
| Performances (+/-) | |
| Tesla | +3.96% |
| Nio, Inc. NIO | +8.13% |
| XPeng, Inc. XPEV | -4.49% |
| Li Auto, Inc. LI | +1.29% |
| Fisker, Inc. FSR | -1.22% |
| Workhorse Group, Inc. WKHS | -12.62% |
| Hyzon Motors, Inc. HYZN | -8.68% |
| Canoo, Inc. GOEV | +3.27% |
| Rivian | +19.91% |
| Lucid | +0.85% |
| Faraday Future Intelligent Electric, Inc. FFIE | -9.80% |
| Arrival ARVL | +2.38% |
| Nikola Corp. NKLA | +26.95% |
| VinFast Auto Ltd. VFS | +15.04% |
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