Tesla Alienates Investors With Sketchy Near-term Outlook, Rivian's Rumored R2 Global Premiere, Canoo On A Roll: Biggest EV Stories Of The Week
Electric-vehicle shares continued to bounce around the bottom in the week that ended on Jan. 26, with Tesla, Inc.’s (NASDAQ:TSLA) disappointing fourth-quarter results weighing down on the space. The Elon Musk-led company’s double miss set off concerns regarding quarterly results due by its smaller rivals.
Here are the key events that happened in the EV space during the week:
Tesla’s Double Miss: Weighed down by slowing demand and shrinking margins, Tesla reported its second straight quarter of double miss. The company also alienated investors by guiding to a significant slowdown in volume growth. The stock sank to an eight-month low on Thursday in reaction to the disappointing results, and analysts were quick to reduce their 12-month price targets for the stock.
Analysts panned the company for not addressing the near-term issues such as demand and margin trajectory on the earnings call. Instead, Musk and team delved into initiatives, such as Optimus and full-self driving technology, which have long-term implications for the company and its stock.
Cathie Wood’s Ark Invest, which is bullish on Tesla, took advantage of the weakness and bought Tesla shares for two straight days following the earnings.
Rivian R2 Launch Rumors: Irvine, California-based Rivian Automotive, Inc. (NASDAQ:RIVN) was in the news this week after a meeting agenda from the Laguna Beach City Council revealed that the company had applied for permission to showcase six vehicles at Main Beach Park on March 7 for a “half-day” public event. The event is intended to mark the global launch of the next-generation EV. A map provided in the document hinted at a “Rivian R2 launch.”
Separately, Needham EV analyst Chris Pierce cut his price target for the stock from $25 to $22 even as he reiterated a “Buy” rating. “We disagree with bearish investors who see RIVN becoming demand constrained in real time, but we lower our ’24 delivery estimates to better reflect potential initial ’24 vehicle production guidance, pushing our gross margin estimates lower,” the analyst said.
See Also: Best Electric Vehicle Stocks
Canoo Flouts Contract Win: Despite struggling with a liquidity crunch, Canoo, Inc. (NASDAQ:CANOO) is making strides on orders. The company said this week that the U.S. Postal Service will purchase six right-hand drive versions of its light-delivery vans in the first quarter of 2024,
This agreement is “part of the USPS's $40 billion investment strategy to upgrade and improve the organization’s processing, transportation, and delivery networks,”‘ the company said.
Earlier this month, Canoo said it began deliveries of EDVs to van rental provider Kingbee.
GM, Honda Start Production At Fuel Cell Venture: Legacy automakers General Motors Corp. (NYSE:GM) and Honda Motor Company Ltd. (NYSE:HMC) said they have started production of fuel cells at their facility FCSM. The venture, established in Brownstown, Michigan in Jan. 2017, aims to become a “world-class hydrogen power solutions” provider that will supply both companies.
“GM and Honda share in the belief that hydrogen and fuel cell technology will play an increasingly important role in meeting a wide variety of zero-emissions energy and mobility needs, and each company has provided further details about their individual hydrogen business strategies,” the companies said.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Hyzon Begins Deliveries Of Fuel-Cell EVs: Fontana, California-based Hyzon Motors, Inc. (NASDAQ:HYZN), a developer of heavy-duty fuel-cell EVs, said it delivered four FCEVs to leading food distributor and supplier Performance Foods Group in a joint ceremony. The event was attended by local government leaders, company leaders and PFG associates, and showcased the new FCEVs by offering ride-along demonstrations, the company said. The two companies intend to work together on an agreement for 15 200kW and an option for an additional 30 FCEVs, it added.
The KraneShares Electric Vehicles and Future Mobility Index ETF (NYSE:KARS) ended Friday’s session rose 0.99% at $21.48, according to Benzinga Pro data. For the week, the ETF fell 1.47%.
EV Stock Performances For Week
| Performances (+/-) | |
| Tesla | -13.64% |
| Nio, Inc. (NYSE:NIO) | +1.32% |
| XPeng, Inc. (NYSE:XPEV) | -6.95% |
| Li Auto, Inc. (NASDAQ:LI) | -2.20% |
| Fisker, Inc. (NYSE:FSR) | +2.53% |
| Workhorse Group, Inc. (NASDAQ:WKHS) | +0.39% |
| Hyzon | +28.66% |
| Canoo | +0.16% |
| Rivian | -1.23% |
| Lucid Group, Inc. (NYSE:LCID) | -2.21% |
| Faraday Future Intelligent Electric, Inc. (NASDAQ:FFIE) | -11.65% |
| Arrival (NASDAQ:ARVL) | -35.18% |
| Nikola Corp. (NASDAQ:NKLA) | +8.51% |
| VinFast Auto Ltd. (NASDAQ:VFS) | -1.00% |
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