Electric vehicle stocks defied the broader market optimism and ended mostly lower in the week that ended on March 8, led by Tesla, Inc. TSLA. Rivian Automotive, Inc. RIVN got a reprieve as investors cheered the introduction of new models by the Irvine, California-based company.
Key Events Unveiled in the EV Sector:
Tesla’s Turmoil and Rivian’s Revival: The past week for Tesla was akin to a rollercoaster ride as analysts voiced concerns over potential Q1 delivery shortfalls. Renowned fund manager Gary Black warned of a downtrend in the 474,000-unit first quarter delivery consensus. The flagship Future Fund Active ETF FFND significantly slashed its Tesla holding to under 3% from over 5% at the week’s start. Adding to woes, an alleged arson incident outside Giga Berlin disrupted plant operations, potentially halting production until mid-March. Despite this setback, optimistic about steady Model Y inventories in Europe, Black suggested delivery impact might be contained. As March drew to a close, Tesla enticed customers with up to 10,000 miles of complimentary supercharging for new car deliveries by March 31.
Rivian’s Triple Reveal: Rivian unveiled a trifecta of new models during a global showcase. Introducing the more affordable midsize electric SUV, the R2, starting at $45,000, CEO R.J. Scaringe also announced the R3 EV and R3X, expanding the lineup. The R2 and R3 will offer two battery sizes, with the larger pack boasting over 300 miles of range on a single charge and sub-three-second 0-60 mph acceleration for the quickest variant. Amid the fanfare, Rivian initiated R2 reservations in the U.S., receiving a whopping 68,000 reservations in under 24 hours.
Ford’s Electric Conundrum: Despite once spearheading the ICE to EV transition, legacy automaker Ford Motor Co. F faces hurdles. Hindered by lackluster Mustang Mach-E sales, Ford pivots towards hybrids to maintain EV relevance. Monthly sales updates revealed a 10.5% sales uptick in February, propelled by family crossovers, pickups, and hybrid vehicles.
Nio’s Model Y Challenger: Chinese EV pioneer Nio, Inc. NIO disclosed Alps, its upcoming mass-market sub-brand during a Q4 earnings call. CEO William Li outlined Alps’ imminent Q2 launch and Q3 first vehicle debut, offering a price point 10% lower than the Model Y. Alps’ inaugural model, a spacious SUV for large families, aims to broaden Nio’s market reach following a robust fourth-quarter performance.
Lucid’s Diminishing Prospects: RBC Capital Market’s analyst Tom Narayan cut Lucid Group, Inc.’s LCID price target to $3 citing muted auto sales and licensing revenue outlook. Lucid faces slashed earnings projections as Narayan tempered expectations for licensing revenue and auto business earnings contributions.
The KraneShares Electric Vehicles and Future Mobility Index ETF KARS concluded the week down 0.80% at $22.28, as per Benzinga Pro data. Over the week, the ETF witnessed a 3.68% decline.
Notable EV Stock Performance for the Week:
| Performance (+/-) | |
| Tesla | -13.47% |
| Nio | +0.35% |
| XPeng, Inc. XPEV | -4.32% |
| Li Auto, Inc. LI | -16.54% |
| Fisker, Inc. (NYSE: FSR_ | -22.05% |
| Workhorse Group,WKHS | -8.01% |
| Hyzon Motors, Inc. HYZN | +2.81% |
| Canoo, Inc. GOEV | -11.27% |
| Rivian | +12.60% |
| Lucid | -6.91% |
| Faraday Future Intelligent Electric, Inc. FFIE | -32.83% |
| Nikola Corp. NKLA | -8.46% |
| VinFast Auto Ltd. VFS | -9.33% |
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