Tesla’s Tough Time: What Went Down
Electric vehicle stocks hit the skids last week as optimism waned, taking major players on a downward spiral. Tesla, Inc. (TSLA) felt the pinch, reporting a rare drop in deliveries, its first since the COVID-19 hit in 2020. Musk’s brainchild saw a falloff in first-quarter deliveries, attributing the slump to the shift in Model 3 production at Fremont and disruptions at Giga Berlin. This resulted in a swift stock drop, drawing ire from both bulls and bears alike, yet some bulls held onto hopes of better days ahead.
The weak numbers spurred a sharp exchange between Musk and Ross Gerber, with the latter urging for board restructuring, holding Musk responsible for the slip. In a fiery response, Musk labeled Gerber an ‘idiot,’ comparing Tesla’s slump to Chinese giant BYD’s dismal quarter performance. BYD, which briefly held the global EV crown, relinquished it back to Tesla, delivering fewer battery EVs than its rival.
Rivian’s Rise and Onwards
In a contrasting tale, Rivian Automotive, Inc. (RIVN) celebrated a significant milestone, churning out its 100,000th vehicle, marking a bright spot in the sea of industry gloom. The Irvine-based company aims to produce 57,000 EVs this year, as it continues on its quest for profitability despite incurring heavy losses with each vehicle made. The recent launch of its R2 platform is a step towards broadening its product lineup.
Nikola’s Delivery Triumph
On the other end of the spectrum, hydrogen truck specialist Nikola Corp. (NKLA) posted encouraging first-quarter figures, surpassing estimates with 40 hydrogen fuel-cell truck deliveries, backed by a strong production of 43 units. CEO Steve Girsky expressed optimism for a successful 2024, building on the momentum from the previous year and anticipating further growth as their HYLA fueling solutions take flight.
Canoo’s Struggles and Strains
Less fortunate was EV startup Canoo, Inc. (CANOO) that stumbled over a rock-strewn week, witnessing a share plummet of over 40% after issuing a gloomy forecast for 2024. Despite a narrower loss than forecasted, revenue failed to meet expectations, prompting a ‘going concern’ warning, painting a somber picture for the struggling company in the short term.
Wrapping Up the Week
The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) concluded the week with a modest 0.27% gain, showing resilience in the face of overall industry turbulence. The ETF’s performance remained a silver lining amid the storm, a testament to the mixed bag of fortune that befell various players.
As the industry navigates choppy waters, each player’s story weaves a rich tapestry of triumphs and tribulations, painting a vivid portrait of the electric vehicle landscape in flux.