Musk Shrugs Off 'Stock Market Craziness,' COVID Resurgence Haunts Nio But Li Auto Shines, Canoo Sues Former Executives And More: Biggest EV Stories Of The Week

Zinger Key Points
  • EV stocks had a torrid year in 2022 and the industry was among the worst-performers.
  • Arrival led the industry's losses with a 97.85% slump, while Tesla shed a massive 65% to be the worst-performing mega-cap stock.

Electric vehicle stocks closed the final trading week of the year on a mixed note amid the volatility in the broader market. Tesla, Inc. TSLA swung wildly before snapping three straight weeks of losses and closing just higher for the week.

Now, here are the key events that happened in the EV space during the week:

Tesla Stock Weakness Triggers Reactions: Tesla CEO Elon Musk sent out an email to employees this week, encouraging them to put in maximum effort in the fourth quarter. “Please go all out for the next few days and volunteer to help deliver if at all possible. It will make a real difference!” he reportedly said in the internal email. He also asked them not to be bothered about the “stock market craziness” and reassured them that Tesla will be the most valuable company on the earth in the long term.

Tesla extended its $7,500 discount to its Model S and Y vehicles in the U.S. but the catch is that it is available only for a very short period until the year-end.

When Tesla stock plummeted to a multi-month low, prominent Tesla bull and Wedbush analyst Daniel Ives suggested a 10-point plan for charting a recovery in the new year. The recommended measures included finding a new Twitter CEO by the end of January, launching Cybertruck by the end of the year, and issuing conservative guidance for 2023.

In what is seen as a show of confidence in Tesla and its stock, the company’s CFO Zachary Kirkhorn exercised options expiring on Oct. 16, 2028, to buy 13,500 shares at a price of $18.44 per share, a recent Form-4 filing showed. The executive’s cumulative holding now is 204,313.5 shares.

See also: Best Electric Vehicle Stocks

Nio Preannounces Q4 Shortfall: The COVID-19 resurgence in China has hurt domestic EV makers. Nio, Inc. NIO announced this week that its fourth-quarter deliveries will likely be 38,500-39,500 units, down from its earlier guidance of 43,000-48,000 units. The company said the omicron outbreak in many Chinese cities has posed production and delivery challenges.

Li Auto Confident Of Stellar December Numbers: Nio’s peer Li Auto, Inc. LI on Friday said at a media event held at the sidelines of the “Auto Guangzhou 2022” that its December deliveries will exceed 20,000 vehicles. If the target is met, the company would beat the record tally of 15,034 for November by a wide margin. The company also said it plans to hold a dedicated launch event for the Li L7 on Feb. 8, 2023. Beginning on Feb. 9, the Li L7 showroom models and test drives will be available in Li Auto retail stores in China, the company added.

Canoo Alleges Former Executives Stole Trade Secrets, IP: Canoo Inc. GOEV filed a lawsuit in the U.S. Central District Court of California on Dec. 22, alleging that several of its former employees stole intellectual property and trade secrets while going on to start their own rival EV venture, named Harbinger, Business Insider reported. Harbinger was launched in September, and plans to manufacture medium-duty, Class 4 through 7 vehicles for the commercial market.

Workhorse Puts Regulatory Woes Behind: Workhorse Group, Inc. WKHS announced that the SEC has concluded a previously-disclosed investigation and has decided not to take any enforcement action against the company. Offering a business update, the company said it has decided to discontinue the C1000 vehicle program and expects to record a non-cash inventory write-off of about $10 million, plus disposal costs, with regard to this action.

Volkswagen To Unveil New EV: German legacy automaker Volkswagen AG VWAGY said it would announce a new EV at the upcoming 2023 Consumer Electronics Show on Jan. 3. Although the company hasn’t announced any further details, rumors suggest it could be an electrified version of the ID. Aero.

Read next: Tesla Will Further Dominate EV Market In 2023, Says Analyst — Why He Is Slashing Price Target By 24%

EV Stock Performances for The Week And Year:

Photo: Courtesy of Shutterstock.

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