Electric-vehicle shares continued to bounce around the bottom in the week that ended on Jan. 26, with Tesla, Inc.ās TSLA disappointing fourth-quarter results weighing down on the space. The Elon Musk-led companyās 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:
Teslaās 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 Woodās 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. 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 āhalf-dayā 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 āRivian R2 launch.ā
Separately, Needham EV analyst Chris Pierce cut his price target for the stock from $25 to $22 even as he reiterated a āBuyā rating. āWe disagree with bearish investors who see RIVN becoming demand constrained in real time, but we lower our ā24 delivery estimates to better reflect potential initial ā24 vehicle production guidance, pushing our gross margin estimates lower,ā the analyst said.
See Also: Best Electric Vehicle Stocks
Canoo Flouts Contract Win: Despite struggling with a liquidity crunch, Canoo, Inc. 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 āpart of the USPS's $40 billion investment strategy to upgrade and improve the organizationās processing, transportation, and delivery networks,āā 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. GM and Honda Motor Company Ltd. 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 āworld-class hydrogen power solutionsā provider that will supply both companies.
āGM 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,ā the companies said.
Check out more of Benzingaās Future Of Mobility coverage byĀ following this link.
Hyzon Begins Deliveries Of Fuel-Cell EVs: Fontana, California-based Hyzon Motors, Inc. 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 optionĀ for an additional 30 FCEVs, it added.
The KraneShares Electric Vehicles and Future MobilityĀ Index ETF KARS ended Fridayās 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. NIO | +1.32% |
XPeng, Inc. XPEV | -6.95% |
Li Auto, Inc. LI | -2.20% |
Fisker, Inc. FSR | +2.53% |
Workhorse Group, Inc. WKHS | +0.39% |
Hyzon | +28.66% |
Canoo | +0.16% |
Rivian | -1.23% |
Lucid Group, Inc. LCID | -2.21% |
Faraday Future Intelligent Electric, Inc. FFIE | -11.65% |
Arrival ARVL | -35.18% |
Nikola Corp. NKLA | +8.51% |
VinFast Auto Ltd. VFS | -1.00% |
Photo: Shutterstock
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