Just as the week was shaping up strongly for the market, Fed Chair Jerome Powell played spoilsport, triggering a steep sell-off on Friday. Electric vehicle stocks were no exception, although a few did manage to close in the green. Tesla, Inc.’s TSLA stock split was the highlight of the week’s news flow.
Here are the key events that happened in the EV space during the week:
Tesla’s Stock Split: Tesla’s shares began trading on a split-adjusted basis on Thursday. The much-awaited corporate action did not trigger a positive reaction, with the stock closing down in the two sessions following the split. Economic worries were primarily to blame for the predicament.
Tesla vehicles can soon connect directly to Starlink satellites for drawing a low-bandwidth internet connection, CEO Elon Musk said on Twitter. The comments came after Musk’s SpaceX announced a partnership with T-Mobile US, Inc. TMUS for providing cellular connectivity everywhere in the U.S.
Tesla launched a new rear-wheel-drive Model Y vehicle for the European market with a starting price of 53,990 euros ($53,966), Teslarati said.
After software expert Dan O’Dowd uploaded videos of a Tesla vehicle navigated by full-self-driving software repeatedly crashing into child-sized mannequins, the company took exception and demanded that the videos be taken offline.
Ford Raises Prices: Ford Motor Company F, which had closed the order book for the 2022 model Mustang Mach-E last year following chip shortages, began taking reservations this week. The company also hiked the price of the EV, citing significant material cost increases, supply chain constraints, and evolving market conditions. The starting price of the model is now $46,895 for the rear-wheel-drive base trim standard range version, a 7% hike in price.
China EV Makers Gets Reprieve: In a landmark development, SEC’s Public Company Accounting Oversight Board and the China Securities Regulatory Commission agreed to share audit reports of accounting firms registered in mainland China and Hong Kong. This removes an overhang that was threatening the delisting of several Chinese companies, including EV makers, from U.S. exchanges, beginning in 2024.
Nio Clears Its Name: Nio, Inc. NIO announced that the independent committee of the board it instituted to investigate allegations made by short-seller Grizzly Research did not find any issues with its financial statements. Grizzly Research had alleged that the Chinese EV startup is likely using an unconsolidated related party to inflate revenue and profitability.
California To Phase Out Gasoline Cars: The California Air Resources voted to implement a total ban on the sale of new gasoline-powered cars, beginning in 2035. The state, which is the nation’s biggest auto market, also agreed on an interim quota toward the achievement of this complete ban.
Lucid Taps Apple Veteran For Platform Software Engineering: Lucid Group, Inc. LCID said it has appointed Derrick Carty as VP of Platform software engineering. His responsibilities in the newly-created position, include ADAS, audio infotainment, embedded software, and systems architecture. He has over two decades of experience at Apple, Inc. APPL.
Volkswagen, Mercedes-Benz Turn To Canada For Battery Materials: Volkswagen AG VWAGY and Mercedes-Benz Group AG DMLRY announced a memorandum of understanding with the Canadian government to source EV battery raw materials such as lithium and cobalt. The move could have been precipitated by the climate bill passed by the U.S. that requires component sourcing and production in North America to avail of the EV tax credits.
EV Stock Performances for The Week:
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