Macroeconomic worries continue to weigh down on the electric vehicle space, with stocks mostly retreating during the week ending Oct. 7. Market leader Tesla, Inc. TSLA had a dismal week, pulling back about 15%, amid a negative reaction to its third-quarter deliveries and the ongoing bickering between Twitter, Inc. TWTR and Elon Musk over the latter’s proposal to buy the former.
Now, here are the key events that happened in the EV space during the week:
Tesla Product Updates: Musk tweeted this week that Tesla Semi will be made available to PepsiCo, Inc. PEP beginning on Dec.1 and this was later confirmed by the beverage giant. This would increase the number of vehicles in its lineup to five. The announcement comes as a surprise, as the Semi, which was first announced in 2017, was not expected to go into production until 2023. The Tesla CEO also said it would have a range of 500 miles.
Meanwhile, the 9,000-ton Giga Press, from IDRA Group, used for building Tesla’s Cybertruck, has reportedly arrived in Texas and should soon be reaching the Austin Gigafactory. In a reply to a Teslaratti story on the Giga Press, Musk said he "can’t wait to see this beast in action!"
The Cybertruck is likely to be launched in 2023.
The sharp pullback in Tesla shares this week, the worst drop for the stock since March 2020, was primarily a function of worries about potential stock sales by Musk to finance the proposed Twitter buy. Future Fund’s Gary Black opines that the stock will continue to remain under pressure until Musk imparts some clarity in this regard.
Rivian’s Mixed Week: Rivian Automotive, Inc. RIVN started the week with a good tiding. The EV startup reported production and deliveries for the third quarter, which exceeded expectations. By the end of the week, the company had to contend with the recall of all the vehicles it has thus sold due to potential issues with fasteners.
More Heads Roll At Faraday Future: Faraday Future Intelligent Electric Inc. FFIE announced Thursday that its executive Chairperson Sue Swenson, and its directors Scott Vogel and Jordan Vogel resigned from their respective positions. The company clarified that the planned transition was accelerated by death threats and baseless allegations leveled against certain directors. The company also said Adam He will assume the role of non-executive chair on an interim basis.
Nio Deepens European Expansion: Chinese EV startup Nio, Inc. NIO on Friday held its European launch event in Berlin, wherein it announced details of its products and services for the market, including Germany, the Netherlands and Sweden. The ET7, ET5 and EL7, all of which are derived from the new NT2 platform, along with innovative subscription models would be available in these countries, the EV maker said.
Ford Bumps Up F-150 Lightning Price: Pushed into a corner due to input price inflation, Ford Motor Company F said it would raise the price of its 2023 model year F-150 Lightning EV pickup truck by $5,000 to $52,000-$97,000, depending on the model type. This marks a back-to-back price hike, given the company announced a round of price increases only in August. The company also reported September sales, with overall call sales falling about 9% year-over-year, while EV sales nearly doubled during the month.
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EV Stock Performances for The Week:
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