Electric vehicle stocks sold off in the week ending April 5 amid a broader market backdrop of fading rate cut hopes and some company-specific catalysts. The first quarter was difficult for the sector, which was reflected in the sales of the major operators.
Here are the key events that happened in the EV space during the week:
Tesla Rare Deliveries Drop, Model 2 Rumors, and More: Struck by supply and demand concerns, Tesla, Inc. TSLA reported its first year-over-year sales decline since the COVID-19-hit second quarter of 2020.
THE Elon MuskThe company’s first quarter deliveries totaled 386,810 vehicles, down from 422,875 the previous year. Production has also decreased year on year. The company attributed the difficult situation to the transition to production of the new Model 3 Fremont factory and production disruptions at the Giga factory in Berlin. The weak numbers sparked negative reactions from both bulls and bears, although the former group largely clung to its positive long-term outlook.
Musk has remained largely tight-lipped about the weak sales, but was prompted to comment when he was the fund manager Ross Gerber he placed blame for the deficit squarely on the billionaire and called for a board review, citing inaction on his part. In a scathing response to Gerber’s comments, Musk called him an “idiot” and even called him Chinese BYD Company Ltd. WANT I WILL DO ITsupported by Warren Buffett, had a disappointing quarter. Incidentally, BYD, which snatched the global EV crown from Tesla in the December quarter, ceded it back to Tesla as it delivered only 300,114 battery electric vehicles in the first quarter.
Following the delivery update, Tesla stock closed 4.9% lower Tuesday. Tesla shares were hit on Friday when a Reuters report said the company is planning to pull the plug on its low-cost electric vehicle platform. Musk, however, cleared the air and said the report was false. Analysts have begun to contemplate the prospect of Tesla abandoning sub-$30,000 electric vehicles in favor of achieving full automation to float its robotaxi service.
Throughout all of Tesla’s weakness this week, Cathie Wood’s Investment Ark he remained a staunch supporter of the stock and purchased a total of $76 million worth of shares in the electric vehicle maker.
See also: Top EV stocks
Milestone in Producing Rivian Hits: Rivian Automotive, Inc. RIVN, which has been hailed by analysts as a credible initiative in the electric vehicle industry, reported this week that it had produced its 100,000th vehicle. The key vehicle is a white R1S SUV.
The company has a production target of 57,000 electric vehicles this year. The Irvine, California-based company has yet to become profitable and continues to take huge losses on every vehicle it produces. It recently held a global launch event for its upcoming vehicle platform called R2, which is priced lower than its current range.
Nikola’s First Quarter Delivery Beat: Manufacturer of hydrogen and battery electric trucks Nikola Corp. NKLA said it delivered 40 hydrogen fuel cell energy trucks in the first quarter, beating the consensus estimate of 30 units. The company produced 43 trucks during the quarter.
“We are on track for a successful 2024 by continuing the momentum we started in 2023,” said Nikola CEO Steve Girsky.
“We expect further sales growth in future quarters as our HYLA hydrogen fueling solutions come online.”
Ford delays electric vehicle plans: Historic car manufacturer Ford Motor Co. F said this week that it will postpone production of its three-seat SUV in Canada from 2025 to 2027. The next-generation electric pickup, codenamed “T3,” will also be postponed from late 2025 to 2026. The company , however, reiterated its plans to offer hybrid options across its entire North American vehicle lineup by 2030.
See more of Benzinga’s Future of Mobility coverage from by following this link.
The disappointing neighborhood of Canoo: Electric vehicle startup in trouble Canoo, Inc. CANOE saw its shares plunge more than 40% this week after the company issued a grim forecast for 2024 and continued to issue a “going concern” warning. Fourth quarter results were mixed, with a loss smaller than expected, while revenue fell short of forecast.
THE KraneShares Electric Vehicles and Future Mobility Index ETF KAR ended Friday’s session up 0.27% at $22.16, according to Benzinga Pro data. For the week, the ETF fell 1.34%.
Read next: Gene Munster backs Tesla’s focus on robotaxis over low-cost EVs, Gary Black is skeptical of strategy: ‘Institutions would dump the stock’
Weekly performance of electric vehicle stocks:
| Shows (+/-) | |
| Tesla | -6.20% |
| Nio, Inc.NIO | -2.44% |
| XPeng, Inc. XPEV | -3.78% |
| Li Auto, Inc. THERE | -1.49% |
| Fisker | -76.67% |
| Workhorse Group, Inc. WKHS | -12.32% |
| Hyzon Motors, Inc. HYZN | +3.15% |
| Canoo | -40.34% |
| Riviano | -7.76% |
| Lucid Group, Inc. LCID | -8.42% |
| Faraday Future Intelligent Electric, Inc. FFIE | -21.60% |
| Nicholas | -1.92% |
| VinFast Auto Ltd. VFS | -16.30% |
Photo: Shutterstock