Electric vehicle stocks have underperformed the broader market this week, not really benefiting from a dovish Federal Reserve. Tesla, Inc. TSLAdespite finishing the week higher, he found himself under pressure on the back end.
Here are the key events that happened in the EV space during the week:
Tesla cuts production in China, Lawmaker Renews Request for SEC Investigation and More: Tesla shares, which posted a modest recovery earlier in the week, reversed course as concerns about a first-quarter delivery failure intensified. This is stated by a Bloomberg report Elon MuskThe company asked its Giga Shanghai workers to reduce a typical 6.5-day work week to a five-day schedule. This has raised concerns about a slowdown in demand in one of its key markets.
Sen. Elizabeth Warren (D-Mass.) this week renewed his call for the SEC to investigate Musk and the company’s board, citing “possible misappropriation of Tesla assets and conflicts of interest arising from Mr. Musk’s dual roles in Tesla and “, formerly Twitter. The allegations take on importance as a Delaware court earlier this year struck down Musk’s $55.8 billion 2018 compensation plan.
Tesla has been criticized by fund managers for luring buyers with the threat of a price hike once the quarter ends. Ross Gerber Gerber’s Kawasaki Wealth and Investment Management said it was an “old trick,” while Deepwater Asset Management’s Gene Munster said that “it’s difficult to read between the lines what a $1,000 end-of-month discount followed by a $1,000 price increase means for demand and margins.”
See also: Top EV stocks
Ford seeks to capitalize on India’s new electric vehicle policy: Two and a half years after leaving the Indian market, Ford Motor Co. F is planning a comeback, taking advantage of the country’s changed policy on electric vehicles, Auto Car India reported.
The president of Ford’s International Markets Group, Kay Hart, has reportedly visited the country to assess next steps regarding restarting operations at its facility in southern India. Blue Oval is considering producing electric vehicles in Chennai, the capital of the southernmost state of Tamil Nadu, aimed at the Indian and overseas markets, with the electric vehicles likely to be based on its new cost-effective platform, the report said.
Fisker lifeline, production pause: Also as Fisker, Inc. FSR is negotiating with a major automaker to avoid a potential bankruptcy filing amid a liquidity crisis, the company announced this week a funding commitment from an existing investor providing up to $150 million in gross proceeds.
Financing is subject to certain conditions, including the filing of Form 10-K. The company also said it will suspend production for six weeks starting the week of March 18, to align inventory levels and advance strategic and financial plans.
BYD Eyes Greek market: Warren Buffett-Backwards BYD Co. Ltd. WANT I WILL DO IT has been rapid with its international expansion. This week, the Chinese electric vehicle maker said it is entering the Greek passenger car market with the launch of its Yuan Plus crossover, known as Atto 3 in foreign markets, and the Seal sedan. The company also said that it will introduce more models in the European country in the future.
See more of Benzinga’s Future of Mobility coverage from by following this link.
The Canoo facility designated as FTZ: Manufacturer of lifestyle electric vehicles Canoo, Inc. GOEV announced that the U.S. Department of Commerce has approved its Oklahoma City plant as a foreign trade zone, marking a significant milestone that will accelerate its “Made in America” electric vehicle manufacturing strategy, improve unit profitability and will allow for a quicker path to breakeven.
The company said it now sources more than 90% of its components from the United States and allied countries. Approximately 70% of the components come from North America, the remainder from the rest of the world.
For international sales, the FTZ will significantly improve profitability by reducing the cost of vehicles by up to 5% on components imported from the rest of the world. “This cost reduction will occur as these Made in America vehicles are exported to international markets, which we expect to announce in the near future,” the company said.
THE KraneShares Electric Vehicles and Future Mobility Index ETF KAR ended Friday’s session down 2.01% at $22.44, according to Benzinga Pro data. For the week, the ETF fell 0.36%.
Read next: Forget California, Tesla goes national: Electric dominance spreads to 7 states in one year
Weekly performance of electric vehicle stocks:
| Shows (+/-) | |
| Tesla | +4.44% |
| Nio, Inc.NIO | -12.37% |
| XPeng, Inc. XPEV | -11.62% |
| Li Auto, Inc. THERE | -19.25% |
| Fisker | -26.59% |
| Workhorse Group, Inc. WKHS | -21.13% |
| Hyzon Motors, Inc. HYZN | -9.09% |
| Canoo | +120.62% |
| Rivian Automotive, Inc. RIVN | -2.17% |
| Lucid Group, Inc. LCID | +2.59% |
| Faraday Future Intelligent Electric, Inc. FFIE | +35.77% |
| Nikola Corp. NKLA | +2.84% |
| VinFast Auto Ltd. VFS | -1.20% |
Now read: Tim Cook’s recent visit to China was to send a clear message to Xi Jinping, says top analyst: ‘Apple is busy in China’
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