Electric vehicle stocks witnessed a turbulent week, diverging from overall market trends. Tesla, Inc. TSLA faced scrutiny over its first-quarter delivery estimates, while Rivian Automotive, Inc. RIVN garnered investor applause for unveiling new models.
Here are the highlights from the EV sector this week:
Tesla’s Challenges and Initiatives: The past week brought uncertainty for Tesla as concerns loomed over potential delivery misses in the first quarter. Renowned fund manager, Gary Black, predicted a downward revision in the consensus delivery forecast of 474,000 units for Q1. Black suggested that Street estimates for 2024 deliveries and earnings per share may also see downward adjustments in the coming weeks. Moreover, Tesla’s European operations faced disruptions due to a suspected arson, halting production at the Giga Berlin factory. Despite this setback, Tesla announced incentives such as free supercharging for new car deliveries by the end of March, aiming to drive sales momentum.
Rivian Unveils R2 and More: Rivian made waves with the global launch of its latest midsize electric SUV, the R2, priced at $45,000. Alongside the R2, CEO R.J. Scaringe introduced the R3 EV, a midsize crossover, and the R3X, a high-performance variant. These models will offer two battery sizes, enabling a range of over 300 miles on a single charge and rapid acceleration. With the R2 generating over 68,000 reservations within 24 hours of its announcement, Rivian’s entry into the EV space has evidently captured consumer interest.
Ford’s EV Strategy: Legacy automaker Ford Motor Co. F faced challenges in its EV transition, with the Mustang Mach-E sales struggling. Emphasizing hybrid vehicles, Ford saw a 10.5% sales increase in February, driven by the popularity of family crossovers, pickups, and hybrids amidst its evolving EV landscape.
Nio’s Upcoming Launch: Chinese EV manufacturer Nio, Inc. NIO disclosed plans during its Q4 earnings call to introduce a mass-market sub-brand named Alps. Set to launch in Q2, the brand’s initial offering, positioned as a cheaper alternative to the Model Y, aims to lower costs by about 10%, ensuring competitive pricing. Nio’s second Alps model, tailored for larger families, is slated for release in the future.
As the EV landscape evolves, companies like Lucid Group, Inc. saw price target adjustments, reflecting shifts in market sentiment. Despite fluctuations, the KraneShares Electric Vehicles and Future Mobility Index ETF KARS navigated market volatility, closing the week at $22.28, down 3.68%.
Diverse performances were witnessed among EV stocks this week, with notable shifts in value and investor sentiment across the sector.
