Benzinga - by Shanthi Rexaline, Benzinga Editor.
Electric vehicle stocks came under selling pressure in the week that ended on Nov. 11 as the broader market weakness triggered some profit-taking. Lucid Group, Inc. (NASDAQ:LCID) did not help matters any further by reporting a disappointing quarter.
Here are the key events that happened in the EV space during the week:
Tesla India Rumors, Swedish Strike And More: The stalemate over Tesla, Inc.’s (NASDAQ:TSLA) India foray continues, but reports suggested that India’s Commerce Minister Piyush Goyal will likely meet Elon Musk in the U.S. next week. Goyal will reportedly discuss plans to set up a Tesla factory in India to manufacture the company’s $25,000 EVs. Musk will also likely push to cut the import duty on fully-built EVs from 100% to 15%.
Tesla is additionally facing labor union issues in Sweden, one of its key European markets. As Tesla mechanics began to strike, they were joined by dock workers affiliated with four powerful unions in the country. This has reportedly disrupted the unloading of Tesla’s vehicles.
Following margin-squeezing price cuts, Tesla has opted to raise prices of its Model Y Long Range and refreshed Model 3 prices in China by 1,500 yuan ($206), according to its Chinese website.
Speaking on the sidelines of the Baron Investment Conference, billionaire investor Ron Baron said Tesla will likely build its $25,000 EV within 18 months. “Wait 'til you see what's going to happen when all of a sudden they start selling cars, instead of $40,000 a piece, for $25,000 a piece, which is going to happen in about a year or year-and-a-half,” he told CNBC. Baron expects the company to have an annual production capacity of 5 million of this particular car.
President Joe Biden, ahead of addressing United Auto Workers union members at Illinois on Thursday, told reporters that he supports the unionization of workers at Tesla and Toyota Motor Corp. (NYSE:TM).
See also: Best Electric Vehicle Stocks
Lucid Reports Sub-Par Q3, Cuts Production Outlook: Lucid shares sank to a record low this week before closing just off this level. The catalyst was a disappointing third-quarter earnings report that revealed below-consensus revenue. The company also lowered its 2023 production guidance from 10,000+ units to 8,000-8,500 units. Needham analyst Chris Pierce said he sees the Gravity SUV launch and ramp-up to fulfill a large number of orders from Saudi Arabia as potential soft catalysts. “But hard evidence of better numbers is hard to spot currently,” he added.
Fisker In Talks With Automakers For Manufacturing Partnership: Startup Fisker, Inc. (NYSE:FSR) is looking to create a partnership with auto manufacturers to produce its EVs, Reuters reported. “We have two cars that are almost ready. We can bring them to market fast — we just need the capacity,” CEO Henrik Fisker reportedly said. The company is in negotiations with five automakers in an attempt to zero in on a potential manufacturing partner, the report said. The company has begun the commercialization of its Ocean SUV and is working on bringing to market two more EVs. Fisker is due to release its quarterly results Monday after the market closes.
Canoo Unveils American Bulldog: Struggling EV startup Canoo, Inc. (NASDAQ:GOEV) introduced on Friday the “American Bulldog,” a derivative of the Screaming Eagle that was delivered to the U.S. Army for extensive testing in 2022.
It is an electric quad-cab truck with a honeycomb design. “It’s strong and rigid but almost soars like an eagle through harmonized steer-by-wire and brake-by-wire systems,” Canoo said.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Mercedes-Benz’s Charging Initiatives: Mercedes-Benz Group AG‘s (OTC:MBGAF) North American charging network development arm has teamed up with popular travel center chain Buc-ee's to set up EV charging stations across the U.S. The German automaker is set to build charging hubs at various Buc-ee's locations across the country. The project is expected to come to fruition at about 30 stations by the close of 2024.
The KraneShares Electric Vehicles and Future Mobility Index ETF (NYSE:KARS) ended Friday’s session down 3% at $23.96, according to Benzinga Pro data. For the week, the ETF fell 4.28%.
Read Next: Tesla Bear Slams David Sacks As ‘Rich Man’ Who Spits On ‘Working Man’ After Entrepreneur Called Biden’s Unionization Comments ‘Archaic View Of Past’
EV Stock Performances for The Week:
| Performances (+/-) | |
| Tesla | -2.41% |
| Nio | -12.03% |
| XPeng, Inc. (NYSE:XPEV) | -10.97% |
| Li Auto, Inc. (NASDAQ:LI) | +1.65% |
| Fisker | -15.60% |
| Workhorse Group, Inc. (NASDAQ:WKHS) | -10.70% |
| Hyzon Motors, Inc. (NASDAQ:HYZN) | -19.93% |
| Canoo, Inc. (NASDAQ:GOEV) | -10.332% |
| Rivian | -13.04% |
| Lucid Group, Inc. (NASDAQ:LCID) | -17.75% |
| Faraday Future Intelligent Electric, Inc. (NASDAQ:FFIE) | -29.46% |
| Arrival (NASDAQ:ARVL) | -17.69% |
| Nikola | -15.29% |
| VinFast Auto Ltd. (NASDAQ:VFS) | +2.19% |
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