Electric vehicle stocks continued to head lower in the week ending June 17, with macroeconomic concerns weighing down on the industry. Stocks came under significant selling pressure ahead of the Fed decision but saw a relief rally on Wednesday post the decision. Further selling followed on Thursday, and stocks moved back up on Friday to end flat to slightly higher.
The Chinese EV trio once again bucked the downtrend.
Here are the key events that happened in the EV space during the week:
Tesla Announces Another Price Hike: Tesla, Inc. (NASDAQ: TSLA) EVs are more expensive now, with the Model Y Long Range and Performance Variant prices revised up in the U.S. by about $2,000 to $3,000.
The Model 3 Long Range sedan's price was nudged up by $2,500, while the prices of Model S dual-motor all-wheel drive, Long Range and the Model X were increased by $5,000 and $6,000, respectively. Close on the heels of the increase in the U.S., the company also bumped up prices of its vehicles in China.
In another development, a National Highway Traffic Safety Administration report showed that Tesla accounted for about 70% of the reported crashes involving advanced driver assistance systems since June. Tesla cars were involved in 273 accidents out of the 392 crashes reported during the period.
As a troubling quarter is approaching its end, Tesla's chief executive officer Elon Musk issued a war cry, calling his troops to rally hard and give that final thrust to salvage an otherwise tough quarter. Commenting on this, Morgan Stanley (NYSE:MS) analyst Adam Jonas said Tesla is used to having a big final two weeks, implying that it can still make up for the slow quarter. The analyst also sees any lost production/deliveries in the second quarter as providing "pent-up sequential tailwinds" for third quarter results.
After bringing back enhanced autopilot to Australia and New Zealand, Tesla is likely to bring it to other markets as well, Musk suggested in a tweet. Enhanced autopilot provides the leeway to try most of the full self-driving functionality at a cheaper price.
Ark Invest's Cathie Wood continued to add Tesla stock during the week, but in small quantities.
Related Link: Tesla Gets Indonesia Invite To Set Up Massive EV Factory: Report
Nio Holds Product Launch Event: Nio, Inc. (NYSE: NIO) stock rallied strongly from depressed levels this week amid a product launch event the Chinese EV startup hosted this week. There were no surprises though. The company announced the ES7 SUV that promises superior performance, visual appeal, luxury experience and utility. The company also announced improved versions of its existing line-up, including the ES8 and ES6 SUVs and the EC6 sports coupe.
Meanwhile, Nio was drawn into a legal fight after Volkswagen (ETR:VOWG_p) AG's (OTC: VWAGY) Audi sued the company in Germany, alleging that the ES6 and ES8 model names infringed the trademark rights of its S6 and S8 models.
Toyota Resists Shareholder Call For Full Electrification: Toyota Motor Corporation (NYSE: TM) had to face the ire of its shareholders this week over the company's EV strategy. Even as its shareholders heaped pressure on the world's biggest automaker to go fully electric, the company said its focus is on decarbonization. The company said that since it operates in different markets, it has to pursue different decarbonization paths and that it will develop a wide range of environmentally-friendly vehicles, including hybrids and zero-emission cars.
Sony, Honda to Set Up EV JV: Sony Group Corporation (NYSE: SONY) and Honda Motor Co., Ltd. (NYSE: HMC) announced the signing of an agreement to set up a joint venture to be named "Sony Honda Mobility Inc." The venture will be established this year, and it will start producing its first EVs and begin providing mobility services in 2025.
EV Stock Performances for The Week:
Related Link: Nio Premieres ES7 SUV, Revamped 2022 Models: What EV Investors Need To Know
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