Benzinga - Electric vehicle stocks meandered to a mixed close in the week ending April 28, as earnings optimism following positive big tech’s quarterly reports lifted sentiment. EV leader Tesla, Inc. (NASDAQ:TSLA) continues to struggle amid apprehensions over the company's “razor-and-blade” business strategy.
Here are the key events that happened in the EV space during the week:
Tesla Downgrade, Price Cut And More: Wall Street analysts have begun to question Elon Musk's strategy of sacrificing Tesla’s near-term margin in favor of the high-margin revenues the company could reap from its future full-self-driving software. The skepticism stems from the fact that the timeline for the wider FSD launch is uncertain, amid several controversies concerning the technology and regulatory bottlenecks.
Jefferies analyst Philippe Houchois, a longtime Tesla bull, this week, dropped his “Buy” rating and stepped to the sidelines. He is highly skeptical that demand elasticity will offset the lower prices.
Future Fund's Gary Black has also stepped up his attack on Tesla over the company’s strategy and has suggested several options, such as advertising, to push sales.
Tesla announced a $1,000 reduction for the seven-seater option of its Model Y this week, as the company persists with its aggressive pricing strategy.
After Tesla nominated co-founder and former executive JB Strauble to its board, proxy advisory firm Glass Lewis asked shareholders to reject the company-sponsored proposal. "The unwinding of conflicting relationships between former management and board members is more likely to be complete and final after five years," the proxy advisory firm reportedly said.
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Fisker Preps For European Deliveries: Fisker, Inc. (NYSE:FSR) shares jumped 44% this week, after the company shared an update on the timing of its European deliveries. In a press release, the company said European regulators have certified the Ocean SUV and that it intends to start deliveries to European customers on May 5.
GM To Halt Chevy Bolt Production: On a first-quarter-earnings call, General Motors Corp. (NYSE:GM) CEO Mary Barra announced that the company will end production of its Chevy Bolt EV and EUV at the end of the year. The proposed move comes even as the company is increasingly transitioning to EVs. The Michigan plant used to produce the Bolt will be used instead to produce Chevy Silverado and GMC Sierra trucks in 2024.
BYD Q1 Revenue, Earnings Surge: Warren Buffett-backed Chinese EV startup BYD Company Limited (OTC:BYDDY) (OTC:BYDDF) reported 400% year-over-year revenue growth for the first quarter. Earnings also soared. More importantly, the company was able to preserve margins despite increasing competition from domestic rivals.
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IEA Sees EV Sales Go Through The Roof: The International Energy Agency released its annual EV sales forecast for 2023, which should excite players in the industry. The agency expects EV sales to rise 35% year-over-year in 2023 to a record tally of 14 million units. The share of EVs to the total vehicle market is also expected to see a bump up from 14% to 18%, the agency added.
Read Next: Elon Musk Isn’t Distracted Away From Tesla, Former Exec Says: ‘Incredible At Managing His Schedule’
EV Stock Performances for The Week:
| Weekly Change | |
| Tesla | -0.45% |
| Nio | -5.52% |
| XPeng | +2.70% |
| Li Auto | +2.49% |
| Fisker | +44.72% |
| Workhorse | -4.91% |
| Lordstown | +6.91% |
| Hyzon | -4.14% |
| Canoo | -0.76% |
| Rivian | +4.65% |
| Lucid | +12.95% |
| Faraday Future | -21.72% |
| Arrival | -10.46% |
| Nikola | -4.02% |
| Kandi Technologies | +12.37% |
| Blink Charging | -2.20% |
| Quantumscape | -6.04% |
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