© Reuters. EV Week In Review: Tesla’s Giga Shanghai Up And Running, Apple Car Dealt Further Blow, Nio’s Rumored US Plans And More
EV stocks mostly advanced in the week ending May 27, with the broader market strength supporting the turnaround. Tesla, Inc. (: TSLA) snapped its four-week losing streak and rallied, while Fisker, Inc. (NYSE: FSR), XPeng, Inc. (NYSE: XPEV) and Arrival (NASDAQ: ARVL) were among those that didn’t participate in the uptrend.
Here are the key events that happened in the EV space during the week:
Tesla Giga Shanghai Resumes Double Shift: The slow ramp of Tesla’s Giga Shanghai left investors worried over the company not being able to meet its long-term target of 50% growth. The factory, however, came roaring back this week. Tesla resumed double-shift production after running a single shift since it restarted on April 19 following a 22-day shutdown.
Incidentally, a slew of sell-side analysts lowered their price targets for Tesla shares, citing the slow ramp at the factory. Daiwa Securities analyst Jairam Nathan and Jefferies analyst Philippe Houchois recently dropped their price targets, the former to $800 and the latter to $1,050.
Meanwhile, Cathie Wood’s Ark Invest resumed its Tesla buying after selling the stock for several months.
In another news, the National Highway Traffic Safety Administration, reportedly sought information from Tesla regarding a fire accident involving a newly-purchased Model Y vehicle in Canada.
Tesla’s Elon Musk reportedly told reporters in Brazil that full-self driving capability will now likely to be achieved only around the same time next year. This is as opposed to the previous expectations of accomplishing level 4 autonomy by 2022.
Rumors Abound On Nio’s Expansion Plans: At least two reports that appeared this week suggest Chinese electric vehicle manufacturer Nio, Inc. (NYSE: NIO) may not be attaching too much significance to near-term noises but is positioning itself for long-term growth.
It is rumored that the company is planning to set up a manufacturing plant in the U.S. Additionally, the company was reported to have filed with the local Chinese authorities for the setting up of lithium-ion battery labs and a pilot production line for batteries in Shanghai.
Related Link: Tesla Can’t Take Cover Under ‘Arbitration’ Proceedings In Sexual Harassment Lawsuit, Judge Rules
Fisker To Raise $300M From ATM Equity Offering: Fisker announced this week it has entered into an at-the-market distribution agreement with JPMorgan (NYSE:) Securities for the sale of Class A common shares that would raise gross proceeds of up to $350 million. The company expects to use the proceeds to develop its PEAR budget EV.
Rivian Manufacturing Executive Departs: Rivian Automotive, Inc.’s (NASDAQ: RIVN) executive vice president of manufacturing engineering Charly Mwangi has quit, Bloomberg reported, citing an internal email from chief executive officer R.J. Scaringe.
The company is shuffling its executive team, as it aims to segregate business lines into vehicles for commercial business and for retail sales. Incidentally, Magna International, Inc. (NYSE: MGA) executive Frank Klein will become the company’s chief operating officer starting on June 1.
Apple (NASDAQ:) Car Project Loses Another Executive: Apple, Inc. (NASDAQ: AAPL) is facing challenges in getting its act together with its self-driving car venture. In the latest setback, the Apple Car project team Director Christopher Moore left the company to join lidar manufacturer Luminar Technologies, Inc.’s (NASDAQ: LAZR) software team.
Volkswagen (ETR:) Confident On Overtaking Tesla: Herbert Diess, CEO of German auto giant Volkswagen AG (OTC: VWAGY), which has pivoted into EV manufacturing, reportedly told CNBC at the World Economic Forum, in Davos, Switzerland, that the company remains committed to overtaking Tesla as the world’s largest EV manufacturer by 2025.
EV Stock Performances for The Week:
Related Link: Nio To Invest $32M Toward Vertical Integration Of Battery Manufacturing: Report
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