EV stocks fell across the board this week as they towed in line with the broader market, with some company-specific news and geopolitical tensions also serving to exacerbate sentiment. Tesla, Inc. (NASDAQ:TSLA) was all over the place this week, starting with its maverick CEO Elon Musk's disclosure of a stake purchase in Twitter, Inc. (NYSE:TWTR) and culminating in the grand Cyber Rodeo fest.
Here are the key events that happened in the EV space during the week:
Tesla Makes Waves With Cyber Rodeo Show: "Cyber Rodeo" was the talk of the town this week, as it heralded the grand opening of Tesla's fifth Gigafactory – Giga Texas. The factory, built at a cost of over $1 billion, will likely help alleviate the company's high-class problem of demand outstripping supply. The company hopes to augment its Model Y production capacity by 500,000 units, with the vehicles rolling off the production lines of its Giga Texas.
Prominent Tesla bull Dan Ives of Wedbush described the factory as the "heart and lungs" of future EV production.
The Giga Fest was a gala event, with the highlight of the gathering being Musk's grand entrance, wearing a cowboy hat, in one of the oldest product cars Tesla built.
The Tesla CEO also shared some details on the company's product road map. The long-delayed Cybertruck will be handed over to customers in 2023, and it is "going to be great," Musk said as a prototype of the pickup truck rolled onstage.
He also said a dedicated "futuristic" robotaxi will be part of its future product lineup.
Earlier in the week, Musk created a stir by making public a passive stake he took in Twitter. Later, the social media platform confirmed that he will join the company's board.
In another development, reports suggested that Musk and Lucid Group, Inc. (NASDAQ:LCID) CEO Peter Rawlinson attended a meeting with officials of the Biden administration to discuss EVs and charging infrastructure. This is definitely a reversal in the stance of the U.S. government, which had in the past left Musk & team out of its discussions on electrification plans for the U.S.
On a negative note, Tesla continued to face production issues at its Giga Shanghai. As Shanghai vigorously pursues a "zero Covid" policy, the factory had to be shut down again this week.
Related Link: Why This Tesla Analyst Sees Giga Texas Serving A 'Hearts And Lungs Of Future EV Production'
Rivian Beats On Q1 Production But Investors React With Caution: After missing production targets in the fourth quarter, Rivian Automotive, Inc. (NASDAQ:RIVN) confirmed that it produced 2,553 vehicles in the first quarter, which was more than what most analysts had estimated. Deliveries of 1,227 units, however, trailed expectations. Reacting to the data, RBC Capital Markets analyst Joseph Spak said he is confident of the company beating production targets for the year. At current levels, the stock reflects strong mid-term risk/reward profile, he added.
Investors weren't too pleased with the numbers and sent the stock sharply lower for the week.
GM Progresses With Small, Incremental Steps: General Motors Corporation (NYSE:GM) announced an expanded collaboration with longtime partner Honda Motor Company (NYSE:HMC) to manufacture affordable electric vehicles with sub-$30,000 pricing. Mass production of these vehicles will begin by 2027, the companies said.
The companies are also discussing a future EV battery technology collaboration aimed at lowering the cost of electrification and improving performance.
Toyota Takes To Cameras For Self-driving Tech: Japanese automaker Toyota Motor Corporation's (NYSE:TM) Woven Planet has reportedly used cameras to gather data and effectively train its self-driving system. This will likely bring down cost and scale up technology. The Toyota unit is apparently following in the footsteps of EV pioneer Tesla, which has preferred cameras to lidar technology in its self-driving cars.
EV Stock Performances for The Week:
Related Link: Rivian Analyst Thinks Stock Reflect Strong Mid-term Risk/Reward Profile But Warns Of This Imminent Risk
