EV stocks bucked the broader market downturn and ended mostly higher, although market leader Tesla, Inc. (NASDAQ:TSLA) was down for a fourth straight week. Charging stocks also came under selling pressure, while China EV stocks recorded handsome gains.
Here are the key events that happened in the EV space during the week:
Tesla Bears Brunt Of Non-Tesla Headlines: Tesla stock remained under pressure amid fears that production disruption in China will impact the company's fundamentals in the near term. Citing the slow ramp following restart of production at Giga Shanghai, longtime Tesla bull and Wedbush analyst Dan Ives took down his price target for the stock from $1,400 to $1,000.
Reports suggest that despite Shanghai's gradually easing of COVID restrictions, Tesla will have to continue with closed-loop production until mid-June. The company, which is currently running a single shift at the plant, is expected to revert to double shifts in the unfolding week.
Tesla CEO Elon Musk announced on Twitter that the company plans to hold its second AI Day on August 19 and also suggested the event would serve as a recruitment drive to attract fresh software/AI/chip talent.
Some of Tesla stock weakness is also attributable to updates on Musk's pursuit of social media platform Twitter, Inc. (NYSE:TWTR). Even as Musk has backtracked, citing inaccuracies in the reporting of the number of spam accounts on the platform, it has emerged that he may be legally bound to complete the transaction. Musk also faced a setback after a media outlet broached the issue of the Tesla CEO and his SpaceX venture paying $250,000 to settle a sexual misconduct claim against him in 2018.
Musk brushed off the allegations as false claims and suggested that there is a political angle to the development, in apparent reference to him announcing that he is switching his allegiance to the Republican Party. He also tweeted that Tesla is looking to set up a legal department to initiate and executive lawsuits.
In another development, Tesla was removed from S&P's ESG Index following an annual update to the list, with the agency reasoning that the company's "lack of a low-carbon strategy" and "codes of business conduct," along with claims of racism and poor working conditions reported at the Fremont plant leading to the move.
Related Link: Bullish Tesla Analyst Cuts Delivery Estimates, PT On This 'Epic Disaster' Headwind
China Discusses EV Subsidy Extension: Reports suggest that the Chinese government has initiated talks with domestic EV makers regarding an extension of subsidies through the end of 2023. This is seen as a welcome development as the industry is reeling under the impact of geopolitical tensions.
Nio, Inc. (NYSE:NIO) kept its tryst with Singapore, as the Chinese EV startup successfully listed on the Singapore stock exchange on Friday. The company also said it plans to have Singapore as a research hub for AI and self-driving. Additionally, Nio shares are to be added to both Hong Kong's benchmark Hang Seng Composite Index and the Hang Seng Tech Index, beginning June 13.
Fisker Confirms Production Of Second EV Model: Fisker, Inc. (NYSE:FSR) and partner Hon Hai Precision Industry Company Limited (OTC:HNHPF) announced completion of the acquisition of a manufacturing plant in Ohio and confirmed that the two companies will start manufacturing the PEAR EV, having a base price of under $29,900, in 2024.
Lordstown Names CEO To Additional Role of Chairman: Lordstown Motors Corp. (NASDAQ:RIDE) announced following its annual shareholder meeting, that Daniel Ninivaggi will assume the dual roles of chairman and chief executive officer. The company also elected two independent directors to its board.
Honda Teases Prologue EV : Japanese automaker Honda Motor Company Limited (NYSE:HMC) announced a teaser image of its Prologue electric SUV, which would be its first EV to go on sales in the U.S. Prologue will be the first of the two EVs the company plans to co-develop with General Motors Corporation (NYSE:GM). It is expected to be delivered in 2024.
EV Stock Performances for The Week:
Related Link: How Tesla Is Helping Home State Texas Reduce Heatwave Strain On Its Electric Grid
