Most underperforming electric vehicle stocks staged a modest comeback in the week that ended on July 21, although market leader Tesla, Inc. (NASDAQ:TSLA) took a tumble as investors shrugged off a second-quarter beat and focused on certain comments from company CEO Elon Musk.
Tesla reported better-than-expected earnings and revenue for the quarter. Its vehicle margin, excluding regulatory credits, even came in better than expected. Investors, however, sent the stock down by about 10% in a post-earnings reaction on Thursday.
Some market watchers blamed the slump on a poor quality-earnings beat that came mainly from Tesla’s other sources of income and lower operating earnings from the company’s core businesses. Others pointed to Musk’s comments that not only left open the possibility of further price cuts but also failed to clarify Tesla’s margin outlook.
Cybertruck, meanwhile, continues to stirs excitement among the Tesla community. Fans shared videos of the electric pickup truck in a different camouflage, creating a buzz. Separately, crowd-sourced data on Cybertruck reservations showed 1.9 million preorders, giving rise to concerns about Tesla’s ability to ramp up production to meet demand. On an earnings call, Musk said the demand for the vehicle was extremely high. The billionaire’s mention of talks with an original equipment manufacturer for its full self-driving software also generated buzz.
Mizuho analyst Vijay Rakesh issued a bullish commentary on Rivian Automotive, Inc. (NASDAQ:RIVN) this week. As EV sales ramp up, the Normal, Illinois-based EV maker is on track to exceed its full-year delivery guidance of 50,000 units, the analyst said.
And with overall industry sales of EVs “ramping well,” Rakesh said he sees potential for Rivian to exceed its 50,000-delivery estimate for 2023. He also upped the price target for the stock from $27 to $30.
“After a strong start to the year, we see potential for strong auto sales momentum, specifically for EV, despite headwinds from a stretched consumer and high interest rates,” the analyst said.
Struggling truck maker Nikola Corp. (NASDAQ:NKLA) said it will sell its Phoenix Hydrogen Hub project to Fortescue Future Industries (FFI). It added that FFI will bring the capital and resources required to fully develop the project, and the two are working toward a hydrogen supply agreement to support Nikola’s Class 8 zero-emission trucks.
Fisker, Inc. (NYSE:FSR) confirmed this week that it will produce 100 Fisker Extreme Vigyan Edition, an all-electric SUV, for the Indian market. The company had established an office in Hyderabad in 2022. It expects to complete the homologation process for India by September and
commence deliveries in the fourth quarter.
Close on the heels of Tesla’s announcement of the production of the Cybertruck, Ford Motor Co. (NYSE:F) slashed prices of all the trims of its rival offering — the F-150 Lightning pickup truck. Although the latter company attributed the cut to factors that include the fall in input prices, analysts see this as a preemptive move ahead of the Cybertruck’s launch.
Produced in association with Benzinga
Edited by Saba Fatima and Asad Ali
