Most major electric vehicle stocks declined in the week that ended on Oct. 27 amid the broader market weakness, with EV leader Tesla, Inc. (NASDAQ:TSLA) extending its lean patch. The space could see some volatility in the near term, as EV companies are set to begin rolling out their third-quarter earnings reports over the next few weeks.
Here are the key events that happened in the EV space during the week:
Tesla Makes It To Elite List And More: Even as Tesla’s stock struggles, the company had something to cheer about this week. The EV maker debuted on Fortune’s list of 100 fastest-growing companies in 2023. Tesla took the second spot, primarily due to its strong earnings per share growth.
The Elon Musk-led company made a positive statement by announcing modest price hikes for some variants of its best-selling electric SUV, the Model Y, both in the U.S. and China. The company added $500 to the price of the Model Y LR range EV in the U.S. and hiked the price of the high-end Model Y Performance variant in China by a little over $1,900. Commenting on the move, Future Fund’s Gary Black said this was a positive signal at a time investors are worried about further margin erosion.
Tesla’s India plans hang in a limbo, given the government’s dogged stance on committing to local manufacturing. India’s Minister for Road Transport & Highways Nitin Gadkari reportedly said in an interview with a local media outlet that the Musk-led company can’t expect concessions on import duties if Tesla chooses to sell made-in-China cars in India. India is a lucrative market with huge untapped potential, which Tesla can’t afford to ignore if it wants to maintain its global EV dominance.
Ford Pushes Back EV Plans: Legacy automaker Ford Motor Co. (NYSE:F) is pushing back the $12 billion EV investment, including capex, direct investment and expense, it had planned earlier, Dearborn’s CFO John Lawler said on a third-quarter earnings call. The executive noted that its Model e EV startup incurred losses of $1.3 billion during the quarter, reflecting a continued investment in the next-generation products and a more challenging market for its Gen 1 products.
Lawler said Ford has taken out some Mustang Mach-E production, and is slowing down several investments. It made a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky. “We have also said we are evaluating our BlueOval Battery Park Michigan plant to determine the best path forward,” Lawler added.
Mercedes-Benz Warns Of ‘Pretty Brutal’ EV Market: German luxury automaker Mercedes-Benz Group AG (OTC:MBGAF) (OTC:MBGYY) reported disappointing third-quarter results this week and warned of a “pretty brutal” EV market. Blaming the heavy price cuts in the EV market and supply chain challenges, the company lowered its full year guidance to the low end of its guidance for 12-14% adjusted return on sales forecast for the cars division.
Nikola To Get $165M From Tainted Founder: Struggling electric truck maker Nikola Corp. (NASDAQ:NKLA) said in a SEC filing that an arbitration panel in New York approximately awarded the company $165 million plus interest in an arbitration proceeding with its founder Trevor Milton.
The panel determined last week that the company was due the funds for “costs and damages arising from actions that were the subject of government and regulatory investigations, including the December 2021 Securities and Exchange Commission settlement and associated civil penalty.” In December 2021, Nikola reached an agreement to pay $125 million in settlement to the SEC over charges that it had defrauded investors by misleading them about its products, technical capacity and business prospects.
Fisker Cuts EV Prices: Newbie Fisker, Inc. (NYSE:FSR), which began deliveries of its the Ocean SUV in May, went with the industry tide and announced price cuts. The company cut the prices of its top trim Extreme by $7,500 to $61,499. Customers who have already ordered and have yet to take deliveries will get a $7,500 price adjustment, it added. The company said it has opened orders for the 2024 models of all trims, with Ocean Ultra and Sport models seeing upward price adjustments of $3,000 and $2,000, respectively.
Produced in association with Benzinga