Electric vehicle stocks ended uniformly lower in the week ended Feb. 10, although market leader Tesla, Inc. TSLA bucked the downtrend, courtesy of the strong gains notched in the first four sessions of the week. The economy continues to be a sore spot, stifling any hopes of a potential fightback.
Now, here are the key events that happened in the EV space during the week:
Tesla’s Stock Run, Modest Price Hikes And More: Ahead of Friday’s retreat on Friday, Tesla shares were on an eight-session winning streak as buyers returned. The stock even breached the $200 psychological resistance, almost doubling from the Jan. 3 lows, before inflation worries, brought it lower on Friday.
Investors are increasingly hopeful of Tesla’s fundamentals, especially after the company’s resilient performance in the fourth quarter. Tesla’s first-ever Investor Day, scheduled for March 1, is a near-term catalyst that could support the stock. That said, the consumer price inflation report for January, due on Feb. 14, could pose a near-term risk.
The very premise of the broader market rally seen ahead of this week is the Fed relenting and pausing its string of rate hikes. If the inflation data implies otherwise, an extension of Friday’s lean run cannot be ruled out.
After announcing sharp downward price adjustments across geographies, Tesla announced small price hikes in both China and the U.S. this week. The price of the base model – the Model Y Rear-Wheel-Drive – was raised by 0.8 percent in China to 261,900 yuan ($38,461). The company also announced a $500-price increase each for the Model Y All-Wheel-Drive Standard Range and the Model Y Long Range in the U.S. The much-awaited Cybertruck, which is set to go into production later this year, has been spotted and reported by several Tesla influencers. More recently, a Twitter user going by the handle @greggertruck shared a picture of the same
Ford Rumored To Announce Michigan Battery Plant: Ford Motor Company F will likely announce a multi-billion-dollar EV battery plant along with China’s Contemporary Ameperex Technology Co. Ltd, or CATL, on Monday, the Detroit News reported. The project worth $2.5 billion would seek to build lithium-ion-phosphate batteries for Ford’s EVs. The U.S. automaker will own, build and operate the plant, while CATL will provide the technology.
In separate news, Ford has substantially cut its stake in EV startup Rivian Automotive, Inc. RIVN, a recent regulatory filing by the latter showed. The legacy automaker now has just a 1.15% stake in Rivian, representing 10.5 million shares. Amid the plunge in Rivian shares, Ford has reported a $7.3 billion write-down on its investment in 2022.
Faraday Future Gets Funding For Production Start: Faraday Future Intelligent Electric Inc. FFIE announced a series of agreements for financing and a modification to a major provision in the terms of the warrants from the previously secured financing agreements. Once consummated, the company said it will have raised all the necessary funding to start production of the FF 91 Futurist.
Canoo To Raise $52.5M Through Registered Direct Offering: Cash-strapped Canoo Inc. GOEV announced definitive agreements with certain institutional investors for the sale of up to 50 million shares of its common stock along with warrants to purchase up to 50 million shares, at a combined price of $1.05 per share and accompanying warrant. The company expects gross proceeds of $52.5 million from the offering.
Volkswagen’s Board Discusses Plan For Expediting EV Transition: The intent to make a mark in the EV arena was evident, as German automaker Volkswagen AG’s VWAGY management presented a five-year investment plan to the company’s Supervisory Board in a bid to expedite the shift to EVs and revamp its software strategy, Reuters reported.
EV Stock Performances for The Week: