Tesla 'Is The Only Investable' EV Play, Says Analyst, As Electric Vehicle Industry Navigates A Tough 2023: Year In Review
Portfolio Pulse from Shanthi Rexaline
In 2023, the EV industry faced production and demand challenges, with Tesla, Inc. (TSLA) doubling its stock value after aggressive price cuts. Rivian Automotive, Inc. (RIVN) also ended the year positively, maintaining production forecasts and managing costs. Global EV adoption slowed due to affordability and infrastructure issues. Tesla's North American Charging Standard gained significant adoption from other automakers. Legacy automakers scaled back EV plans due to strikes and demand slowdown. Analyst Gary Black views Tesla as the only investable EV company, with BYD and Rivian as potential winners. The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) fell 7.85% for the year.
December 30, 2023 | 3:28 pm
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NEGATIVE IMPACT
The KraneShares Electric Vehicles and Future Mobility Index ETF fell 7.85% in 2023, reflecting the broader challenges faced by the EV industry.
KARS' performance is indicative of the overall EV market conditions, which have been tough in 2023, leading to a decline in the ETF's value.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Rivian maintained production targets and managed costs effectively, ending the year positively and is expected to become gross margin positive in 2024.
Rivian's ability to maintain production forecasts and manage costs in a challenging year indicates strong operational management and potential for future profitability.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Tesla's aggressive pricing strategy and stock rally position it as a strong player in the EV market, despite margin squeeze.
Tesla's stock performance and strategic pricing moves have reinforced its market leadership, making it a favorable investment despite reduced margins.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100