Elon Musk's Optimism Doesn't Rub Off On Investors, Rivian CEO Says R2 Not Model Y Copycat, GM's EV Goals Scaled Back Yet Again And More: Biggest EV Stories Of The Week
Portfolio Pulse from Shanthi Rexaline
This week saw significant developments in the EV sector, with Tesla's mixed earnings report leading to a stock drop, Rivian's CEO discussing the new R2 platform, GM scaling back its EV goals, Xiaomi ramping up EV production, and Lucid securing a battery material deal. The KraneShares Electric Vehicles and Future Mobility Index ETF also saw a decline.
July 27, 2024 | 3:43 pm
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POSITIVE IMPACT
Lucid announced a deal with Graphite One for the supply of anode active materials, ensuring access to American-sourced critical raw materials for its EVs.
The partnership with Graphite One ensures a stable supply of critical materials, which is crucial for Lucid's production and could positively impact its stock.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Xiaomi is on track to meet its annual delivery target of 100,000 EV units for 2024 ahead of schedule, having sold 30,000 units of its SU7 model in just over three months.
Xiaomi's rapid ramp-up in EV production and strong sales performance are positive indicators for the company's future growth in the EV market.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Rivian's CEO discussed the new R2 platform, emphasizing it won't be a Model Y copycat and highlighting the need for diverse EV options. The stock fell 3.22% this week.
While the CEO's comments on the R2 platform are positive, the overall market weakness and lack of immediate catalysts led to a stock decline.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
GM announced delays in its EV plans, pushing back a second EV truck plant and the first Buick EV. This suggests GM may not meet its 2025 production target.
The delays in EV production plans indicate potential challenges in meeting future targets, which could negatively impact investor sentiment.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The KraneShares Electric Vehicles and Future Mobility Index ETF fell 3.84% for the week, despite a slight gain of 0.72% on Friday.
The overall decline in the EV sector, including major players like Tesla and Rivian, contributed to the weekly drop in the ETF.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Tesla's mixed Q2 results, with revenue exceeding expectations but earnings per share missing estimates, led to an 8% stock drop. Investors were concerned about restructuring charges and a drop in volume.
The mixed earnings report, particularly the miss on EPS and concerns over restructuring charges and volume drop, negatively impacted investor sentiment, leading to a significant stock decline.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100