Electric vehicle (EV) stocks had a mixed performance this week, with some high-profile stocks rising while struggling startups posted declines. Tesla, Inc. (TSLA) saw a comeback, bouncing back from its lowest level in about nine months.
One of the key events in the EV space this week was Tesla’s sales performance in China. According to the China Passenger Car Association, Tesla sold 71,447 made-in-China EVs in January, marking a 24% month-over-month drop but an 8% year-over-year increase. Domestic sales were up about 48.5% year-over-year but declined over 47% from December. Additionally, Tesla upgraded the hardware for its Model Y EVs in China to the HW 4.0 version, improving the vehicle’s self-driving capabilities.
However, Tesla faced concerns among its workforce as it asked managers in the U.S. to categorize the roles of their team members as either critical or non-critical. This move came after the company cancelled some employees’ performance reviews and reported a double miss in its financial results.
Tesla’s plans for India also remained uncertain. The country’s Ministry of Heavy Industries clarified that it wasn’t considering a separate policy to accommodate Tesla’s request for incentives. Tesla has been seeking reduced import duties for its cars, but Indian authorities are firm on having the company localize manufacturing. Rumors suggest that Tesla might set up a manufacturing plant in Gujarat.
In other news, Rivian Automotive, Inc. (RIVN) announced two new battery pack options, the Standard and Standard+, which will reduce the starting prices of its R1T and R1S EVs by $3,100 each. Customers may also qualify for a federal tax credit of $3,750 on the purchase of vehicles with the newly introduced battery options.
Ford Motor Co. (F) revealed its plans to tap into the low end of the market with its EVs. CEO Jim Farley mentioned that the company developed a low-cost EV platform two years ago and is working hard to be on the low end of the price range.
Luxury department store chain Saks announced a partnership with Lucid Group, Inc. (LCID), offering exclusive demo drive experiences of the Lucid Air at select Saks Fifth Avenue store locations. This partnership aims to promote the Lucid Air and provide customers with a unique experience.
Nikola Corp. (NKLA) rejected a slate of five dissident nominees for election at its annual shareholders meeting. The nominees were proposed by an entity controlled by former chairman and founder Trevor Milton. The rejection was based on the grounds that the nominees lacked the necessary skills, experience, and expertise needed for the business.
Overall, EV stocks had a mixed performance this week, reflecting the evolving landscape of the industry. As the market continues to grow and new players enter the scene, it will be interesting to see how these stocks perform in the coming weeks and months.
