Bearish Sentiment Engulfs Tesla, Rivian Stock Craters Over Production Problems, Ford Halts F-150 Electric Delivery And More: Biggest EV Stories of the Week – KraneShares Electric Vehicles and Future Mobility Index ETF (ARCA:KARS)

Bearish Sentiment Engulfs Tesla, Rivian Stock Craters Over Production Problems, Ford Halts F-150 Electric Delivery And More: Biggest EV Stories of the Week – KraneShares Electric Vehicles and Future Mobility Index ETF (ARCA:KARS)

Bad news from the start of the electric car Rivian Automotive, Inc. RIVN and Lucid Group, Inc. LCID keep the EV space dark this week. The weakness came despite the broader market ending the week at a record high.

Here are the key events that happened in the EV space during the week:

Tesla Bearish Sentiment Rises, Price Reversal: Tesla, Inc. TSLA shares have been languishing in depressed levels since the company reported double-digit misses in the third quarter of 2023. The fundamentals of Elon Musk-The leading company has slowed down due to bad economic conditions, reduced EV usage and some of its own strategies.

Morgan Stanley analyst Adam Jonas said in a report released this week that, of the 84 investors responding to the company’s investor survey, three-quarters believe the stock has not yet declined. Investors were particularly concerned about the declining demand narrative for EVs.

Tesla continued to raise the price of the Model 3 Long Range SUV in the US by $250, with the variant now starting at $47,740. Pricing for the base rear-wheel drive variant remains unchanged at $38,990. The company also raised the price of the white interior Model 3 by $500. Commenting on the price change, Troy Teslike, a social media user known for predicting Tesla’s deliveries, said the company could discourage customers from ordering a version of the Model 3 that cannot deliver and push up sales of the Model Y, which is seeing bloated inventory levels. .

Rivian, Lucid, Nikola Income Disappointment: Earnings season wasn’t great for startups either, with Lucid, Rivian and Nikola Company NKLA both reporting disappointing quarterly performances.

Rivian beat revenue expectations but missed production targets, as it guided for 57,000 units in 2024, well below analysts’ estimates, CNBC reported. Despite working on its new R2 platform, the company also announced a 10% reduction in staff.

Lucid missed revenue expectations and issued weak guidance for 2024 deliveries of 9,000 units, reflecting production challenges. Struggling truck maker Nikola also reported below-consensus revenue as the company delivered just 20 EV battery trucks despite delivering 133 units.

Looking ahead, Nikola said it expects to deliver between 250 and 350 BEV trucks and 125 to 150 of its upcoming fuel cell trucks in 2024.

See Also: Best Electric Car Storage

Ford Stops F-150 Shipments: After slowing production of its F-150 electric pickup trucks, Ford Motor Company F has halted shipments of its 2024 model year truck, citing a longer-than-expected quality inspection process, Detroit News. information.

A Ford spokeswoman said the suspension of shipments went into effect on February 9 and that production of the EV continued at the Rouge Electric Vehicle Facility in Dearborn.

Nio Tests Use of Humanoid Robot for Factory Line: China’s EV startup Nio, Inc. NIO seems to achieve production efficiency. CnEVPost report say a Shanghai company is testing the use of humanoid robots in its assembly lines at one of its factories. The report said the Hong Kong-listed humanoid robot manufacturer UBTech Robots recently shared a video on Weibo showing its Walker S robot working on Nio’s assembly line.

See more information on Benzinga’s Future of Mobility and follow this link.

Volvo Cuts Polestar Stock: of Sweden Volvo Car AB (publ.) VLVOFowned by China Geely Automobile Holdings Limited LIFEHe said his board has decided to divest 62.7% of its shares in the loss-making EV manufacturing. Polestar Automotive Holding UK PLC PSNY to its shareholders, subject to shareholder approval at its annual general meeting in 2024. The proposed move will reduce its stake in Polestar to 18%.

“After the divestiture, Geely Holding will continue to provide operational and financial support to Polestar going forward. The divestiture will enable Volvo Cars to focus its resources on the next phase of the transformation of Volvo Cars, and therefore Volvo Cars will not provide further financing to Polestar,” Volvo Cars said.

The KraneShares Electric Vehicles and Future Mobility Index ETF KARS ended Friday’s session down 0.05% at $21.64, according to Benzinga Pro data. For the week, the ETF fell by 2.30%.

Read Next: Tesla Investor Shows Love to Beaten Rivian: 4 Reasons Why He’s Positive About the EV Maker

EV Stock Performance For The Week:

Performance (+/-)
Tesla -3.99%
Yes -12.05%
XPeng, Inc. XPEV -9.35%%
Li Auto, Inc. LI +9.99%%
Fisker, Inc. FSR -19.13%
Workhorse Group, Inc. WKHS -2.45%
Hyzon Motors, Inc. HYZN -12.56%
Canoo, Inc. GOEV -17.89%
Rivian -38.22%
Lucid -18.60%
Faraday Future Intelligent Electric, Inc. FIE -8.22%
Nicholas +3.30%
VinFast Auto Ltd. VFS -7.33%

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