Tesla, Inc. TSLA led a rally in electric vehicle stocks for the week ended Jan. 27 as gains exceeded gains and better-than-feared forward comment encouraged traders to revisit the industry’s battered stocks. Here are the main events that took place in the EV space during the week:
Tesla’s Q4, Outlook Strengthens Stock Rally: Tesla stock plunged 65% in 2022 Elon Musk-led company announced a series of steep price cuts across all regions, the stock began to turn around. The rally picked up steam after the company beat both earnings and revenue expectations and Musk provided upbeat comment.
The billionaire hinted at an internal delivery target of 2 million units, despite the company’s formal guidance calling for sales of 1.8 million units. The company also confirmed the production launch schedule for the much-anticipated Cybertruck. Auto margin, although forecast to shrink, was better than what the Street had modeled.
The sum total of all the positive news led to a stellar two-day run for the stock following Wednesday’s earnings release, pushing year-to-date gains to 44%.
Lucid could end up in the pocket of a Saudi financier: After cutting production forecasts and reporting a drop in reservations last year, there are doubts Lucid Group, Inc Increased LCID ability to run effectively. Those fears were priced in by the stock, which ended 2022 down 82%. Even as larger rival Tesla began to stage a rebound in 2023, Lucid’s stock remained flat.
Rumors of the Saudi Public Investment Fund, which owns about 65% stake in Lucid, buying the remaining stake it doesn’t own and privatizing the EV maker sent its shares up almost 100% on the day on Friday. After giving back some of the gains, the stock ended the day up 43% at $12.87.
See Also: The Best Electric Vehicle Stocks
Toyota’s leadership change raises hopes for faster EV transition: Toyota Motor Corporation TM CEO Akio Toyoda, the founder’s grandson, announced plans to step down from this position later this year. The top of the range of the company’s Lexus luxury subsidiary, koji sato, takes over the management.
The changing of the guard fuels hopes that the world’s largest automaker by volume could accelerate its transition to electric vehicles, as Toyoda has taken a measured approach and has often been criticized for being slow on the front.
Rivian loses another executive: Rivian Automotive, Inc. RIVN, which recently faced some key executive departures, has lost another C-suite executive. Jim Chen, The company’s main lobbyist, who has been urging it to bypass distributors and sell direct to customers, will go by February by mutual consent.
Canoo Going Places: Lifestyle electric vehicle maker cash-strapped Canoo, Inc. GOEV announced that it has signed an agreement with GCC Olayan for the sale, service and distribution of Canoo fleet solutions in Saudi Arabia.
Lightyear offers Premium EV: Solar-powered electric vehicle maker Lightyear said it is suspending production of its flagship Lightyear 0, a premium electric vehicle priced at €250,000 ($271,813), Electrek reported. Instead, the company reportedly plans to focus on an affordable model priced at €40,000.
Continue reading: Tesla stock outperforms EV industry ETF, rivals since Jan 13 US price cuts: What investors should know
EV stock performance for the week:
Photo via Shutterstock