The EV space was broadly lower in the week ending May 13, although closing off their lows. The industry took cues from the broader market, which went through a steep sell-off early in the week before recovering on Friday. Market leader Tesla, Inc. (NASDAQ:TSLA) had another down week, while stock-specific catalysts triggered some wild swings in a few other stocks.
Here are the key events that happened in the EV space during the week:
Tesla China Sales Plunge: Tesla reported sales of 1,512 vehicles in China in April, a month when it had to shut down its Giga Shanghai plant for about three weeks. This marked a 98% drop from March. Production at the plant slumped 81% to 10,757 vehicles.
Chief executive officer, Elon Musk, shrugged it off and suggested that things should be up and running in the coming weeks. He made the remarks while speaking at the Financial Times “Future of Car” conference. Musk also refuted rumors that a second plant is in the works in Shanghai and confirmed that the existing plant will see capacity expansion.
Meanwhile, reports suggested that Tesla could be facing production disruption at its Giga Shanghai yet again.
After vigorously following up with the Indian government and putting preliminary infrastructure and personnel in place, Tesla seems to have lost patience. The company has reportedly asked the key people in India to focus their efforts in Dubai and the Middle East. The move apparently is precipitated by the Indian government’s intransigent stance on cutbacks in import subsidies that would make Tesla’s cars affordable to Indian customers.
Tesla, meanwhile, got an invite from Malaysia to set up a manufacturing plant, local media reported.
Lordstown Closes Ohio Factory Sale: Lordstown Motors Corp. (NASDAQ:RIDE) shares got a nice lift this week after the company announced the closing of the deal to sell its Ohio manufacturing plant to partner Hon Hai Precision Industry, Co., Limited (OTC:HNHPF). The latter, which is investing $55 million in a joint venture with the former, plans to use the plant as its manufacturing hub in the U.S. Meanwhile, Foxconn will also take over the manufacturing of Lordstown’s Endurance pickup truck.
Related Link: Volkswagen Seeks To Pull A Ford With EV Focused Company In US Amid Tight Race With Tesla: Report
Rivian Wilts On Lockup Expiration: Shares of Rivian came under significant selling pressure amid stock sale by insiders following lockup expiration. Ford Motor Company (NYSE:F) substantially offloaded its position in Rivian, the legacy automakers said in two filings during the week. Separately, Rivian announced a narrower-than-expected loss for the first quarter and kept its production guidance for the year.
Canoo Warns Of Cash Crunch: Canoo Inc. (NASDAQ:GOEV) said in its first-quarter earnings release there is “substantial doubt” about its ability as a going concern. The warning comes ahead of the planned production start of its EVs.
The company is also locked in a legal tussle with its second-biggest shareholder having strong China links. Canoo has accused the shareholder of illegally profiting out of stock sales.
Nio Has A Date For Singapore Listing: Beleaguered Chinese EV maker Nio, Inc. (NYSE:NIO) announced that it expects to list its shares on the Singapore stock exchange on May 20. Separately, the company announced a $1,470 price hike for its ET7 sedan for those customers ordering after May 23.
Volkswagen Plots U.S. Dominance With Scout Brand: Volkswagen AG (OTC:VWAGY) is reportedly planning to set up a dedicated EV company in the U.S. to produce Scout branded vehicles. The Scout name takes after International Harvester’s iconic Scout off-road vehicle that was produced between 1961 and 1980. The unit will produce an EV pickup truck and an off-roading SUV by 2026.
EV Stock Performances for The Week:
Related Link: Nio Surges As Singapore Listing Announced For May 20: What Investors Should Know