Rivian's earnings report and upcoming launch of its low-cost electric-vehicle platform take center stage this week
The electric vehicle (EV) market experienced mixed performance last week, with some stocks seeing gains and others pulling back amid stock market volatility. Tesla, however, continued its upward trajectory for the third consecutive week. One company to watch closely this week is Rivian Automotive, as it prepares to release its earnings report and unveil its next-generation, low-cost electric-vehicle platform.
Tesla made headlines by adjusting its prices once again, this time raising the prices of its Model 3 variant by $500. Additionally, the company lowered the price of its existing Model Y Long Range inventory vehicle, making it roughly $1,000 cheaper than the custom-made Model 3 Long Range. These pricing adjustments come as Tesla seeks to maintain its competitive edge in the EV market.
Stellantis, the multinational automotive manufacturer, announced its plans to adopt Tesla's North American Charging Standard for select battery electric vehicles in North America starting in 2025. In the meantime, adapters will be provided to allow vehicles with the combined charging system port to utilize Tesla's supercharger network. This strategic move by Stellantis underscores the growing importance of charging infrastructure in the EV industry.
In Sweden, the labor union IF Metall made a temporary relaxation of its strike against Tesla. This will allow certain workshops to repair critically damaged Tesla vehicles from February 19 to April 30. The labor dispute had previously caused disruptions and delays in Tesla's service operations in the country.
Another significant development in the EV space is Rivian's announcement of the global launch of its next-generation, low-cost electric-vehicle platform. Codenamed R2, this platform is set to be unveiled next month, and it has generated a lot of anticipation within the industry. Rivian, which recently went public, has been gaining attention for its innovative approach to electric vehicles.
Meanwhile, Lucid Group, a luxury electric vehicle manufacturer, announced price cuts for most of its variants and offered customers a $1,000 credit for charging equipment. This move aims to make Lucid vehicles more accessible to a wider range of consumers. The base rear-wheel-drive Air Pure variant now starts at $71,400, making it more competitive in the market. Additionally, the CEO of Lucid Group, Peter Rawlinson, was approved a $6 million cash bonus for the launch of the company's upcoming Lucid Gravity SUV.
GM and Ford, traditional automakers, are expressing openness to partnerships in order to counter the threat from Chinese rivals in overseas markets. This signals a recognition of the growing influence and competitiveness of Chinese EV manufacturers in the global automotive industry.
Fisker, an American electric vehicle manufacturer, announced the addition of four dealer partners in the U.S., as it moves forward with its Dealer Partnership model. This expansion aims to strengthen Fisker's presence in the market and increase its accessibility to customers.
Investors will be keeping a close eye on the performance of EV stocks this week. The KraneShares Electric Vehicles and Future Mobility Index ETF concluded last week with a gain of 2.07%, closing at $22.15. The ETF added 3.36% for the week, reflecting the overall positive sentiment towards the EV industry.
Here is a summary of some EV stock performances for the week:
- Tesla: +3.30%
- Nio: +3.54%
- XPeng: +12.13%
- Li Auto: +3.03%
- Fisker: -6.69%
- Workhorse Group: +19.23%
- Hyzon Motors: -3.72%
- Canoo: -9.10%
- Rivian: -2.28%
- Lucid: +5.40%
- Faraday Future Intelligent Electric: +5.88%
- Nikola: +2.76%
- VinFast Auto: +4.0%
As the EV industry continues to evolve, these earnings reports and developments will provide valuable insights into the direction of the market and the future of electric vehicles.
Analyst comment
Neutral news. The upcoming week will feature earnings reports from startups like Rivian, which may impact the market. Electric vehicle stocks had mixed performance last week. Tesla advanced, while Rivian pulled back. Key events included price adjustments, adoption of Tesla’s charging standard, labor strike relaxation, and announcements from other EV companies. The KraneShares Electric Vehicles and Future Mobility Index ETF ended the week up. The market is expected to continue experiencing volatility and potential shifts based on upcoming earnings reports and industry developments.
