Is EV Winter Over?
๐๐๐This has been a great week for several EV stocks as some of them reported better than expected Q2 24 vehicle deliveries.
Top of the list is $Tesla Motors(TSLA)$
Tesla shares dropped 8% on Thursday after Bloomberg reported that Tesla will delay the unveiling of its Robotaxi by 2 months.
However macro economics saved the day as it is reported that June's inflation data came in cooler than expected. CPI inflation has slowed down from 3.3% in May 2024 to 3% in June 2024. This has sparked off a rally in small cap stocks as well as the EV sector.
Tesla has recovered and rose by almost 3% on Friday.
$Rivian Automotive, Inc.(RIVN)$
Rivian's main catalyst was the partnership with Volkswagen and the injection of up to USD 5 billion in Rivian recently.
Wall Street Analysts are bullish on Rivian with an average price target of USD 15.20, an upside potential of 87%!
$XPeng Inc.(XPEV)$
XPeng has announced that it will be showcasing the G6 at the Goodwood Festival of Speed 2024 in the United Kingdom. Model G6 is a competitor to Tesla's Model Y. XPeng's move comes as it continues its European expansion in Denmark, Norway, the Netherlands and Sweden last year.
Wall Street Analysts are bullish on XPeng with a Target Price USD 16.79, an upside potential of 100%.
$NIO Inc.(NIO)$
Nio has unveiled its first in house developed Autonomous Driving Chip called Shenji BX9031 which is built on a 5 mm processor. Its computing power is comparable to 4 Nvidia Drive Orin X chips.
The Shenji chip will be used in ET9 which is available for pre order and scheduled for deliveries in Q1 2025.
Wall Street Analysts are bullish on NIO with a Buy rating, Target price of USD 6.19, an upside potential of 52%.
Surprisingly $Faraday Future Intelligent Electric Inc.(FFIE)$
Faraday Future has just announced that it will host an investor community day at its global headquarters in Los Angeles on July 20. Investors are invited to experience and learn more about the FF 91 2.0 EV and meet with senior management.
Faraday Future also plans to hold the Annual Meeting of stock holders on July 31 2024. Investors are urged to vote for all proposals. This will include the proposed reverse stock split of between 1 for 2 and 1 for 40 shares. It is Faraday Future's intention to regain compliance with Nasdaq's listing rules of minimum USD 1 per share for 10 consecutive days.
Faraday Future has received a reprieve from Nasdaq for continued listing subject to Faraday Future's compliance with the periodic reporting requirement by July 31 2024 and the minimum bid price requirement by August 31 2024.
Faraday Future has closed at 42 cents on Friday and is in talks with some Middle East companies to secure further funding.
Faraday Future may not have much of a future if it does not comply with Nasdaq's compliance requirements by the deadline. So time is of essence to get shareholders approval for the reverse stock split.
EV companies are facing intensive competition. Even Tesla, the current strongest company is not spared. Ultimately the most innovative and efficient EV companies will survive and triumph over its competitors. I believe that Tesla is in a dominant position to do so even though it may face challenges along the way.
With the imminent expectations that the Feds may cut interest rate as early as September, I believe that the EV Winter will soon be replaced by an EV Spring as lower interest rates is great news for growth stocks like Tesla.
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Well the policy of the government is another big factor
Unfortunately TSLA doesnโt maintain.
Based on the news articles and reports, here are some key points regarding the current state of the EV sector:
Tesla (TSLA): Tesla's share price experienced a pullback after news of a delay in the unveiling of its Robotaxi event. However, Tesla shares recovered and rose by almost 3% on Friday. The company remains a dominant player in the EV market.
Rivian Automotive, Inc. (RIVN): Rivian had a great week, with its share price up by 8% on Friday and a jump of 21% in just 5 days. The partnership with Volkswagen and the injection of up to USD 5 billion in Rivian have been catalysts for its recent success. Wall Street analysts are bullish on Rivian, with an average price target of USD 15.20, indicating an upside potential of 87%.
XPeng Inc. (XPEV): XPeng's share price has been on an upward trend for 10 consecutive days. The company is reportedly planning to launch at least four EV models in 2025, including new models and facelifts.
Faraday Future: Faraday Future received a reprieve from Nasdaq for continued listing, subject to compliance with reporting and bid price requirements. The company is in talks with Middle East companies for further funding. However, compliance with Nasdaq's requirements by the deadline is crucial for its future.
Overall, the EV sector has seen positive momentum recently, with EV stocks experiencing gains. However, it is important to note that EV companies are facing intensive competition, and challenges exist even for strong companies like Tesla. The most innovative and efficient EV companies are expected to survive and thrive in the long run.
Please note that the information provided is based on the news articles and reports available. It is important to conduct thorough research and analysis before making any investment decisions.
Source 1: Is EV Winter Over?
Source 2: Xpeng reportedly to launch at least 4 EVs in 2025, including new models and facelifts
Source 3: Why Chinese EV Makers Are Poised to Become Industry Giants
Source 4: EV Shares Slid in Premarket Trading, With Tesla Falling 1.5%
Source 5: Will stocks of the EV makers drive to highway next week?
Source 6: EV Shares Gained; Lucid Rises 16%; Rivian Jumps 6%
Note: The provided information is for reference purposes only and does not constitute investment advice.