The S&P 500 index started the second half of 2024 with a 2% weekly gain to a record close, led by advances in the communication services, technology and consumer discretionary sectors.
Apple shares led the rally in the technology sector, climbing 7.5% following an Oppenheimer report from late last week that said the consumer technology company's move to incorporate artificial intelligence in the iPhone, iPad and Mac, is likely to add fuel to anticipated revenue and earnings growth.
In consumer discretionary, Tesla Motors shares jumped 27% this week after stronger-than-expected second-quarter deliveries, which Wedbush Securities said indicated the worst is over for the electric vehicle maker. Other Electric-vehicle shares also perform strongly. Li Auto rose 14% Weekly; Lucid rose over 12%; Nio rose about 11%.
Here are the key events that happened in the EV space during the week:
Tesla Knocks Off Lowered Number: After prolonged weakness, Tesla shares turned the corner, thanks to a second-quarter deliveries report that came in better than expectations. Analysts attributed the positive number to the lavish financing options facilitated by the company. Skeptics weren’t impressed as they pointed to the sharply lowered estimate ahead of the report and the year-over-year sales decline.
Tesla has moved past one of its key catalytic events unscathed, and all eyes are now focused on the second-quarter earnings report that is due on July 23.
Tesla continues to find favor with authorities in China. A CnEVPost report said multiple state-owned enterprises in Shanghai have purchased Model Ys as part of the city’s efforts to optimize the business environment and demonstrate equal treatment for domestic and foreign companies.
On the other hand, the company’s progress in China’s neighbor, India, hasn’t been encouraging. A Bloomberg report said Tesla executives have stopped contacting Indian officials regarding the company’s proposed expansion into India. Citing people familiar with the development, the report said officials in New Delhi were informed that Tesla has capital issues and that it wasn’t planning fresh investment in India in the near future.
Rivian’s Volkswagen Partnership Limited To Software: Irvine, California-based Rivian Automotive, Inc. told Reuters that the company does not plan to produce vehicles with Volkswagen AG. The clarification came after a German media report said the two would be extending their previously announced partnership beyond software to include EV manufacturing.
Separately, Rivian reported second-quarter deliveries that exceeded its pre-announced number. The company said it sold 13,790 EVs in the second quarter, ahead of the 13,000-13,300 units it forecast at its Investor Day held in June. The company manufactured 9,162 units and reaffirmed its 2024 guidance of 57,000 units.
Ford Reports Solid Q2 EV Sales: Legacy automaker Ford Motor Co. reported strong second-quarter EV sales, with its pureplay EV models recording double-digit growth. EV sales jumped 61% year-over-year as the Blue Oval toppled crosstown rival General Motors Corp. to be the second-largest U.S. EV maker.
F-150 Lightning sales climbed 77% to 7,902 units, Mustang Mach-E sales rose 46% to 12,645 units and E-Transit van deliveries surged up 96% to 3,410 units.
Nio Announces CFO Departure: Chinese EV startup Nio, Inc. its CFO Steven Feng has announced his decision to quit, effective July 5, citing personal and family reasons. The board approved the promotion of Senior Vice President of Finance Stanley Qu as Feng’s replacement. Feng’s resignation came close on the heels of the Shanghai-based company reporting robust deliveries for June.
Comments