$Faraday Future Intelligent Electric Inc.(FFIE)$ just announced that it has entered into an At-the-Market equity offering sales agreement under which the electric vehicle startup may, from time to time, offer and sell shares of its Class A common stock up to an aggregate value of $90.0 million. The news sent its shares tumbling more than 65% last week over the potential massive dilution. The company is now at a pivotal time as it focuses on ramping up its FF91 production and initial FF91 2.0 deliveries, while it struggles for survival amidst its financial distress. With deteriorating fundamentals and the stock overhang from impending massive dilution, it remains to be seen whether the company can be rescued by its FF91 and FF91 2.0. Meanwhile, I prefer to stay away from speculative play on the company's turnover in business.
On the other hand, I'm more optimistic with $Rivian Automotive, Inc.(RIVN)$ had a good run up close to 20% last week, as Tesla which owns roughly 17% stake in the electric vehicle maker, added its 5,000th Rivian van to its electric vehicle delivery truck fleet. Market sentiments have been improving lately amidst expectations over its Q3 deliveries as a near-term catalyst, as Rivian continues to realize cost benefits from an improving supply chain and the use of in-house components.
With the Chinese economy expected to rebound and as domestic demands for EV remain robust amidst tightening regulatory controls over emissions and growing awareness on climate change, I expect the Chinese EV trio
$XPeng Inc.(XPEV)$ , $NIO Inc.(NIO)$ and $Li Auto(LI)$ to fare well too. Following the heels of Volkswagen's investment into XPeng recently, Nio is reportedly exploring investment and tech alliances with Mercedes too. The unions of the incumbents with the EV startups are likely to drive the next phase of growth in the Chinese EV industry.
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Comments
Comparing a Tesla to a NIO is like comparing a flip phone to an iPhone 15. If Tesla wants to compete with NIO quality their EVs costs will go up like an Elon rocket
XPeng only needs one or more catalysts to catapult to new heights. Who said investing is rational? For a sustainable growth, XPeng needs to focus on innovation and the rest will take care of itself.
Rivian appears to be the more promising EV maker right now, given its production numbers and visibility to turn a positive gross profit in 2024.
Nio has got little momentum now. I think it will go back to 15 in no time. Just need to keep getting few more good news.
The difference between nio and xpev was xpev up 60% in this year while nio down -6% lol