Latest News on Tesla and Rivian

Shares in the US dropped today as investors are worried about geopolitical tensions in the Middle East, disappointing bank earnings, and the prospect of the Feds keeping interest rates higher for longer. 

Last Monday, Tesla shares rose 4.9% on news that CEO Elon Musk promises a robotaxi reveal on August 8.    The difficulty in releasing an Autonomous Taxi as the Robotaxi is meant to be, is the self driving aspect.  While Tesla has made great strides with FSD v12, it is still a level 2 system that requires active driver supervision.   Some analysts say that Full Self driving technology is still years away from realisation.   So this maybe a setup for more disappointments for investors.  It remains unclear whether Tesla is going ahead with Model 2, a low cost EV  in 2024.

In other news, Tesla has regained the global battery electric vehicle crown over BYD in Q1 24 after being overtaken by the latter for the first time ever in Q3 23, although its numbers have fallen. 

Tesla delivered 386,810 vehicles globally in Q1 24, down 8.5% year on year, another drop of 20.1% from Q1 23.

The latest news is that Tesla is cutting more than 10% of its global workforce  as sales have dropped due to intense competition and slowing global economy.   2 senior executives Drew Baglino, Battery Development Chief and Rohan Patel, Vice President for Public Policy also announced their departures. 

Tesla's share price is  down 5.5% today  and has dropped 6.6% in the past 5 days.  It is now down 35% year todate.  In 2023 it has dropped 13.6%.

Wall Street Analysts are still bullish on Tesla with a Buy rating, Target price of USD 196.72, an upside potential of 21%.

$Rivian Automotive, Inc.(RIVN)$  is continuing its downward momentum and closed 8% down.  In the past 5 days it has dropped 19.6%.

Last week Ford Motors cut its prices of some F-150 Lightning models by as much as USD 5,500 as reported by CarsDirect.com.   General Motors will begin selling its new Silverado EV electric pickup truck in competition with Ford's F-150 Lightning this week.  

So it is not surprising that investors are worried as the competition for electric pick up trucks becomes more intense.  Rivian's R1T electric truck's starting price is higher than Ford 's F-150 and with more competition from General Motors, Rivian may have to cut price in order to compete. 

Rivian has now dropped to its all time low of USD 8.32 which is well below its 52 week high price of USD 28.06.

Wall Street Analysts are still bullish on Rivian with a average Target price of USD 16.91, an upside potential of 100% according to Tipranks. 

The current market sentiments are Bearish with $Cboe Volatility Index(VIX)$   hitting 6 year high according to data by Cboe Global Markets.  VIX is also known as Wall Street "Fear Gauge".   The US markets closed down today with $SPDR S&P 500 ETF Trust(SPY)$  dropping by 1.2% while $Invesco QQQ Trust(QQQ)$  is also down by 1.6%.  

Even though I am short term Bearish on Tesla and Rivian, I am long term Bullish  as there is exponential growth ahead as the world transitions to a cleaner and greener Earth. 

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