EV shares slid in morning trading.
XPeng fell over 7%; Nio, Li Auto fell over 5%; Rivian fell over 3%; Tesla, VinFast, Nikola fell over 2%.
U.S. prosecutors are examining whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities.
Tesla’s Autopilot and Full Self-Driving systems assist with steering, braking and lane changes - but are not fully autonomous. While Tesla has warned drivers to stay ready to take over driving, the Justice Department is examining other statements by Tesla and Chief Executive Elon Musk suggesting its cars can drive themselves.
U.S. regulators have separately investigated hundreds of crashes, including fatal ones, that have occurred in Teslas with Autopilot engaged, resulting in a mass recall by the automaker.
Rivian Automotive Inc. posted mixed quarterly results, reporting a wider-than-expected loss but revenue above Wall Street's expectations.
Tuesday's results "set a strong foundation to the remainder of the year," Chief Executive RJ Scaringe said on a call after the results.
Rivian executives also reaffirmed the company's production guidance for the year, announced pared capital expenditures and reiterated that they expect to reach positive gross profit in the fourth quarter.
Rivian $(RIVN)$ lost $1.45 billion, or $1.48 a share, in the first quarter, compared with a loss of $1.35 billion, or $1.45 a share, in the year-ago quarter.
Adjusted for one-time items, Rivian lost $1.24 a share. That compares with FactSet consensus of an adjusted loss of $1.15 a share.
Revenue rose to $1.2 billion, from $661 million a year ago, mostly as the EV maker delivered 13,588 vehicles in the quarter. Revenue from the sale of regulatory credits were minimal, the company said.
