Electric vehicle stocks moved down alongside the broader market in the week ending April 21. Tesla, Inc. TSLA set the ball rolling with mixed quarterly results.
Here are the key events that happened in the EV space during the week:
Tesla’s Q1, Price Adjustments And More: Tesla reported first-quarter revenue that rose at the slowest pace since the second quarter of 2020, when revenue fell year over year. Earnings per share tumbled 20.6% but still aligned with estimates. The drop was due to concerns over Tesla’s profit gross margin, which fell below 20%. CEO Elon Musk, however, said on an earnings call that Tesla could sell its cars at no profit in the short term and make up for it in the long term with its full self-driving software.
The EV giant made two contrasting price moves this week. While cutting the prices of the Model Y and Model 3, the company raised prices of its Model S and X vehicles.
Cathie Wood’s Ark Invest announced a new price target for Tesla stock, which the firm expects to climb to $2,000 by 2027 with much of that jump attributed to the rollout of robotaxis.
Rivian EVs Get Partial EV Tax Credit: Rivian Automotive, Inc.’s RIVN 2023 R1T and R1S vehicles, which were initially left out of the Internal Revenue Service’s list of vehicles that qualify for a tax credit based on updated guidelines, will receive a $3,750 credit. The about-face came after the company submitted revised documentation regarding its battery criterion.
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Similarly, Volkswagen AG’s VWAGY 2023 ID.4 EVs built in Chattanooga, Tennessee, and placed in service this year will be eligible for a $7,500 federal tax credit, the German automaker said.
Lordstown Resumes Endurance Production, Deliveries: Struggling EV maker Lordstown Motors Corp. RIDE announced this week that production and deliveries of its Endurance pickup truck, which had been paused earlier this year, resumed in April. The company also announced an agreement with Amerit Fleet Solutions to provide service and maintenance to Lordstown’s commercial fleet customers.
Separately, Lordstown said on Thursday that it had received a delisting notice from Nasdaq and that it is evaluating possible actions, including a reverse stock split to meet the minimum bid price requirement.
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Toyota Renewed EV Focus: Japanese auto giant Toyota Motor Co.’s TM outlined a three-step strategy that will boost productivity and profitability through 2030 via the company’s lineup of EVs, Automotive News reported.
At a media roundtable, new CEO Koji Sato said that Toyota is now in the first stage of its plan and will move into the second stage, which includes the introduction of a completely new EV platform and the sale of about 1.5 million EVs, around 2026. The company will enter the third stage once it leverages a new vehicle software system to unlock new revenue streams, business models and hyper-efficient product development cycles.
Fisker Wins Design Award: Although Fisker, Inc.’s FSR Ocean SUV hasn’t been rolled out yet, it won the prestigious Red Dot Design Award for Best Electric Vehicle.
EV Stock Performances for The Week: