Summary
- Electric-vehicle stocks, including Tesla, finished higher for the week with positive sentiment towards Chinese startups
- Tesla’s strength in China continued, with strong registration numbers and extended financing program
- Analysts expect Tesla to beat delivery forecasts in the third quarter, primarily due to China’s strength
- Rivian received a downgrade from Morgan Stanley due to increased capital intensity for autonomous driving systems
- Nio began deliveries of its first low-end EV, while GM partnered with CATL to launch the fastest-charging EV battery, leading to a rise in the EV ETF KARS.
Article
The week of September 27 saw electric-vehicle stocks mostly higher, driven by Tesla and Chinese startups benefiting from China’s stimulus measures. Tesla’s quarterly deliveries were up in China, helped by a financing program for local models. Analysts are optimistic about a third-quarter delivery beat, fueled by the strength in China. Rivian, however, saw a downgrade from Morgan Stanley, citing concerns about the capital intensity of autonomous vehicle technology. Canoo announced its launch in the UK and the start of deliveries of its low-end EV, while Nio began deliveries of its ONVO L60 model and GM collaborated on a fast-charging EV battery.
Tesla’s strength in China continued with high delivery numbers despite a national holiday. Analysts are predicting a strong third-quarter delivery beat, thanks to the performance in China offsetting challenges in Europe. Rivian faced a downgrade due to concerns about the costs associated with autonomous vehicle technology, despite its partnership with Volkswagen. Canoo announced a launch in the UK, but faced challenges with the departure of a key executive and lawsuits from suppliers. Nio started deliveries of its low-end EV model, with more options expected in the coming months.
Investors are closely watching Tesla’s performance in China, with positive sentiment driving the stock up. Rivian faced challenges with a downgrade due to concerns about the cost of technology needed for autonomous vehicles. Canoo made a move into the UK market, but faced internal challenges with executive departures and lawsuits. Nio began deliveries of its low-end EV model and GM collaborated on a fast-charging EV battery. The electric-vehicle space continues to see volatility and competition, with companies facing various challenges and opportunities.
Overall, the electric-vehicle market saw positive movement during the week in question, with Tesla and Chinese startups leading the charge. Tesla’s China performance was strong, boosted by an extended financing program for local models. Rivian faced a downgrade due to concerns about capital intensity related to autonomous vehicle technology. Canoo announced its entry into the UK market, while Nio started deliveries of its low-end EV model. GM collaborated on a fast-charging EV battery, showcasing ongoing innovation and competition in the industry.
The electric-vehicle market continues to be a dynamic space, with companies navigating various challenges and opportunities to establish themselves. Tesla remains a dominant force, particularly in China, while startups like Rivian, Canoo, and Nio face their own set of hurdles. The industry as a whole is undergoing rapid transformation, with new technologies and partnerships driving innovation and growth. Investors are closely monitoring developments in the EV space, especially as companies jockey for market share and seek to establish themselves as leaders in the emerging industry of electric vehicles.
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