Summary
- Tesla extended ‘zero-interest’ financing in China until the end of September, which raised concerns about margin erosion
- Tesla is planning to launch a seven-seat version of its Model Y SUV in Europe and China in October
- Rivian experienced a fire incident at its Normal, Illinois plant, damaging several EVs
- Lucid Group is working on more affordable EV models to rival Tesla’s offerings
- XPeng’s stock surged nearly 15% as it began delivering its new low-end electric vehicle model Mona M03 and potentially received 30,000 firm orders in the first 48 hours.
Article
The electric vehicle industry experienced volatility in the market surrounding Nvidia Corp.’s earnings report. Tesla, Inc. saw a decline in its stock price due to fundamental weaknesses. Despite this, Tesla extended its “zero-interest” financing in China until the end of September, causing concerns over margin erosion. The company is also set to launch a seven-seat version of its Model Y SUV in Europe and China in October. Additionally, Tesla is planning a robotaxi unveil event on October 10 at Warner Brothers’ movie studio in California.
Another notable event in the EV space was a fire incident at Rivian Automotive’s plant in Illinois, which damaged multiple EVs. The company is leading the investigation into the blaze, with support from town fire officials. Fortunately, the plant was unaffected, and there were no injuries. Additionally, Luxury EV maker Lucid Group is working on affordable models to rival Tesla’s offerings, including a sedan and crossover. Chinese EV startup XPeng saw a surge in its stock price after delivering its new low-end electric vehicle model, the Mona M03, at the Chengdu Auto Show.
BYD Co. Ltd., a Chinese EV startup backed by Warren Buffett, is aiming to generate nearly half of its sales from the overseas market in the future. Executive Vice President Stella Li mentioned in an interview that the company’s overseas market will account for a large proportion of global sales, with nearly half of sales made overseas. The company reported second-quarter earnings and revenue increases of 33% and 26%, respectively. The KraneShares Electric Vehicles and Future Mobility Index ETF ended the week with a modest increase of 0.79%.
Looking at the performance of various EV stocks for the week, Tesla experienced a 2.82% decline, while XPeng surged by 14.84%. Other notable changes included a drop in the stock price of companies like Nio, Li Auto, Workhorse, and Lucid, as well as a significant decline in the stock price of Faraday Future Intelligent Electric Inc. and Nikola Corp. Despite the market volatility, the electric vehicle industry continues to show growth and innovation, with companies like Tesla, Rivian, Lucid, XPeng, and BYD making significant strides in the market.
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