Tesla’s Event-Packed Shareholders’ Meeting, Toyota in Damage Control Mode, Lucid Fails, Romeo Finds a Suitor and More: The Week’s Biggest EV Stories
Most EV stocks ended the week ending Aug. 5 higher, except for the industry giant Tesla, Inc. TSLA and a handful of other companies. Shares were mainly reacting to the earnings news stream, tax credit proposals that are being discussed as part of a broader bill and the M&A news stream.
Here are the key events that happened in the EV space during the week:
Tesla shareholders’ meeting: Tesla hosted its annual shareholder meeting this week at its Giga Austin factory, which was held as a hybrid event. As expected, shareholders approved the stock split at a ratio of 3:1. The company later confirmed that the split would be implemented in the form of a stock dividend, payable on August 24, to shareholders of record on August 17.
And there was no revolt, with shareholders mostly voting in line with company recommendations.
Tesla CEO Elon Musk introduced himself and shared his thoughts and predictions on a host of topics, from the company’s product roadmap to inflation and recession. He continues to point out that the United States will suffer a shallow but prolonged recession that could last 18 months.
He suggested that the company’s fully standalone software would be available by the end of the year to anyone who requests it in North America. Tesla’s production capacity will increase to 2 million units by the end of 2022, he added. He also hinted at the start of production of the highly anticipated Cybertruck by the end of 2023. Volume production of the 4680 battery will likely begin by the end of 2022, he added.
Separately, Tesla this week began deliveries of its Model Y SUV in Australia and New Zealand.
Related Link: Do Institutional Investors Like Tesla? Gary Black speaks
Toyota will buy bZ4X electric vehicles: Japanese car giant Toyota Motor Corporation MT is taking action to please aggrieved customers affected by the June recall of its bZ4X electric vehicles due to the likelihood of falling wheels. The company’s US unit would repurchase the affected SUV, with terms of purchase depending on the state of the buyer and specific circumstances.
Romeo in the M&A mix: Romeo Power, Inc. RMO shares were on a tear after the embattled battery maker announced a deal to be bought by a maker of heavy and commercial electric vehicles Nikola Company NKLA for 74 cents per share in stock. The penny stock rallied strongly to end the week up more than 60%.
Earnings lower Lucid: Manufacturer of luxury electric vehicles LucidGroup, Inc. LCID, which was once touted as the “next Tesla,” failed in the second quarter, shipping just 679 vehicles in the quarter and producing about 1,400 vehicles in the first half. More importantly, the company has halved its forecast for 2022. It now expects to produce 6,000 to 7,000 vehicles, down from the 12,000 to 14,000 units it previously envisioned. The company blamed it on “extraordinary supply chain and logistics challenges”.
Fisker boasts strong reservations: Fisker, Inc. FSR investors breathed a sigh of relief as the company stuck to its schedule for the start of production of its Ocean One SUV. Production will begin as planned on November 18, the company confirmed. The company also said the number of reservations was supported at 56,000 units.
Related Link: Tesla Dominance Put to the Test: How EV Upstarts Lucid, Rivian, Fisker Stack Up in Q2 Results
Lordstown is on schedule for production: Lordstown Motors Corp. STROLL reported its first-ever second-quarter operating profit despite a lack of revenue. The company benefited from gains on the sale of its Ohio plant to a Taiwanese partner and subcontractor Hon Hai Precision Manufacturing Co.Ltd. HNHPF. The company has confirmed that it will begin production of its Endurance pickup truck in the third quarter and begin deliveries by the end of the year.
Electric vehicle tax credit deal could go through the Senate: The Joe Biden The administration’s ambitious climate and energy tax bill could pass the Senate as soon as Sunday after Sen. Kirsten Sinema (D-AZ), who was holding firm, agreed to vote for the proposals, with some modifications. Clean energy proposals are part of the bill.
EV stock performance for the week: