Benzinga - by Shanthi Rexaline, Benzinga Editor.
Most electric vehicle stocks retreated along with the broader market in the week that ended on April 19, with company-specific developments also weighing down on stocks. It was a week to forget for Tesla, Inc. (NASDAQ:TSLA), as the stock settled at the lowest level since January 2023.
Here are the key events that happened in the EV space during the week:
Tesla Job Cuts, Estimate Re-Ratings And More: Tesla opted to right-size operations amid its fundamental travails. An email from CEO Elon Musk shared by media said the company let go 10% of its global workforce, amounting to about 14,000 employees. Musk justified the move by stating on X, “Every half decade or so, Tesla has to undergo a complete organizational overhaul to reach the next level.”
Notable among the eliminations were SVP of Powertrain and Energy Engineering Andrew Baglino and Vice President of Public Policy and Business Development Rohan Patel. An Information report said, with the eliminations, Musk has now a tight grip over the company, with at least 35 key personnel reporting directly to him. An organizational behavior professor at Stanford said this is “a recipe for CEO overload and being a bottleneck.”
The week also saw several sell-side analysts bringing down their price targets and estimates, just ahead of the first-quarter earnings date. Their main worry is that the company may confirm rumors that it has shifted focus away from producing sub-$30K electric vehicles to concentrate on refining full self-driving technology and robotaxi services.
To make matters worse, late Friday, the company announced $2,000 price reductions for all trims of its Model S,X and Y EVs. The electric vehicle manufacturer has continued its price-cutting strategy, though it hasn’t significantly boosted sales volume.
Musk also confirmed that he won’t be visiting India early next week, citing “very heavy Tesla obligations.” “But I do very much look forward to visiting later this year,” he said.
Rivian Announces More Job Cuts: Close on the heels of Tesla’s job cuts, Rivian Automotive, Inc. (NASDAQ:RIVN) reportedly cut 1% of its workforce amid the industry-wide slowdown. While Rivian's previous cut in February impacted product teams and those working on the company's commercial EVs, the latest round of workforce slashing will most likely impact its support and back-office workers, Bloomberg reported.
This week, Needham analyst Chris Pierce also lowered the price target for Rivian’s shares from $18 to $13, while maintaining a “Buy” rating. The reduction in the price target was to account for a tough EV demand environment even as the firm is optimistic about the long-term fundamentals for the company.
Canoo Initiated At Buy: Benchmark initiated coverage on Canoo, Inc. (NASDAQ:GOEV) with a “Buy” rating and a price target of $5 per share. Analysts at the firm premised their bullish recommendation on the company’s successful management overhaul and its targeted approach to the commercial fleet market.
Lucid Showcases 2024 Air Grand Touring: Premium EV maker Lucid Group, Inc. (NASDAQ:LCID) announced this week details about the 2024 Lucid Air Grand Touring, including an array of enhancements. The company said the vehicle has an EPA-estimated range of 516 miles, the longest range of any EV in the U.S. market currently. The 2024 Lucid Air Grand Touring has a starting price of $109,900.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Fisker Announces New Dealer Partnership: Beleaguered EV startup Fisker, Inc. (NYSE:FSR), which is teetering on the brink of bankruptcy, said it signed Fisker Miami as a dealer partner, its second in Florida after Fisker Jacksonville. The company announced a strategic shift to the “Dealer-Partnership” model in January 2024. Fisker also said it signed dealer partners in Hilleord, Denmark, and Innsbruck, Austria, bringing its European total to 12 dealer partners.
The KraneShares Electric Vehicles and Future Mobility Index ETF (NYSE:KARS) ended Friday’s session down 1.96% at $21.04, according to Benzinga Pro data. For the week, the ETF fell 2.46%.
Read Next: Management Expert Warns Elon Musk Faces ‘CEO Overload’ After Tesla Layoffs Reportedly Leave Him Overseeing 35 Key Personnel
EV Stock Performances For Week:
| Performances (+/-) | |
| Tesla | -14.03% |
| Nio, Inc.(NYSE:NIO) | -7.54% |
| XPeng, Inc. (NYSE:XPEV) | -7.11% |
| Li Auto, Inc. (NASDAQ:LI) | -10.24% |
| Fisker | +92.67% |
| Workhorse Group, Inc. (NASDAQ:WKHS) | +17.28% |
| Hyzon Motors, Inc. (NASDAQ:HYZN) | -7.39% |
| Canoo | +18.75% |
| Rivian | -5.48% |
| Lucid Group | -1.61% |
| Faraday Future Intelligent Electric, Inc. (NASDAQ:FFIE) | -26.23% |
| Nikola Corp. (NASDAQ:NKLA) | -8.01% |
| VinFast Auto Ltd. (NASDAQ:VFS) | -30.00% |
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.