The electric vehicle (EV) sector experienced a tumultuous week ending September 6th, reflecting the broader market volatility triggered by weak economic data. Even Tesla, the industry leader, saw its stock fall despite a mid-week recovery, succumbing to Friday’s jobs data-driven market sell-off. Here’s a breakdown of the key developments in the EV space during the week:
Tesla’s Full Self-Driving (FSD) Progress:
As Tesla’s core EV business faces challenges, the company and its investors are placing their hopes on the full-self driving technology. FSD is envisioned to generate a significant recurring revenue stream for Tesla. This week, the company announced anticipated timelines for launching FSD in its Cybertrucks and other regions. The rollout of FSD Supervised v12.5.2 with improved driving range is expected in September, along with features like Actually Smart Summon and Cybertruck Autopark. October will see the release of FSD v13 with enhanced parking capabilities. The FSD package is planned for release in China and Europe in the first quarter of 2025, subject to regulatory approval. Industry experts believe FSD could be a crucial differentiator for Tesla in the increasingly competitive Chinese market.Morgan Stanley analyst Adam Jonas, a Tesla bull, cautioned investors regarding the upcoming Robotaxi Day on October 10th. He expects a demonstration of the latest FSD iteration and a fully autonomous ‘cyber-cab,’ primarily in controlled environments. Jonas highlighted that Tesla lacks permits for autonomous vehicle testing or deployment without a driver.
Nio’s Strong Q2 Performance:
Chinese EV startup Nio reported impressive second-quarter results, exceeding revenue expectations and showing improved margins. The company also issued a positive delivery guidance for the third quarter. CEO William Li announced that the first mass-market vehicle from Nio’s stable, the Onvo 60, will launch in September, with monthly deliveries projected to surpass 20,000 units. The strong results propelled Nio’s stock up by over 24% for the week.Volvo’s EV Ambition Shift:
Swedish automaker Volvo Car AB, owned by Geely Automobile Holdings Limited, announced a revised strategy for its EV ambitions. The company now aims for 90-100% of its global sales to consist of electrified vehicles, encompassing both fully electric and plug-in hybrid models, by 2030. This represents a departure from its previous goal of a fully electric lineup by 2030. The decision comes amidst challenging market conditions, echoing similar adjustments by U.S. legacy automakers General Motors and Ford, who have also scaled back their EV targets.Faraday Future Secures Funding:
Struggling EV startup Faraday Future Intelligent Electric Inc. confirmed securing $30 million in funding commitments from investors in the Middle East, U.S., and Asia. This includes previously funded $7.5 million and $22.5 million in new investment. Additionally, Faraday Future regained compliance with Nasdaq listing requirements.Hyzon’s Reverse Stock Split:
Hydrogen fuel-cell energy company Hyzon Motors announced a 1-for-50 reverse stock split, effective September 11th. The move is intended to increase the share price, enabling Hyzon to comply with Nasdaq’s minimum bid price requirement for continued listing.The week’s performance of the KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) reflected the overall market sentiment, ending Friday down 3.83% at $18.55. The ETF witnessed a 2.78% decline for the week. The EV sector’s performance highlights the evolving landscape of the industry, with companies navigating market volatility, regulatory hurdles, and consumer demand shifts. The coming weeks will likely see further developments as companies strive to secure their position in the growing EV market.
