The week ending August 23 saw a mixed bag of news for electric vehicle (EV) stocks. While many rose in tandem with the broader market, fueled by anticipation of an imminent Federal Reserve rate cut, company-specific developments weighed down others.
Tesla Faces Challenges in Europe
Tesla, the EV giant, experienced some setbacks in Europe. The European Union announced it would reduce import duties on Tesla EVs made in China from 20.8% to 9%, a decision also benefiting other Chinese manufacturers. This move came despite Tesla losing its leading position in the European BEV market to BMW in July. Adding to Tesla’s woes, Sreela Venkataratnam, Vice President of Finance and Business Operations, left the company after an 11-year tenure. Notably, several key Tesla executives departed following the company’s large-scale job cuts in April. Interestingly, Uber Technologies hired Rebecca Tinucci, former head of Tesla’s charging network, as its global head of sustainability.
Lucid’s CEO Takes Aim at Tesla
Lucid Group, a luxury EV manufacturer, continued to make headlines. CEO Peter Rawlinson, in an interview with Yahoo Finance, asserted that Lucid is ahead of Tesla in terms of technology and innovation. He believes that Tesla has become “distracted,” while Lucid has taken the mantle of the tech leader. Lucid is on track to complete its Arizona plant with a 90,000-unit annual capacity and expects to manufacture 9,000 Lucid Airs this year, along with the launch of the Gravity model.
Ford Scales Back EV Plans
Ford Motor Company, a legacy automaker, announced a significant adjustment to its EV strategy. The company has scrapped plans to launch three-row all-electric SUVs and will instead focus on hybrid models. Additionally, the rollout of Ford’s next-gen electric truck has been delayed to the second half of 2027. However, Ford will begin manufacturing new electric commercial vans using battery cells produced at its Tennessee plant. These changes are driven by rising competition from low-cost EV manufacturers, especially from China, and aggressive pricing strategies within the industry.
Workhorse and Canoo Face Struggles
Workhorse Group, an Ohio-based EV manufacturer, reported disappointing second-quarter results, with revenue falling short of expectations. The company attributed the decline to lower sales of its W4 CC vehicles. The quarterly report also included a going concern warning. Meanwhile, Canoo, a struggling lifestyle EV maker, saw its chief technology officer, Sohel Merchant, resign amid a significant reorganization. The company has implemented austerity measures, including closing its Los Angeles location and requiring employees to relocate to Texas or Oklahoma.
Overall Market Performance
The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) ended the week up 3.44%, reflecting the overall positive sentiment surrounding the EV sector. However, individual stocks experienced varying degrees of success.
Key EV Stock Movements for the Week:
* Tesla +1.94%
* Nio +3.29%
* XPeng +1.01%
* Li Auto +3.36%
* Workhorse -33.55%
* Hyzon Motors +20.59%
* Canoo -2.00%
* Rivian +5.68%
* Lucid +33.33%
* Faraday Future +41.21%
* Nikola -7.63%
* VinFast -3.68%
