Rivian Automotive has reportedly made a confidential deal with the United Auto Workers union, contingent on financial milestones. This comes as Rivian secured a $6.6 billion loan from the Department of Energy for expansion, facing criticism for inefficient use of taxpayer money. The potential unionization could impact labor relations in the EV industry. Rivian aims for profitability by 2025 with its new R2 model.
Nikola Corporation, the electric truck manufacturer, has yet to return a significant portion of the battery electric trucks it recalled in August 2023. Despite returning 78 trucks, the company still has 81 trucks left to deliver, impacting its delivery targets and financial performance. Nikola’s third-quarter revenue fell short of analyst expectations, and the company also reported a wider-than-expected loss. The stock price dropped by 7% following the news.
While China’s electric vehicle (EV) industry is thriving domestically, an expert argues that its offshoring strategy may not be as successful as Japan’s auto industry in the 1980s due to factors like protectionism and changing labor market dynamics. Challenges like countervailing duties from the EU and a certification test scandal also present obstacles for Chinese EV makers.
Li Auto, a Chinese electric vehicle (EV) manufacturer, has reached a significant milestone of 900,000 cumulative deliveries, making it the first Chinese automaker to achieve this feat. The company’s strong performance comes amid industry challenges including weak domestic demand and tariffs. This news has boosted Li Auto’s stock price, which has been struggling in recent months.
ZEEKR Intelligent Technology Holding (NYSE: ZK) exceeded expectations in the second quarter of 2024, reporting a 58.4% year-over-year revenue increase and surpassing analyst forecasts for both revenue and adjusted net loss per ADS. The company’s vehicle deliveries also saw significant growth, driven by increased sales volume and improved vehicle margins.
The Union Budget 2024 is highly anticipated by the electric vehicle (EV) sector, which expects substantial policy support and incentives. Industry leaders express their hopes for a comprehensive Battery Swapping Policy, increased FAME III allocation, incentives for local production, and GST reforms. They emphasize the need for affordable EVs, expanded charging infrastructure, simplified financing, and long-term policies to drive adoption and establish India as a global EV leader.
Embattled electric vehicle manufacturer Fisker Inc. has announced its intention to seek bankruptcy protection within 30 days if it fails to obtain waivers from its debt holders or secure sufficient capital to settle its obligations. The company’s financial situation has deteriorated significantly, with cash reserves plummeting and a net loss of $463.6 million reported in the fourth quarter of 2023. Fisker has also faced setbacks with its production and sales, resulting in a production pause and price cuts on its Ocean SUV to stimulate demand. This news comes amid a broader downturn in the EV industry, with Canoo Inc. raising concerns about its ability to continue as a going concern and Lordstown Motors filing for bankruptcy protection last year.
Despite facing a price war with Tesla, Li Auto (LI) remains a compelling buy due to its strong fundamentals and attractive valuation. The company’s rapid delivery growth, strong balance sheet, and ability to exercise economies of scale position it well to sustain the competition. Moreover, the launch of the Li L6 model and the long-term potential for software and subscription revenue growth support the company’s growth trajectory.
