The week ending September 27th saw a surge in electric vehicle (EV) stocks, with Tesla, Inc. (TSLA) and Chinese startups leading the charge. Investors flocked to Tesla ahead of anticipated catalysts in October, while Chinese EV makers benefited from the positive sentiment generated by China’s stimulus measures aimed at bolstering domestic growth.
Tesla’s China Strength Continues:
Weekly insured registration data from China revealed a strong 13,800 Tesla EVs registered in the week of September 16-22, a slight decline of 11.54% from the previous week. Despite a two-day national holiday, Future Fund’s Gary Black highlighted that third-quarter deliveries were up 18.5% year-over-year and 19.9% higher than the previous quarter. He believes Tesla China is on track for its best quarter ever. The company’s extended five-year, zero-interest financing program for its made-in-China Model 3 and Model Y variants until the end of October may be a contributing factor to these sales, although it could raise concerns about potential margin erosion. Analysts are expecting a strong third-quarter delivery beat, fueled by China’s performance, despite challenges in the European region. Barclays’ Dan Levy anticipates deliveries of 470,000 units, exceeding the consensus estimate of 461,000 units. Wedbush’s Daniel Ives also expects sales to surpass the consensus forecast, pointing to a “solid rebound” in the second half of the year due to China’s strong performance and price stabilization.Rivian Faces Downgrade:
Morgan Stanley’s Adam Jonas downgraded Rivian Automotive, Inc. (RIVN) shares from Overweight to Equal-Weight, reducing the price target from $16 to $13. The analyst attributed this downgrade to the incorporation of capital intensity associated with autonomous vehicles and autonomous driver assistance systems, which may be necessary to fulfill the technological requirements that attracted Volkswagen AG as a joint venture partner. Jonas increased Rivian’s annual capital expenditure estimate by $200 million to $300 million per year, starting in 2026. He also highlighted the uncertainty surrounding the cost structure of the joint venture.Canoo Enters the UK Market:
Struggling EV startup Canoo, Inc. (GOEV) announced its official launch in the UK with the establishment of Canoo Technologies UK Limited. The company chose Bicester Motion, a former WWII Royal Air Force base, as a key location symbolizing innovation and sustainability. While Canoo sees this as a significant step in its global expansion, reports surfaced that Christoph Kuttner, the last of the co-founders from the original team, has left the company. TechCrunch also revealed that Canoo is facing two new lawsuits from suppliers related to the drivetrains powering its electric vehicles.Nio Launches Low-End EV:
Chinese EV startup Nio, Inc. (NIO) began deliveries of its first-ever low-end EV, the L60, under the ONVO brand name. The Shanghai-based EV maker is initially distributing the L60 with a 60-kWh battery pack, with deliveries of long-range versions featuring an 85-kWh pack expected to commence in December. The L60, priced starting at 206,900 yuan ($29,510), competes directly against Tesla’s best-selling Model Y.GM Partners for Fastest Charging EV Battery:
General Motors Corp. (GM) and its Chinese joint venture partner SAIC have teamed up with battery giant CATL to introduce the fastest-charging EV battery. The battery, based on lithium-iron-phosphate chemistry, supports 6C ultra-fast charging.EV Stock Performance:
The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) closed at $22.51 on Friday, up 3.39% for the day. The ETF gained a significant 16.51% for the week. Here’s a breakdown of how other EV stocks performed during the week:| Company | Weekly Change (+/-) |
|————————–|———————-|
| Tesla | +9.32% |
| Nio | +23.49% |
| XPeng, Inc. | +32.50% |
| Li Auto, Inc. | +19.68% |
| Workhorse, Inc. | +24.08% |
| Hyzon Motors, Inc. | +14.47% |
| Canoo | +5.94% |
| Rivian | -0.94% |
| Lucid Group, Inc. | +2.87% |
| Faraday Future | -17.51% |
| Nikola Corp. | -14.71% |
| VinFast Auto Ltd. | +7.10% |
The EV sector continues to evolve, with both established players like Tesla and emerging Chinese companies making significant strides. The market is closely watching developments in China, which is expected to be a key driver of growth in the EV industry.
