The return of risk appetite in the market helped electric vehicle stocks rebound in the week ending June 24. Most stocks, with the exception of some second-tier electric vehicle makers, posted solid gains. Gains were led by the Chinese trio as they extended their rally amid an inflection in sentiment towards Chinese equities generally.
Here are the key events that happened in the EV space during the week:
Musky comments dominate: Tesla, Inc. TSLA chief executive officer Elon Musk caused a stir this week with comments he shared in an interview that premiered this week and also at the Qatar Economic Forum hosted by Bloomberg.
In an interview at Tesla owners of Silicon Valley, Musk talked about two of his most recent Gigafactories in Berlin and Austin losing billions of dollars, calling them gigantic money ovens with tons of expenses and virtually no production.
Speaking virtually at the QEF, Musk touched on a host of topics. He confirmed the 10% headcount reduction that had been mentioned earlier and said it would happen over the next three months. Incidentally, it emerged that employees terminated by Tesla had filed a lawsuit against the company for failing to meet the 60-day notification requirement imposed by labor law.
Musk also disputed research that the German automaker Volkswagen AG VWAGY will overtake Tesla as the world’s leading electric vehicle brand by 2024.
As the June quarter draws to a close, sell-side analysts have released comments suggesting a soft June quarter. But most of them are optimistic that Tesla should be able to make up the shortfall with strong second-half performance.
In another key development, Tesla is planning a two-week shutdown related to maintenance at its Giga Shanghai factory. Following the upgrade, the company plans to increase production to almost 22,000 cars per week.
Tesla’s Enhanced Autopilot option, considered a precursor to its fully autonomous driving software, has been made available to car owners in the United States, Canada and China. In the United States, it can be activated for $6,000.
Related Link: Tesla’s Price Hike, Layoffs, Increased EV Delivery Times: How Does It All Connect in a “Tough June Quarter?”
Nio vehicle involved in a fatal fatal accident: A Nio, Inc. NIO test vehicle fell from the third floor of the Shanghai Automotive Innovation Port parking lot. Two digital cockpit testers lost their lives in the accident. Reports suggest the crash involved an ET7 sedan and was caused by the driver putting it in the wrong gear.
Ford will build an electric vehicle factory in Spain: Ford Motor Company F said this week that it plans to set up an electric vehicle manufacturing plant based on next-generation architecture in Spain later this decade. Dearborn, however, hinted at job losses, due to the plans, at its existing Spanish and German factories.
Lucid opens a retail unit in Seattle: LucidGroup, Inc. LCID announced the opening of its first Pacific Northwest location at University Village in Seattle, Washington. With this Lucid Studio, 28 studios and service centers are now open in North America.
Lordstown is renewing its stamina crafting efforts: An exclusive FleetOwner report suggests that Lordstown Motors Corp. STROLL will finally start producing its stalled Endurance pickup in the coming months. The company intends to use Cincinnati Bengals star quarterback Joe Terrier as its brand ambassador and working on a new marketing campaign. The NFL player reportedly visited the Ohio factory this week.
Toyota recall: Toyota Motor Corporation MT, which launched its first all-electric bZ4X in April, has issued a global recall of around 2,700 units of the vehicle due to the risk of wheel detachment. A large part of these vehicles come from Europe.
Related Link: The Biden Administration Reportedly Approached Tesla on Day One in Office: What Was It?