Tesla, Inc. took center stage in the electric vehicle sector by providing investors with positive news during its earnings release and call. Despite missing earnings and revenue expectations, Tesla reassured investors by reaffirming plans for an upcoming affordable EV model while also confirming the accelerated production start of the new vehicle. The company's decision to roll out a low-end model was seen as crucial by analysts to increase sales and recover from a recent sales slump, although skeptics speculated on the absence of a sub-$30K car in the pipeline.
Additionally, Tesla confirmed plans for the Tesla Semi, set to be produced at a new factory in Reno, with the first deliveries to external customers expected in early 2026. Amid these developments, Tesla's Investor Relations Head announced his departure after a seven-year stint, highlighting the need for a break to spend quality time with family. While some analysts remained bullish on Tesla's future, others revised their estimates for the company post-earnings call.
In other news, Fisker, Inc. CEO Henrik Fisker disclosed that the company was exploring a potential sale with four automakers, as the EV maker faces liquidity challenges, casting doubt on its ability to continue as a going concern. Similarly, Vietnamese EV manufacturer VinFast Auto Ltd. may receive additional support from its founder, who pledged to invest another $1 billion into the company during a shareholders meeting.
On the heels of Tesla's pricing strategy, Rivian followed suit by offering discounts of up to $5,000 on new R1 models when customers trade in select gas-powered vehicles. This move aimed to attract more customers and boost sales, similar to Tesla's approach of reducing prices on specific models. Additionally, the KraneShares Electric Vehicles and Future Mobility Index ETF saw a gain at the end of the week, suggesting a positive sentiment in the electric vehicle market as a whole.