Electric Vehicle Stocks Take a Hit After Weak Economic Data
The electric vehicle (EV) market experienced a turbulent week following the release of weak economic data. Most EV stocks ended the week lower, with Tesla, the market leader, giving back its mid-week gains due to Friday's jobs data-induced market sell-off.
# Tesla Announces FSD Timeline and Targets China and Europe
Despite the market downturn, Tesla made significant announcements regarding its Full Self-Driving (FSD) technology. The company outlined a timeline for launching FSD in its Cybertrucks and other geographies, including China and Europe. The rollout is expected to begin in September with the release of FSD Supervised v12.5.2, followed by additional features in October and FSD availability in China and Europe in Q1 2025, pending regulatory approval.
# Nio Stock Surges on Strong Q2 Results
Chinese EV startup Nio, Inc. reported better-than-expected revenue and improved margins in its second-quarter results. The company also issued an optimistic deliveries guidance for the third quarter and announced the upcoming launch of its first mass-market vehicle, the Onvo 60, in September. This positive news led to a significant jump in Nio's stock price, which ended the week up over 24%.
# Volvo Adjusts EV Ambitions and Other Industry News
Volvo Car AB, owned by Geely Automobile Holdings Limited, revised its EV ambitions, aiming for 90-100% of its global sales to be electrified by 2030, including both fully electric and plug-in hybrid models. This adjustment follows similar moves by other legacy automakers like General Motors and Ford, who have also scaled back their EV goals in recent months.
Meanwhile, struggling EV startup Faraday Future secured $30 million in financing commitments, while hydrogen fuel-cell energy company Hyzon Motors announced a reverse stock split to regain compliance with Nasdaq listing requirements.
# EV Stocks Performance Summary
The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) ended the week down 2.78%, reflecting the overall market sentiment. Individual EV stocks also experienced varying degrees of decline, with Tesla, Rivian, and Lucid Motors among the biggest losers.