EV Stocks Decline Amidst Market Volatility, But Positive Developments Emerge from Lucid and XPeng

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EV Stocks Decline Amidst Market Volatility, But Positive Developments Emerge from Lucid and XPeng

A Weekly Recap

The week of October 11th saw a decline in most electric vehicle (EV) stocks, influenced by challenging economic data and negative market reactions to Tesla's "We, Robot" event.

Despite impressive product announcements, including the Cybercab and Cybervan, Tesla's stock fell nearly 9% following the event. Investors were concerned about the production timeline for the Cybercab, which is expected to be released in 2026 or 2027. However, Tesla achieved a major milestone at its Giga Shanghai factory, producing its 3 millionth vehicle.

Luxury EV maker Lucid Group exceeded analyst expectations with third-quarter deliveries of 2,781 vehicles, a 16% increase from the previous quarter and a 91% increase year-over-year. However, production fell sequentially, and the company faces the challenge of producing 3,358 units in the fourth quarter to meet its full-year target.

General Motors has decided to move away from its unified battery system concept, opting for program-specific batteries. The company also plans to transition to lithium iron phosphate battery technology, which could reduce EV costs by $6,000. GM expects its EV losses to peak this year and profitability to improve significantly in 2024.

Chinese EV startup XPeng unveiled the P7+ all-electric sedan, its first "artificial intelligence-defined vehicle." Presales begin at the 2024 Paris auto show, with deliveries starting in China in early November.

The stalemate over European Union tariffs on China EV imports continues, with China urging the EU not to conduct separate negotiations over the price of made-in-China EVs sold in the EU.

Overall, the EV market experienced a challenging week, with most stocks declining. However, some companies, like Lucid and XPeng, reported positive developments.