We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EV Roundup: TSLA CEO Musk's Mysterious Tweets Make the Most Noise
Read MoreHide Full Article
Last week, Fisker, Inc. and Nikola Corporation (NKLA - Free Report) released third-quarter 2021 results. XL Fleet provided third-quarter preliminary updates. China-based electric vehicle (EV) players NIO Inc. (NIO - Free Report) and Li Auto (LI - Free Report) posted October delivery count. But what caught the most attention was EV king Tesla (TSLA - Free Report) CEO Musk’s tweets.
Last to last week, Tesla made big headlines as it entered the elite $1-trillion club, following the biggest-ever order from car rental giant Hertz. However, last week, Musk downplayed the $4.2-billion deal. On Nov 2, Musk took to Twitter to raise doubts about the potential deal with car rental giant Hertz. He tweeted: “No contract has been signed yet.” In fact, Musk also went on to clarify that demand for Tesla vehicles still overshoots supply, hence Hertz would not garner any discount on its large vehicle order. Thus, the deal will have zero impact on the company’s economics. Hertz followed up on Musk’s tweet by reiterating that it is still moving ahead with the purchase order and has already started receiving deliveries of Tesla vehicles. However, Hertz failed to confirm if a contract had or had not been signed with Tesla in light of Musk's tweet.
Over the weekend, Musk again left Twitterati open-mouthed with a bizarre poll asking his followers to vote whether he should sell 10% of his stock. The tweet read: “Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.” “I will abide by the results of this poll, whichever way it goes,” he added. With the majority of his followers voting in the favor of the stock sale, it remains to be seen if Musk keeps his promise.
1. Fisker inked a long-term battery supply deal with CATL for its upcoming all-electric Fisker Ocean SUV. Per the agreement, CATL will provide small and large battery packs to Fisker, with an initial battery capacity of more than 5 gigawatt-hours annually from 2023 through 2025. The primary high-capacity pack will use a lithium nickel manganese cobalt cell chemistry, while the second smaller pack will be based on lithium-ion phosphate chemistry. Together, the two different batteries will enable Fisker to offer a line-up of different ranges and levels of performance to consumers when the Ocean is rolled out. Fisker will utilize CATL’s unique dual-chemistry cell capability to optimize vehicle performance and achieve cost effectiveness across the Fisker Ocean line-up.
In a separate release, Fisker released third-quarter 2021 numbers. The company reported an adjusted loss per share of 37 cents, wider than the Zacks Consensus Estimate of 34 cents. Net cash used in operating activities and capital expenditure totaled $103.4 million and $15.8 million, respectively, for the quarter under review. Fisker exited the quarter with cash and cash equivalents of $1.4 billion.
2. Nikola reported third-quarter 2021 adjusted loss of 22 cents a share, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The firm’s research & development and selling, general and administrative costs flared up 53.2% and 193.3% year over year to $78.9 million and $192.9 million, respectively. As of Sep 30, Nikola had cash and cash equivalents of $586.9 million, down from $840.9 million on Dec 31, 2020. It is on track to deliver 25 pre-series Nikola Tre BEVs to dealers and customers by 2021-end.
3. NIO released its delivery count for the month of October 2021. The China-based EV company delivered 3,667 vehicles last month, which declined 27.5% year over year amid low production volume due to restructuring and upgrades to manufacturing lines. Supply-chain distortions amid chip crunch also played spoilsport. The deliveries consisted of 218 ES8s, 2,528 ES6s and 921 EC6s. As of Oct 31, cumulative deliveries of ES8, ES6 and EC6 totaled 145,703 vehicles.
4. Li Auto also released delivery numbers for October. The company delivered 7,649 Li ONEs last month, surging 107.2% year over year. As of October-end, the cumulative deliveries of Li ONEs totaled 95,516 units. The company exited the quarter with 162 retail stores in 86 cities, and 223 servicing centers and Li Auto-authorized body and paint shops in 165 cities.
5. XL Fleet provided third-quarter 2021 preliminary updates. The company expects the results to be impacted by the global chip shortage and a lack of new fleet chassis. Revenues are expected to come in at $3.2 million. XL Fleet expects to exit the third quarter with cash and cash equivalents of $367 million. Meanwhile, the company named Eric Tech as the new CEO. The change will be effective from Dec 1, 2021.
6. Rivian Automotive, which has filed for IPO, raised the offer price of its shares on Friday and is now seeking a roughly $65 billion valuation. This is higher than the $53 billion valuation that it aimed for early last week. The company now plans to offer 135 million shares priced within $72-$74 apiece, higher than the previous range of $57-$62. At the high end of the revised range, Rivian would raise nearly $10 billion at its market debut.
Price Performance
The following table shows the price movement of some of the major EV players over the past week and six-month period.
Image Source: Zacks Investment Research
In the past six months, all stocks have increased, apart from Lordstown. In the past week, all stocks have increased, apart from XPeng and Li Auto.
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry. Industry watchers will track China EV sales data for October 2021, which is likely to be released by the China Association of Automobile Manufacturers this week. Also, watch out for the quarterly earnings release of Workhorse and Hyliion.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
EV Roundup: TSLA CEO Musk's Mysterious Tweets Make the Most Noise
Last week, Fisker, Inc. and Nikola Corporation (NKLA - Free Report) released third-quarter 2021 results. XL Fleet provided third-quarter preliminary updates. China-based electric vehicle (EV) players NIO Inc. (NIO - Free Report) and Li Auto (LI - Free Report) posted October delivery count. But what caught the most attention was EV king Tesla (TSLA - Free Report) CEO Musk’s tweets.
Last to last week, Tesla made big headlines as it entered the elite $1-trillion club, following the biggest-ever order from car rental giant Hertz. However, last week, Musk downplayed the $4.2-billion deal. On Nov 2, Musk took to Twitter to raise doubts about the potential deal with car rental giant Hertz. He tweeted: “No contract has been signed yet.” In fact, Musk also went on to clarify that demand for Tesla vehicles still overshoots supply, hence Hertz would not garner any discount on its large vehicle order. Thus, the deal will have zero impact on the company’s economics. Hertz followed up on Musk’s tweet by reiterating that it is still moving ahead with the purchase order and has already started receiving deliveries of Tesla vehicles. However, Hertz failed to confirm if a contract had or had not been signed with Tesla in light of Musk's tweet.
Over the weekend, Musk again left Twitterati open-mouthed with a bizarre poll asking his followers to vote whether he should sell 10% of his stock. The tweet read: “Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.” “I will abide by the results of this poll, whichever way it goes,” he added. With the majority of his followers voting in the favor of the stock sale, it remains to be seen if Musk keeps his promise.
Tesla currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stories That Made Headlines
1. Fisker inked a long-term battery supply deal with CATL for its upcoming all-electric Fisker Ocean SUV. Per the agreement, CATL will provide small and large battery packs to Fisker, with an initial battery capacity of more than 5 gigawatt-hours annually from 2023 through 2025. The primary high-capacity pack will use a lithium nickel manganese cobalt cell chemistry, while the second smaller pack will be based on lithium-ion phosphate chemistry. Together, the two different batteries will enable Fisker to offer a line-up of different ranges and levels of performance to consumers when the Ocean is rolled out. Fisker will utilize CATL’s unique dual-chemistry cell capability to optimize vehicle performance and achieve cost effectiveness across the Fisker Ocean line-up.
In a separate release, Fisker released third-quarter 2021 numbers. The company reported an adjusted loss per share of 37 cents, wider than the Zacks Consensus Estimate of 34 cents. Net cash used in operating activities and capital expenditure totaled $103.4 million and $15.8 million, respectively, for the quarter under review. Fisker exited the quarter with cash and cash equivalents of $1.4 billion.
2. Nikola reported third-quarter 2021 adjusted loss of 22 cents a share, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The firm’s research & development and selling, general and administrative costs flared up 53.2% and 193.3% year over year to $78.9 million and $192.9 million, respectively. As of Sep 30, Nikola had cash and cash equivalents of $586.9 million, down from $840.9 million on Dec 31, 2020. It is on track to deliver 25 pre-series Nikola Tre BEVs to dealers and customers by 2021-end.
3. NIO released its delivery count for the month of October 2021. The China-based EV company delivered 3,667 vehicles last month, which declined 27.5% year over year amid low production volume due to restructuring and upgrades to manufacturing lines. Supply-chain distortions amid chip crunch also played spoilsport. The deliveries consisted of 218 ES8s, 2,528 ES6s and 921 EC6s. As of Oct 31, cumulative deliveries of ES8, ES6 and EC6 totaled 145,703 vehicles.
4. Li Auto also released delivery numbers for October. The company delivered 7,649 Li ONEs last month, surging 107.2% year over year. As of October-end, the cumulative deliveries of Li ONEs totaled 95,516 units. The company exited the quarter with 162 retail stores in 86 cities, and 223 servicing centers and Li Auto-authorized body and paint shops in 165 cities.
5. XL Fleet provided third-quarter 2021 preliminary updates. The company expects the results to be impacted by the global chip shortage and a lack of new fleet chassis. Revenues are expected to come in at $3.2 million. XL Fleet expects to exit the third quarter with cash and cash equivalents of $367 million. Meanwhile, the company named Eric Tech as the new CEO. The change will be effective from Dec 1, 2021.
6. Rivian Automotive, which has filed for IPO, raised the offer price of its shares on Friday and is now seeking a roughly $65 billion valuation. This is higher than the $53 billion valuation that it aimed for early last week. The company now plans to offer 135 million shares priced within $72-$74 apiece, higher than the previous range of $57-$62. At the high end of the revised range, Rivian would raise nearly $10 billion at its market debut.
Price Performance
The following table shows the price movement of some of the major EV players over the past week and six-month period.
In the past six months, all stocks have increased, apart from Lordstown. In the past week, all stocks have increased, apart from XPeng and Li Auto.
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry. Industry watchers will track China EV sales data for October 2021, which is likely to be released by the China Association of Automobile Manufacturers this week. Also, watch out for the quarterly earnings release of Workhorse and Hyliion.