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EV Roundup: TSLA-Talon Deal, NIO-Baosteel Pact & More
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Electric vehicle (EV) popularity and adoption are soaring with each passing day. Last week, 2021 sales data of new energy vehicles (NEVs) in China was released. According to data compiled by the China Passenger Car Association, full-year deliveries of NEVs (including all electric, hybrids and fuel cell vehicles) skyrocketed 169% to a record 2.99 million units. Sales of NEVs more than doubled both in November and December. Deliveries jumped 122.3% and 138.9% year over year in November and December to 378,000 and 505,000 units, respectively. Sales of NEVs in China soared for the 18th consecutive month in December 2021. Per CAAM, sales of NEVs surged 157.5% to 3.52 million units in 2021.
On the news front, Tesla (TSLA - Free Report) inked its first U.S. nickel supply deal with Talon to drive sustainability in EV battery storage and manufacture. EV startup Rivian Automotive (RIVN - Free Report) officially announced the resignation of its COO, Rod Copes. This comes at a time when the company is grappling with production ramp-up challenges. China-based NIO Inc. (NIO - Free Report) strengthened carbon-neutral goals on the deal with Baosteel. GreenPower (GP - Free Report) inked a deal with the state of West Virginia for leasing a manufacturing facility in South Charleston to manufacture zero-emission, all-electric school buses. Nikola Corporation (NKLA - Free Report) grabbed attention as its Tre BEV was approved by the California Air Resources Board (CARB) as a zero-emission vehicle.
Top Stories of the Week
Tesla signed its first nickel supply deal in the United States, selecting Talon’s Tamarack mine project in Minnesota. Talon's Minnesota project is a joint venture with Rio Tinto. It ensures a key U.S. source of the metal for Tesla battery factories in Texas and Nevada while reducing the company's supply lines.
Tesla plans to buy 75,000 tons of nickel concentrate over the next six years and smaller amounts of cobalt and iron ore, at London Metals Exchange-listed prices. However, it is unclear where TSLA will refine the nickel concentrate as the United States does not have a nickel refinery. The EV behemoth currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rivian made an official announcement last week that its COO, Rod Copes, has resigned. Copes officially left Rivian in December 2021. RIVN stated that Copes’ departure was in a phased manner spanning several months to ensure that the continuous flow of duties and responsibilities among Rivian’s leadership team is not hampered. The CEO’s departure comes at a critical juncture when Rivian is facing challenges in the production ramp-up of R1T and R1S EVs.
In a positive development, Rivian filed a new trademark for bicycles and electric bikes as well as their corresponding structural parts. It is probably an indication that the company is watching for the e-bike domain and seeks to diversify its portfolio with a cheaper product to mass-produce than electric pickup trucks, in line with its targeted “adventure” seeking demographic.
NIO entered into a strategic partnership with China steel producer Baosteel, per which the companies will join forces in areas like products, supply chain and state-of-the-art technology applications. The financial details of the deal are still under wraps. The companies are optimistic about the partnership, which is aimed at solidifying their cooperation in zero-carbon areas.
For NIO, this cooperation will provide it with a global partner to work hand-in-hand on products, supply chain, latest technology, new material applications and carbon-free pathways. It will also help the company leverage Baosteel’s expertise in products like non-oriented silicon steel and automotive plates.
GreenPower signed an agreement with the state of West Virginia for leasing/purchasing a manufacturing facility in South Charleston to manufacture zero-emission, all-electric school buses. Per the agreement, the state will purchase a minimum of $15 million of GreenPower vehicles built at the facility. GreenPower will acquire properties located in South Charleston spanning 9.5 acres and an 80,000 square foot building. The facility will be deployed by the company for manufacturing carbon-neutral, all-electric school buses by second-half 2022.
The facility will create new employment opportunities in the state with the start of manufacturing later this year, for which the state will provide up to $3.5 million in employment incentive payments to GreenPower. The ownership of the properties will be transferred to GP once total lease and incentive payments come to $6.7 million. The partnership will accelerate West Virginia’s transition to green modes of transportation, which is the need of the hour.
Nikola announced that Nikola Tre battery-electric vehicle (BEV) has been consented to by the CARB for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project ("HVIP") program. The approval allows vehicle purchasers to be eligible for an incentive worth $120,000 per truck. The Nikola Tre BEV, having a range of up to 350 miles, is expected to have the longest range among the current HVIP eligible Class 8 tractors. NKLA is enthusiastic about the approval and looks forward to contributing toward reducing greenhouse gas emissions and lowering the total cost of ownership for Nikola’s California-based customers.
In another development, Covenant Logistics inked a Letter of Intent for 10 Nikola Tre BEVs and 40 Nikola Tre fuel cell electric vehicles (FCEVs) upon the successful completion of a Nikola Tre BEV and Nikola Tre FCEV demonstration program. Nikola is expected to deliver the first Tre BEV truck and mobile charging trailer for testing to Covenant in second-quarter 2022, with the Tre FCEV testing expected to follow in 2023.
Price Performance
The following table shows the price movement of some of the major pure-play EV makers over the past week and six-month period.
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What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
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EV Roundup: TSLA-Talon Deal, NIO-Baosteel Pact & More
Electric vehicle (EV) popularity and adoption are soaring with each passing day. Last week, 2021 sales data of new energy vehicles (NEVs) in China was released. According to data compiled by the China Passenger Car Association, full-year deliveries of NEVs (including all electric, hybrids and fuel cell vehicles) skyrocketed 169% to a record 2.99 million units. Sales of NEVs more than doubled both in November and December. Deliveries jumped 122.3% and 138.9% year over year in November and December to 378,000 and 505,000 units, respectively. Sales of NEVs in China soared for the 18th consecutive month in December 2021. Per CAAM, sales of NEVs surged 157.5% to 3.52 million units in 2021.
On the news front, Tesla (TSLA - Free Report) inked its first U.S. nickel supply deal with Talon to drive sustainability in EV battery storage and manufacture. EV startup Rivian Automotive (RIVN - Free Report) officially announced the resignation of its COO, Rod Copes. This comes at a time when the company is grappling with production ramp-up challenges. China-based NIO Inc. (NIO - Free Report) strengthened carbon-neutral goals on the deal with Baosteel. GreenPower (GP - Free Report) inked a deal with the state of West Virginia for leasing a manufacturing facility in South Charleston to manufacture zero-emission, all-electric school buses. Nikola Corporation (NKLA - Free Report) grabbed attention as its Tre BEV was approved by the California Air Resources Board (CARB) as a zero-emission vehicle.
Top Stories of the Week
Tesla signed its first nickel supply deal in the United States, selecting Talon’s Tamarack mine project in Minnesota. Talon's Minnesota project is a joint venture with Rio Tinto. It ensures a key U.S. source of the metal for Tesla battery factories in Texas and Nevada while reducing the company's supply lines.
Tesla plans to buy 75,000 tons of nickel concentrate over the next six years and smaller amounts of cobalt and iron ore, at London Metals Exchange-listed prices. However, it is unclear where TSLA will refine the nickel concentrate as the United States does not have a nickel refinery. The EV behemoth currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rivian made an official announcement last week that its COO, Rod Copes, has resigned. Copes officially left Rivian in December 2021. RIVN stated that Copes’ departure was in a phased manner spanning several months to ensure that the continuous flow of duties and responsibilities among Rivian’s leadership team is not hampered. The CEO’s departure comes at a critical juncture when Rivian is facing challenges in the production ramp-up of R1T and R1S EVs.
In a positive development, Rivian filed a new trademark for bicycles and electric bikes as well as their corresponding structural parts. It is probably an indication that the company is watching for the e-bike domain and seeks to diversify its portfolio with a cheaper product to mass-produce than electric pickup trucks, in line with its targeted “adventure” seeking demographic.
NIO entered into a strategic partnership with China steel producer Baosteel, per which the companies will join forces in areas like products, supply chain and state-of-the-art technology applications. The financial details of the deal are still under wraps. The companies are optimistic about the partnership, which is aimed at solidifying their cooperation in zero-carbon areas.
For NIO, this cooperation will provide it with a global partner to work hand-in-hand on products, supply chain, latest technology, new material applications and carbon-free pathways. It will also help the company leverage Baosteel’s expertise in products like non-oriented silicon steel and automotive plates.
GreenPower signed an agreement with the state of West Virginia for leasing/purchasing a manufacturing facility in South Charleston to manufacture zero-emission, all-electric school buses. Per the agreement, the state will purchase a minimum of $15 million of GreenPower vehicles built at the facility. GreenPower will acquire properties located in South Charleston spanning 9.5 acres and an 80,000 square foot building. The facility will be deployed by the company for manufacturing carbon-neutral, all-electric school buses by second-half 2022.
The facility will create new employment opportunities in the state with the start of manufacturing later this year, for which the state will provide up to $3.5 million in employment incentive payments to GreenPower. The ownership of the properties will be transferred to GP once total lease and incentive payments come to $6.7 million. The partnership will accelerate West Virginia’s transition to green modes of transportation, which is the need of the hour.
Nikola announced that Nikola Tre battery-electric vehicle (BEV) has been consented to by the CARB for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project ("HVIP") program. The approval allows vehicle purchasers to be eligible for an incentive worth $120,000 per truck. The Nikola Tre BEV, having a range of up to 350 miles, is expected to have the longest range among the current HVIP eligible Class 8 tractors. NKLA is enthusiastic about the approval and looks forward to contributing toward reducing greenhouse gas emissions and lowering the total cost of ownership for Nikola’s California-based customers.
In another development, Covenant Logistics inked a Letter of Intent for 10 Nikola Tre BEVs and 40 Nikola Tre fuel cell electric vehicles (FCEVs) upon the successful completion of a Nikola Tre BEV and Nikola Tre FCEV demonstration program. Nikola is expected to deliver the first Tre BEV truck and mobile charging trailer for testing to Covenant in second-quarter 2022, with the Tre FCEV testing expected to follow in 2023.
Price Performance
The following table shows the price movement of some of the major pure-play EV makers over the past week and six-month period.
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.