Electric vehicle stocks fell across the board in the week ended Sept. 2 amid macro concerns that rocked the market. The August jobs report, the U.S. government’s decision to restrict chip exports to China, and the closure of the Nord Stream 1 offshore pipeline that supplies oil from Russia to Europe have all contributed to intensifying the crisis. risk aversion in the market.
Now, here are the key events that happened in the EV space over the week:
Tesla Gigafactories are operational: Tesla, Inc. TSLA would be looking for recruiters in Quebec, Canada to manage a large recruitment round. The Tech Crunch report made headlines about Canada as the location for the company’s next Gigafactory. The rumor comes on top of lobbying documents the company has filed with Canada and misplaced giveaways from Canadian politicians regarding Tesla Canada’s plans.
The Gigafactory in Berlin is also said to be dynamic in its recruitment, as German media rbb24 said, citing Tesla, which 120 apprentices have started with the company. This contribution follows the ramp-up of the plant’s production. Moreover, CEO Elon Musk tweeted this week that he spent a day going through the entire Giga Berlin production line and appreciated that the team there did a great job.
Meanwhile, Tesla China weathered a lean season in July as part of a factory overhaul. Giga Shanghai released 77,000 cars in August, according to preliminary data released by the China Passenger Car Association. This bodes well for the company as it seeks to increase volume after the first half slowdown due to factory closures in China.
Mixed sales of electric vehicles in China: This week saw the release of August sales results from Chinese electric vehicle makers, including Nio, Inc. NIO, XPeng, Inc. XPEV, Li Auto, Inc. LI and Warren Buffett –supported BYD Company Limited BYDDF. BYD posted another record month of sales and Nio saw sequential growth in shipments. XPeng and Li Auto saw their sales decline month on month.
Ford EV Sales Catalyze Strong August: Ford Motor Company F sales were up 27% year-over-year in August, thanks to an easier comparison with the year-ago period, which was marred by production disruptions and component shortages. This strength is partly attributable to Dearborn’s strong sales of its electric vehicle lines, including the Ford F-150 Lightning EV, E-transit and Mustang Mach-E truck.
The F-150 Lightning pickup is the fastest vehicle in Ford’s lineup at just eight days, the company said in the statement.
See also: Why Ford Stock looks set to bounce back despite a massive vehicle recall
Rivian Software Update for Camp Mode: Rivian Automotive, Inc. SHORE announced in a blog post this week that its latest software update delivers a range of features to make camping in its R1T pickup truck and R1S SUV even more comfortable and convenient. These features included the ability to level the vehicle when parked on rough or sloping terrain. It also allows users to optimize vehicle power while parked, set timers to charge coins and sockets, turn off interior displays, activate a special Camp courtesy mode, and illuminate the composite with spotlights in the side mirrors.
Lucid, Nikola to raise equity financing: LucidGroup, Inc. LCID and Nikola Company NKLA filed separately with the SEC to raise equity. Nikola plans to raise up to $400m in an ‘on the market’ offering to fund its proposed acquisition of the battery maker Romeo Power, Inc. RMO and the production of its semi-trailer Tre. Lucid, meanwhile, filed for record for raising up to $8 billion through equity offerings over the next three years.
Honda and LG will build a battery factory in the United States Honda Motor Co., Ltd. HMC and LG Energy Solutions have formed a joint venture to create a $4.4 billion EV battery manufacturing plant in the United States, likely located in Ohio. Construction is expected to begin in early 2023, and mass production is expected to begin by the end of 2025.
Canoo continues to lose its best talent: Canoo inc. GOVwhich recently announced plans to outsource manufacturing to fulfill its contract with Walmart, Inc. WMT, would see a key executive leave. Bloomberg reported that its manufacturing chief Jean Mocny leaves the company less than a year after his arrival. The report notes that the company recently lost several executives, including its former director of human resources and other employees in the talent acquisition department.
EV stock performance for the week: