Tesla Alienates Investors With Sketchy Near-term Outlook, Rivian’s Rumored R2 Global Premiere, Canoo On A Roll: Biggest EV Stories Of The Week

Electric-vehicle shares continued to bounce around the bottom in the week that ended on Jan. 26, with Tesla, Inc.’s (NASDAQ:TSLA) disappointing fourth-quarter results weighing down on the space. The Elon Musk-led company’s double miss set off concerns regarding quarterly results due by its smaller rivals.

Here are the key events that happened in the EV space during the week:

Tesla’s Double Miss: Weighed down by slowing demand and shrinking margins, Tesla reported its second straight quarter of double miss. The company also alienated investors by guiding to a significant slowdown in volume growth. The stock sank to an eight-month low on Thursday in reaction to the disappointing results, and analysts were quick to reduce their 12-month price targets for the stock.

Analysts panned the company for not addressing the near-term issues such as demand and margin trajectory on the earnings call. Instead, Musk and team delved into initiatives, such as Optimus and full-self driving technology, which have long-term implications for the company and its stock.

Cathie Wood’s Ark Invest, which is bullish on Tesla, took advantage of the weakness and bought Tesla shares for two straight days following the earnings.

Rivian R2 Launch Rumors: Irvine, California-based Rivian Automotive, Inc. (NASDAQ:RIVN) was in the news this week after a meeting agenda from the Laguna Beach City Council revealed that the company had applied for permission to showcase six vehicles at Main Beach Park on March 7 for a “half-day” public event. The event is intended to mark the global launch of the next-generation EV. A map provided in the document hinted at a “Rivian R2 launch.”

Separately, Needham EV analyst Chris Pierce cut his price target for the stock from $25 to $22 even as he reiterated a “Buy” rating. “We disagree with bearish investors who see RIVN becoming demand constrained in real time, but we lower our ’24 delivery estimates to better reflect potential initial ’24 vehicle production guidance, pushing our gross margin estimates lower,” the analyst said.

See Also: Best Electric Vehicle Stocks

Canoo Flouts Contract Win: Despite struggling with a liquidity crunch, Canoo, Inc. (NASDAQ:CANOO) is making strides on orders. The company said this week that the U.S. Postal Service will purchase six…