Electric vehicle stocks fell across the board yet again in the week that ended on Jan. 19 as the broader market weakness in the first half of the week and negative sentiment toward the sector generated weakness. Market leader Tesla, Inc. (NASDAQ:TSLA) pulled back toward the lowest level since Nov. 10, 2023 before finishing just off its current level.
Here are the key events that happened in the EV space during the week:
Tesla Price Cuts, Falling Short Interest And More: Tesla resumed price cuts this week, stirring anxiety over margins just ahead of the company’s earnings release on Wednesday. It raised the prices of several Model 3 variants in China and Model Y variants in European countries. Commenting on the price cuts, Future Fund Managing Partner Gary Black said he sees a 25- to 30-cent impact from the price cuts in China and a 15-cent impact from the cuts in Europe. Consequently, the fund manager lowered his 2024 adjusted earnings per share estimate for Tesla from $4.20 to $3.75.
Data shared by S3 Partners Ihor Dusaniwsky showed that the short interest in Tesla stock fell following the rally seen in 2023. As a result, the Elon Musk-led company ceded its position as the most shorted stock to Apple and is now the third-most shorted stock behind tech giant Microsoft.
Musk ruffled many feathers this week by suggesting that he wanted about 25% voting control in Tesla in order to make the company a leader in Ai and robotics. “Unless that is the case, I would prefer to build products outside of Tesla,” he said.
CNBC Mad Money host Jim Cramer took a swipe at the Tesla CEO’s demand. “We have a CEO [who’s] getting a little petulant … again, talking about needing to control 25% to innovate,” he said. The stock picker also suggested that Tesla could be the first to drop out of the “Magnificent 7” list.
See Also: Best Electric Vehicle Stocks
Rivian Stock Downgraded: Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) fell over 14% this week after Deutsche Bank tempered its opinion on the stock. The firm downgraded the stock from “Buy” to “Neutral” and reduced its price target from $29 to $19, Investing.com reported.
The firm attributed its tempered expectations to downside risks to its 2024 volume and gross margin estimates for the company. It sees the company guide to a…
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